The perennial cry from CEOs around the globe is that they are focused on their customers. It’s their A-#1 mission. Everything emanates from understanding what customers need and want, and then delivering on it. However, without up-to-date information trending profitable versus non-profitable customers and the issues driving the best customers away, CEOs and their businesses are unable to manage customers as assets.
They say that creating the *right* KPI is an art. And they also say that if you create the wrong KPI you can do your business more harm than good. Asking your organization these five questions will point you down the path of finding the RIGHT KPI.
Jeannie Bliss has a great post on this topic over on CustomerThink.com. Here are the questions she poses:
1. What Are Our New Customers; Volume and Value?
Ask about the volume and value of your incoming customers as often as you ask about sales goals.
2. What Are Our Lost Customers; Volume, Value and Reasons?
You must reconcile “Customers In” with “Customers Out” to know how well you are doing with managing customers as an asset of your company.
3. What Customers Renewed, at What Rate and Why?
The key is to understand patterns which indicate loyalty based on continuous purchase habits.
4. What is Our Revenue and Profitability by Customer Group?
Put your efforts into actions that cause your costliest customer groups to decline and those most profitable to grow.
5. What is Our Referral Rate by Customer Segment?
If your customers are willing to stick their necks out vouching for you, they have become your marketers.
See the full article on www.customerthink.com