What are Customer Metrics and Why do I Need Them?
Customer metrics are buzzwords in the business world that have been getting plenty of attention in recent years. In simplest terms, customer metrics are simply measurements used to gauge the customer – whether for loyalty and retention, marketing or new product development. There are many different types of customer metrics used today, but not all of them will benefit all companies their customer service endeavors. It is important to understand the precise purpose of customer metrics, as well as the various options available, to help companies target their research to their specific service needs.
Types of Customer Metrics
There are a number of customer metrics used by businesses today, including:
One of the best metrics used by customer service managers, customer loyalty metrics lets you know a customer’s tendency to choose your business, product or service over another. Loyal customers are the bread and butter of most companies today. They not only bring your repeat business, but they also expand your customer base through word-of-mouth advertising. There are numerous ways to measure customer loyalty, including satisfaction surveys and telephone interviews to solicit customer feedback.
This metric specifically looks at the value a customer places on your business. Value usually consists of an equation that includes price, service and quality in its variables. This type of metric looks directly at how customers view your business vs. your competition and provides you with valuable information on what you might need to adjust in terms of both product and service quality, as well as price, to build customer loyalty in your own company. While this metric doesn’t only apply to customer service, service is certainly a factor in the value equation that must be carefully evaluated.
Most customer service managers tend to like this particular metric because it is one of the easiest to measure. Conversions refer to potential customers who become actual customers, which is particularly important for online businesses. Conversion rates are relatively objective and easy to track, with the right technology in place. You can also track conversion rates in your office, by totaling the number of people who come into your business and the number of products and services actually sold to those individuals.
Call center metrics offer precise information as to where your call center needs to improve to offer a higher level of service overall. These metrics may be very easy to analyze, dealing with data like the number of calls answered, time customers spend on hold and number of calls required for resolution. These numbers can open the door for creative solutions in your call center that help you raise your standard of service to a new level. Call center metrics may be especially important for your customer service quality because it helps you see very specific areas where your department needs to improve.
No matter what sort of customer metrics you choose, gathering data about your customers and your service quality can help you improve your customer service in the future. While it may seem like a lot of work to get these metrics in place, the information they provide may prove invaluable in your endeavor to take your service to the next level.
- Meredith Estep