Here at xAmplifier, we want to help you best serve your customers’ needs in order to effectively expand your business. Satisfied customers are essential to your company’s growth and sustainability.
That’s why this week, we’ll offer you the most important key performance indicators (KPIs) to look out for when you survey your customers. Understanding these metrics will allow you to figure out what makes your customers tick in order to better cater to their needs.
Customer-bound surveys tend to have an overall satisfaction question, collected on a 5, 7, or 10 point scale, ranging from extremely satisfied to extremely dissatisfied. A great barometer of your business’ performance is the percentage of customers who rate their experience as “extremely” or “very satisfied.” Determine the cause of these customers’ satisfaction in order to cater to the needs of your overall customer base.
You should also focus on ensuring that your customer satisfaction KPI is constantly on the rise. For example, you can repeat the same customer satisfaction survey to measure the new results against the old. You can then set goals and target problem areas in order to improve your customer satisfaction rating.
Net Promoter Score (NPS)
NPS is a dedicated customer satisfaction index that measures the number of customers who like your company brand enough to recommend it to others. The index divides customers into three categories: promoters or customers likely to recommend your brand, passives or customers on the fence, and detractors, those customers least likely to recommend your company.
If more customers recommend your brand than not, your NPS is positive. If equal numbers recommend and do not recommend, then your NPS is neutral and you need to work to push your score into the positive. If more customers fail to recommend than recommend, you need to find out why your score is in the negative.
Referrals are essential to the success of your business, as they are your best form of advertising especially if they’re free. Create an NPS survey, asking customers whether they would recommend your company to a friend, to determine where you rank.
External vs. Internal Benchmarking
External benchmarking involves comparing a number of metrics within your company to a competitor of a similar size, market, or product, while internal benchmarking compares various divisions within your company to one another to identify one division’s businesses practices that you can extend throughout the company. Both are powerful measures, but each are used to push your business to improve in different ways.
Internal benchmarking is a great way to establish standards across a larger operation and discover both your super stars as well as any weak links. By using the same survey, question, or poll, you have an objective measure to create a baseline across different locations, departments, or even employees. From there you can find your average performance scores then evaluate each segment above or below that line. Reward star performers and investigate their practices to find the key factors driving their success. Then try to teach or apply the same strategies to segments that may be struggling to raise your overall satisfaction levels. Just make sure these comparisons are discrete and constructive to avoid building unhealthy competition or resentment, especially among groups that are interdependent.
Each industry has its own unique customer base and set of challenges, so it’s often difficult to figure out where your business’ performance lands in the grander scheme of things. External benchmarks allow you to easily compare your operations to similar entities by industry, customer base, product type, price range, region, or just about any other relevant criteria. This is when broadly accepted measures like NPS and satisfaction percentages come in handy, as they provide simple measures that translate well across different companies. You can purchase industry data sets from xAmplifier or the NPS creators, Satmetrix, to get the scoop on your competitors, then set goals to meet or surpass their performance.
It’s important that you and your customers are on the same page when it comes to brand expectations. You can bridge the gap between your expectations and your customers’ by holding focus group discussions then sending a brand attributes survey questionnaire to better understand how your customers view your company.
During these focus group discussions, you should generate a list of parameters to include in the survey questionnaire. These parameters are attributes your brand needs to focus on to improve customer satisfaction performance and could include anything from responsiveness to accessibility to complaint or question handling.
You can then use the survey data to meet their expectations or change their brand image. As brand attribute perceptions align, your customer satisfaction will likely improve overall.
At xAmplifier, our goal is to provide you with unique and applicable content to solve your business’ problems. You can contact us at firstname.lastname@example.org or call 866.363.6434 to see what xAmplifier can do for you!