Table of Contents
- What Are KPIs?
- 3 Categories of KPIs
- Types of KPIs
- Financial Indicators
- Quantitative Indicators
- Practical Indicators
- Input Indicators
- Directional Indicators
- Qualitative Indicators
- Output Indicators
- Leading Indicators
- Actionable Indicators
- Lagging Indicators
- Attracting New Buyers
- 1. Direct Traffic
- 2. Efficient Marketing Campaign
- 3. Visits Per Page and View Time
- Engaging Your Customers
- 4. Rate of Conversion
- 5. Customer Acquisition Rate
- 6. Rate of Cart Abandonment
- Retaining Clients
- 7. The Churn Rate
- 8. Customer Satisfaction Scores
- 9. NPS
- 10. Resolution Time
- Use the KPIs That Benefit Your Company
Today, more and more businesses are becoming more customer oriented to provide the best experience for them as possible. You should always strive to provide a positive customer experience (CX) since they are very important to growing your brand awareness. This is where having KPIs centered around the CX can help.
What Are KPIs?
KPIs are quantifiable and measurable metrics that help in monitoring the key objectives of any company. Every company creates a set of KPIs that are unique to them to monitor their key objectives and progress. Still, many companies are unable to determine the growth and fulfillment of their key objectives due to incorrectly using their KPIs. This is why it is important to know what you are measuring and how to measure them.
3 Categories of KPIs
KPIs can vary from company to company, and companies have created many different types of KPIs. The 3 major categories of CX KPIs are:
- Customer Attraction
- Customer Engagement
- Customer Retention
As the names suggest, these KPIs are based exclusively on the clients of the company. Their main purpose is to monitor how loyal and satisfied your clients are.
Types of KPIs
Some of the major and most used types of KPIs include:
These are the most widely used KPIs by companies. Financial indicators help determine the company’s growth and performance while taking into account the operating costs and monitoring the financial statements.
Quantitative indicators can provide the company with numbers and stats to measure growth and tell whether the company’s key objectives are being fulfilled.
The practical indicators are the type of indicators incorporated with the company’s existing processes. This means that the practical indicators mainly focus on measuring factors that are unique to the company.
The input indicators are those indicators that mainly focus on all the revenue that has been invested in the company and measure the turnover rate. These indicators focus on analyzing how much investment is being made to get an output from the company.
The directional indicators help determine the direction in which the company is heading, whether the company is doing good in terms of revenue or not. These indicators can help a company plan according to what trajectory they are going.
The qualitative indicators do not need numbers and stats to monitor the company’s growth, but rather the more qualitative aspects of the company. Some aspects of a company cannot be measured in numbers such as how effective the company has been for the community. Do not just focus on the numbers, but also focus on how people see you and what you are doing to keep your buyers happy.
The output indicators mainly focus on the turnover rate and outputs of the company. These indicators mainly track how much work is done and the return on investment from that work .
The leading indicators are based on predicting and making estimates about the future outcomes of the processes of the company.
The actionable indicators pertain exclusively to all the actions that are taken by the company. These actions help shape the company’s environment and generate revenue. Actionable indicators are mainly based on employee performance since they are the ones responsible for what actions are being taken.
The lagging indicators can only become apparent after the company faces a large shift. These indicators, unlike leading indicators, do not predict the company’s future outcomes, but help determine the direction in which the company is headed after facing a large shift. Leading indicators often provide outcomes prone to change based on the circumstances, and the lagging indicators help regulate the long-term trends.
Attracting New Buyers
The first and foremost key objective of any company is to try to get people to buy their goods and services. No one can run a company without new buyers. This is where the following KPIs can help you:
1. Direct Traffic
Direct traffic refers to the number of people that visit the company’s website. Tracking direct traffic is vital because it helps determine whether the company’s interactions are increasing. It can also help determine what made people engage with the company more.
With the use of social media platforms, many businesses can advertise and launch new campaigns and measure the response accordingly. Direct traffic helps determine whether the company’s campaigns are attracting people or if they need to reevaluate their strategy.
2. Efficient Marketing Campaign
Nowadays, marketing campaigns are based less on the company, and more on their client’s needs. Companies that pay heed to their client’s wants and needs are the ones at the top of providing a great CX. It is important to keep in mind that whatever campaign a company chooses to go with, that the clients feel heard and acknowledged.
3. Visits Per Page and View Time
This KPI is one of the more frequently used by companies. The number of visits a website gets and the time a person spends on that website can be a useful tool to determine their audiences’ interest in that company’s products and services. If they spend more time on the website, it can mean that they are interested in learning more about the company which means a potential lead.
Some people also say that time spent on a website can be a negative indicator on how long somebody is navigating a website. If they are confused with how to navigate your website, they might spend more time going through it than needed. In this case, you would want to edit your website to where your potential lead can easily navigate your website.
Engaging Your Customers
Engaging your audience describes the connection between you and your audience. Customers like to be properly engaged and have their needs met. You have to always strive to provide a positive CX. Try to use the following KPIs to evaluate your customer engagement:
4. Rate of Conversion
The conversion rate can be boosted by making changes to your website, the easier the buying process is for the consumer, the more likely they are to buy from the same website again. Try to make a layout that is aesthetically pleasing and easy to follow. You can also add chatbots and a blog to your website to help answer their questions as well as educate them.
5. Customer Acquisition Rate
The customer acquisition rate helps determine whether the advertisements and marketing campaigns are yielding any sort of return in terms of new customers gained. If not many new clients are gained, it might be time to reevaluate your strategy.
6. Rate of Cart Abandonment
The average cart abandonment rate is estimated to be at about 68%. This can indicate a poor CX as well as people finding better services elsewhere. There are many reasons for buyers abandoning their carts. One of the most common reasons is that the website is not efficient enough. Try to make some small changes to your webpage to provide a more pleasant CX so that they will not abandon their carts as much.
The next step after gaining new clients is to retain them with your services and products. These KPIs can help determine whether your clients are satisfied with your company:
7. The Churn Rate
The churn rate refers to the number of people who stop purchasing or using your service after one time. If a business gains a lot of new customers, but fails to retain them, it will be seen as bad business.
8. Customer Satisfaction Scores
Having high CSAT or customer satisfaction scores is a major goal any business should try and reach. CSAT represents how many people are satisfied with your services and products. If people are not satisfied with your company’s goods and services, that can negatively impact your CSAT scores. Try to provide the best CX as possible in every step of the buyer’s journey.
NPS means net promoter score, which helps in understanding how the company is being viewed and their reputation in the eyes of the public. Having a low NPS means that they are not satisfied with the company and having a high NPS means they are satisfied with what you are doing.
10. Resolution Time
Resolution time refers to the time taken by the company to resolve the issues of their clients. The average time taken from a client reporting an issue to the agent solving the problem is the resolution time. It is best to resolve any client issues as soon as you can because the longer you put off the issue, the more likely the client will have a complaint about your company.
Use the KPIs That Benefit Your Company
Although there are many KPIs that can be adopted by any company, there is still no hard and fast rule that can be applied to every company that promises the same outcomes. In the end, it is better to design KPIs that suit your company best and apply them in your future customer experience strategy.