The almighty dollar. It’s difficult to compete with the metrics surrounding it.
But the only dollar we’ve ever earned is from a customer. And if the customer isn’t happy, then that dollar stays put. Determining what customer-centric performance metrics you track for your organization, especially as you grow, can determine if you will improve your customer experience or leave it to chance.
These are the basic ways to measure business performance.
1. ROI – are we getting the return on this investment?
But how do you measure return? Return on engagement has been a hot topic regarding social media strategies, but what does that really mean? Some ROI is easy to track, but much of it is more obtuse. The important, customer-centric question to ask yourself is: is this really serving the customer?
2. Referral Counts
Do your customers and clients refer you to others? This is the basis for one of the most revered metrics in customer experience – NPS. Net Promoter Score is all about the one question: Would you refer us to others? If you are a growing business, track the number of referrals you’re getting and do what you need to move the needle for your current customers.
3. Random Kudos
Have you ever been so grateful as a customer that you’ve gone out of your way to compliment the person in charge? Doesn’t it feel good to tell the restaurant manager that the young server you had made your night that much better? It goes a long way. Don’t just enjoy those moments as a moment – track them and praise the person responsible publicly, then look for best practices to train!
4. Cancelations or Disappearing Customers
Relying on loyal customers is great…until they disappear without a trace. Have you seen a pattern of customers leaving you at certain key moment in the customer journey or after a specific amount of time? You won’t know unless you actually watch this as a trackable metric. If they were your best customers – the ones you know by name – it gives you a chance to pick up the phone and see if you can do something to keep them. I’m amazed when this simple step is overlooked. In the best case, you’ll gain back a loyal customer. In the worst case, you’ll get valuable feedback to help you grow your business.
5. Employee Retention
Employees stay where they feel valued and where they know they can grow. The only way to truly deliver a superior customer experience is to have top-notch employees. A classic example of how NOT to treat people was part of the Amy’s Baking Company Kitchen Nightmares saga. On that show, they spoke of how difficult it was to find good people, a classic complaint of those not willing to accept their role in the company culture. Track your employee retention rate and better yet – watch for how your employees refer other employees to you. Friends don’t let friends come to work at crappy places!
Are you ready to add some metrics to your business strategy? Paying attention to these can help you grow in the right way – by treating your customers and employees like the incredibly valuable assets they are.