"A useful metric is both accurate (in that it measures what it says it measures) and aligned with your goals.
Don't measure anything unless the data helps you make a better decision or change your actions."
~ Seth Godin
The art of designing measurement is being able to define the attributes of a specific event or element that can be used to compare with other events or elements.
A typical organization tracks hundreds of KPIs, generally within specific departments or teams. By and large they are not connected to the corporate-level KPI, which creates conflict in company-wide prioritization and direction. Organizations with customer-centric decision-making have a system that works to align their KPIs across the company, including a focus on loyalty metrics (e.g., Customer Lifetime Value and Double Blend NPS benchmark.)
Customer loyalty is the result of consistently meeting and exceeding customer expectations. Customers that trust the companies they do business with will be more likely to purchase from them again in the future.
Customer Lifetime Value: demonstrates the total revenue a customer will bring to your business throughout their entire time as a paying customer.
Another loyalty metric is share of the wallet (SOW) and repurchase, which demonstrate how much a customer spends on your brand over competing brands.
NET PROMOTER METRICS
These represent the likelihood to recommend your brand, product, or services. While there are many means of measuring this, the key ones are:
Relationship, episodic/ journey, and transactional / touchpoint NPS metrics address specific areas in the organization. They are diagnostic tools used to drive actions and ongoing improvements, and increase the main NPS benchmark metric.
The primary reason for the NPS score itself is to segment customers into three categories.
Based on data analysis, the value of promoters or detractors can be quantified. Promoters are 3X to 5X more likely to generate growth vs. detractors.
They measure the financial flow of revenue and the cost of doing business. Typical economic metrics include revenue, cost, profit, etc.
They measure the preference of a function, team, or task.
These include purchase habits, customer sentiment, customer satisfaction, trust index, empathy, and social influence index. Many of them are derived from qualitative data that is captured during customer interactions or getting customer feedback from structured or unstructured data.
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