Customer success is essential for any company. Whenever you seek a service that exceeds the customer's expectations, in addition to returning, that person will probably recommend your company to others.
Measuring customer success is a great way to get a feel for how strong your business is in the eyes of your customers. In other words, it means measuring whether you are actually delivering what you set out to deliver.
What are the key performance indicators to measure customer success?
NPS: Net Promoter Score
The Net Promoter Score was created by Fred Reichheld in the USA in 2003 to be just a research project, but it has become a method used worldwide for being practical and efficient in focusing on the user experience to measure the degree of customer satisfaction, loyalty and success.
The NPS application method consists of asking the customer the following question: “On a scale of 0 to 10, how likely would you be to recommend our store to a friend or family member?” Answers from 0 to 6 indicate the group of detractors. Scores between 7 and 8 are neutral people, while 9 and 10 indicate the so-called “promoters”. Then follow the formula:
NPS = Percentage of promoters – Percentage of detractors.
For good performance, it is recommended that the index be as high as possible. Remember that the calculation involves a large number of customers, which helps to have an overall view.
Read also: How to structure a satisfaction survey within your company
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue, often referred to as MRR, is probably the most important metric for any subscription business. Measuring customer success is therefore about measuring the viability of products, infrastructure, plans.
MRR is intended to measure how much I am ireland business fax list earning monthly from each client. The calculation formula is as shown below:
Total monthly receipt
Total customers
If your product does not offer the opportunity for upsell or cross-sell, the calculation is very simple.
CRC
CRC, better known as Customer Retention Cost. It is historically known that acquiring a new customer is much more expensive than retaining one. However, customer retention also involves costs.
The purpose of this index is to measure how much the company spends to retain customers. Make a comparison between the amount invested in customer retention and the profit it brings.
CSAT
The acronym stands for Customer Satisfaction Score, which is a metric used to measure immediate customer satisfaction. It consists of asking the customer what score they would give the work performed on a scale of 1 to 5. This analysis can be done individually or in general, using an average.
Churn
Churn is the rate at which a customer cancels services with a company, and should be monitored closely as it is an important indicator. If the customer is not satisfied
with the services offered, it is likely that he will cancel.
Customer retention has a direct impact on revenue growth due to three factors:
There is no need for new customers to “make up” for losses
'Fatten' the account through upselling, cross-selling and down-selling
Generate new opportunities from referrals
To calculate this rate, simply take the difference between the active contracts in a period and the total number of cancellations.
Upsell rate
Upselling is a strategy that aims to lead the customer to a more complete product or service than the current one and consequently of higher value. This strategy aims to increase the company's revenue and average ticket by offering a more advantageous option for both parties.
This is an important satisfaction metric, because after all, no one will renew or upgrade services with someone they are not satisfied with. To calculate this indicator, use the formula:
Upsell Rate = (Upsell Conversions / Total Conversions) x 100.
Ideally, this indicator should be high. But be careful, if it is too close to 100%, it may be an indication that the business is not attracting new customers.
Cross sell rate
Cross-sell is the sale of products or services related and complementary to the initial solution. Cross-sell indicates that the initial experience was positive and is given by the formula:
Cross sell rate = (Cross sell conversions / Total conversions) x 100.
CES
The Customer Effort Score (CES) is a metric that assesses how much effort a customer needs to make to resolve a problem.
The assessment is qualitative and is done using a simple method: simply ask “on a scale of 1 to 10, how difficult was it to solve a problem?”. Ideally, the maximum number of scores should be as close to 1 as possible.
Measuring customer success is very important to monitor the company’s performance. But with the right tool, everything becomes much easier.
That's why today, I'm going to introduce you to RA Trustvox and show you that it's possible to monitor all of your customer's success and even expose it to the world, thus transforming your customer's voice into the voice of your brand.
RA Trustvox the complete tool
RA Trustvox is a complete tool for your e-commerce, it delivers much more than just collecting reviews, it moderates, publishes, issues a true review certificate and has a control panel with a wealth of data to generate insights about your business.
Read also: Trustvox RA functions that help you gain customer trust
The control panel has functions such as:
Product Review
With RA Trustvox, you can publish your reviews on your e-commerce and on Google , which not only proves the quality of your products, but also generates social proof, that is, your customer's reports become the voice of your brand. This strategy, in addition to helping to resolve possible doubts, increases your sales and customer satisfaction.
Brand/Company Evaluation
When buying from a store for the first time, there are many fears and objections that appear in the consumer's mind, such as fear of not receiving the goods, fear of not meeting the delivery deadline or insecurity about the after-sales process in the event of a problem.
However, when analyzing other consumers' reports, consumers feel safer and more confident in making their purchasing decision. And with RA Trustvox, your brand can easily solve this problem. You will be able to display recommendations from people who have already purchased from you, in your store and even on Reclame AQUI, thus generating new conversions and building online authority to evolve your business.
Questions and answers
With the Questions and Answers function, you can resolve all your customer's doubts during the purchasing journey and purchase decision:
Interact assertively with your audience
Show more transparency and trust during the customer experience
Improve your brand loyalty strategies.
NPS and Reports
If you don't have a satisfaction survey program yet , you're missing out on a huge opportunity to improve customer experience and success, gain insights, and improve your processes.
Implement the best customer success methodology in your company, the Net Promoter Score, and measure your consumers' loyalty in a simple and automated way.
Additionally, extract lean data and reports on your customers' evaluations and orders, check points for improvement and be assertive in achieving your goals.
But it doesn't stop there, RA Trustvox has many other features that can help your business succeed. Click here and discover a world of possibilities.