When it comes to KPIs, revenue is usually number one. But how much weight should customer satisfaction carry? How do you measure this at your company?
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Sales Director6 months ago
Growth in revenue through new business is essential, however, repeat revenue is intrinsically linked to customer satisfaction, with sustained external advocacy being the goal. Advocacy and testimonials are KPI’s we track.CSO, CMO6 months ago
Exactly, Nadia. Lifetime Value, cross-sell / up-sell opportunities, and how CSAT is measured all play a part.
Senior - Business Analyst, Proposal & Bid Manager (North America, APAC, MENA, EMEA) I enjoy the roles that challenging and diverse. in Software6 months ago
Absolutely, I couldn't agree more. While new business is vital, repeat revenue hinges on customer satisfaction and advocacy. Tracking KPIs like advocacy and testimonials ensures we're on the right track. It's about nurturing relationships for sustained success. Thanks for highlighting this critical aspect of the strategy
CEO in Retail6 months ago
I personally would give customer satisfaction a very low ranking. My reason is this, You can do everything you possibly can for a customer. But in the end you cannot control how they respond to a survey. Our company used to weigh it in heavily and it cost us dearly in bonus payout. We hit every metric plus but yet fell short on customer satisfaction because of poor survey scores. And unfortunately, this is the one thing you cannot control. I believe that customer satisfaction should be monitored. But should not be bundled into the overall metrics of the store.Senior Consultant in Telecommunication6 months ago
The weight of customer satisfaction in KPIs varies based on industry, competitive landscape, and organizational goals. A customer satisfaction program gives invaluable insights to improve in critical areas of engagement with a client. The aim is not only to listen and hear what is working well, but also to understand client needs and concerns.A customer satisfaction program should answer to the following questions:
- How do we want to be perceived by our clients?
- Who do we want to be?
- How are we perceived today?
- Who are we today?
- Is there a gap between how we perceive ourselves and how clients perceive us?
- How can we ensure that the gap closes?
In my experience with a tech company, we regularly conducted an annual web-based survey to gather comprehensive customer feedback across various touch-points, known as Broad Performance Areas (BPAs). The survey spanned approximately four weeks, ensuring ample time for client responses. We meticulously managed the client contact list, collaborating with Key Account Managers to nominate participants. Clients were tasked with rating our company on these BPAs, offering insights into attributes like responsiveness and competence. Simultaneously, we requested clients to evaluate the same BPAs for a closest competitor, allowing us to benchmark internally and externally. The resulting Customer Satisfaction Index (CSI) was pivotal, reflecting client perception and behavior, thereby impacting our orders and revenue. This Customer Satisfaction framework was instrumental in understanding the client experience and evaluating our competitiveness against industry rivals.
Typical KPI we measured were: Customer Support Deliverables, Business Partner, Value for Money, Brand Image, Thinking of the Future, Recommendation.
And a structured process we used was: Preparation, Survey, Results, Analysis, Design and Handshake an Improvement Plan and Follow-up of the Improvement Plan.
All resulting eventually into an Enhanced Customer Experience.
Director of Sales6 months ago
If customer satisfaction equates to retaining the customer, it should be weighed heavily. We are looking at retention and growth of each client as a measure of success. It costs a lot less to keep a customer then to find a new one. Managing Partner in Software6 months ago
Customer satisfaction is one of the leading indicators, which is ultimately measured in revenue, which is a lagging indicator.It should carry a good amount of weight, but numerous factors go into measuring it, including NPS, NRR, CSM feedback, and renewal rates. That is the challenge. The fact that there are many inputs and everyone curates those differently.