Customer relationship management: some metric and how to calculate them
At present, customer relationship management is one of the most important business concerns. After all, if the company offers customers the best possible experience, it will be easier to retain and please them, getting a long-term success.
To be effective in managing this, it is essential for strategic business decisions to be based on customer relationship metrics. These indicators show the true situation of the whole buying and selling experience.
Here we talk a little more about the importance of customer relationship management and the key metrics you should be monitoring.
HOW IMPORTANT ARE THE METRICS FOR CUSTOMER RELATIONSHIP MANAGEMENT?
Metrics provide intelligence and awareness to managers. They make business decisions to be more compatible with the brand’s reality and the relationship with the customer.
For example, there is no point in making major investments in a marketing campaign if it is not aligned with the needs and expectations of your target audience.
Therefore, this monitoring makes possible to better address the customer relationship management. With this, companies make better and more effective decisions by knowing the reality of their internal processes, as well as the market situation and customer satisfaction.
TAKE A LOOK AT THE KEY METRICS YOU SHOULD BE MONITORING
Here are five relevant metrics for companies that want to track the evolution in customer service and relationship quality. In this way, it is possible to get improvements in customer relationship management. Take a look!
Net Promoter Score (NPS) is a metric that reveals the success of customer relationship management. This index may make it possible for the company to meet its consumers’ expectations.
In order to calculate it, you would need to ask customers after their interaction with the brand about how much he would recommend your brand. For example: “On a scale from 0 to 10, how much would you recommend this company to a friend or family member?”
The results can be interpreted as follows:
– Detractors: those who selected from 0 to 6;
– Neutral Customers: those who answered 7 or 8;
– Promoters: those who selected 9 and 10
If there is an excess of detracting customers, the next step is to identify the causes of their dissatisfaction. After all, we have to correct the problems in order to improve the relationship and customer service.
2. Customer Retention Index
When you are satisfied with the service that a brand provides to you, you are welcome to buy their products periodically. It means that the company has been able to retain the consumer loyalty.
And, the larger the number of loyal customers, the better are the results and business profits. In addition, loyal consumers end up to be brand promoters and disseminate its benefits to other people.
Therefore, it is essential that we monitor this metric to identify the impact of customer relationship management strategies. But, how do you measure this number? The retention rate may be verified according to the time that the customer has maintained to be subscripted to a particular service or the recurrence of purchases.
3. Cross-Selling and Up-Selling
Cross-selling and up-selling strategies are implemented to average sales ticked of products and services. Their goals are:
– Making customers want to add more products to the shopping cart;
– Encouraging customers to change the service into a more complete version.
By constantly monitoring these indexes, managers check if their strategies were correctly developed. It is also possible to evaluate how your agents or the sales team approaches are doing.
4. Churn Index
The Churn index indicates the number of service cancellations. It is important to stick to this metric, as if it raises, should be an indication of problems in customer relationship management. In addition, it also indicates falls in the quality of the service and even of a product or service that is being sold.
To calculate it, simply relate the number of cancellations to purchases in a given period. In the event that Churn outperforms new customers, it is an indicative that the company’s strategies should be reviewed.
5. Customer Effort Score
This metric identifies the level of customer difficulty to solve a problem. After all, even when the product and the service have good quality, it is impossible to not have some complaints, doubts or questions.
Thus, in order to calculate the index, the following question needs to be asked to the client: “On a scale of 1 to 10, how difficult has it been to solve your problem?”. The closer it is to 1, the more efficient is the company service.
In this case, managers should guide the training of the agents to maintain the best possible level of service.
HOW CAN TECHNOLOGY HELP YOU MANAGE YOUR CUSTOMER RELATIONSHIP?
So that you understand the metrics and make a more efficient usage of the customer relationship management, technology is a great ally. That is because it is essential that you have the tools to recollect and process the data in order to generate business intelligence.
OlosChannel, for example, is an Omnichannel platform that can develop thorough reports. Moreover, it helps mapping customer journey and path to purchase, adding relevant information and generating unified reports on each of the available service channels.
Focusing on customer service, this solution can be the great differentiator that your company can offer to your customers, providing them always the best possible experience in customer service. With numerous features, such as dialer, IVR, digital agent, among others, OlosChannel is a perfect solution to build a better relationship with customers.
Do you want to know more about how this tool can improve your strategy and increase customer retention? Contact us and request a demonstration.