Tracking certain indicators is crucial for ensuring successful and profitable business operations. Along with financial indicators, such parameters as customer satisfaction and client retention play equally important roles in a company’s success. In this article, we’ll explore what metrics of customer communication should be closely monitored to ensure that the expectations of clients are steadily met and even exceeded.
What are customer metrics and their role?
Customer metrics are measurements used to assess a company’s success in terms of its customers. These metrics are essential indications that assist in monitoring customer interactions, identifying areas for possible improvements, and shaping a customer-centric strategy, in which the customer is at the center of all company decisions. With comprehensive data on customer indicators, businesses may make data-driven decisions and prioritize their efforts to achieve long-term success.
Essential customer metrics to track
Customer lifetime value (CLV). This metric predicts the total amount of money a customer is going to spend on a business’s products or services over the course of their interactions. CLV takes into account factors such as purchase history, frequency of purchases, average purchase value, and customer retention rate. It is an essential metric for businesses as it helps to determine the long-term profitability of every customer and to identify high-value customers who are worth investing in to retain their loyalty.
Customer acquisition cost (CAC). This indicator shows the sum of all expenses a company faces in its efforts to acquire a new customer. The importance of this metric is explained by its helpfulness in assessing the effectiveness of marketing and sales strategies of a company and calculating the return on investment for each customer. By comparing the acquisition cost of a customer with the revenue generated from them, businesses can make accurate decisions on adjusting marketing budget and approach to customer retention.
Churn rate. The metric determines the number of customers who ceased using a product or service offered by a company during a specific period. A high churn rate may signal issues with the product or service, inadequate customer support, or unsuccessful competition with rivals. The churn rate can be calculated by dividing the number of customers lost during a certain period by the total number of customers at the start of the period. Lowering the churn rate can be accomplished by enhancing the customer experience, providing promotions or discounts to retain customers, and addressing underlying issues with the product or service.
Number of customer conversations. This metric helps businesses determine the number of employees needed to process all incoming messages on time. It also helps identify peak hours when the highest number of inquiries comes in. By correctly distributing the workload, businesses can provide prompt responses and improve the customer experience.
Speed of first response. The time it takes for an operator to respond to the first message is critical. Studies show that the response should come within 1 minute; otherwise, the user is more likely to leave a website. By monitoring this metric, businesses can improve the average response time and prevent customer churn.
Average time to resolve the issue. This metric shows how long it takes for an operator to completely solve a customer’s question. Obviously, this figure can depend heavily on the complexity of inquiries so it is important to look at the indicator in dynamics: how it changes throughout weeks or months. Faster resolution of issues boosts customer satisfaction and reduces the likelihood of negative reviews.
Customer satisfaction rate. Measuring customer satisfaction is crucial for businesses. CSAT and CSI are popular metrics used to survey customers about the quality of service. While the assessment of each individual user is subjective, bringing the average can help evaluate the quality of communication and support work.
Missed chats. These are conversations that remain unanswered for a long time. When everything works as it should, there should be no such inquiries. However, when a company manages multiple customer communication channels, there is always a chance that some incoming inquiries might be missed.
Such an issue can be solved by employing an omnichannel messaging platform, like Umnico. It combines customer conversations from social media, instant messengers, and free live chat in a single easy-to-use interface. Customizable notifications that may be sent to an employee’s desktop, as well as smartphone, email, or Telegram, ensure there are no missed chats.
Summing things up
By tracking essential customer metrics, businesses can improve their customer service experience and achieve higher customer satisfaction and retention. Implementing solutions such as Umnico’s communication platform and integrating instant messengers with CRM systems can streamline communication and improve the overall customer experience.
