The rationale behind building a business, as you probably already know, is to build a product that customers find useful, and make a profit building that product. As a matter of fact, worldwide economy is built around little transactions between customers who make up industries or markets. What this means is that if you do not provide your customers with the best service available, you’ll risk going out of business. Hard truths.
Every genuine entrepreneur understands this. However, many focus so much on other metrics to calculate their marketing success that they forget to include customer satisfaction in their plans. Many of them are unaware of the importance of customer loyalty and how much of a difference customer service excellence can make on improving your business revenue.
Since customer satisfaction should always come first, you should focus on a few key performance indicators (KPIs) to make customer service excellence easy to attain. Let’s study five of them:
Net Promoter Score (NPS)
NPS is a great test of customer loyalty. You can measure how much of your current and previous customers would recommend your business to others. Happy customers generally have no problem recommending a product or service they like to others. As a matter of fact, many of them are quite enthusiastic to do so. If your net promoter score tells you that your customers will not recommend you to their friends, you might have an issue on your hands.
Here’s how NPS is calculated:
- You conduct a short survey for your customers asking a question like “On a scale of 0-10, how likely are you to recommend this business to your family, friends, business partners and other acquaintances?”
- When you get the results of the survey, break the answers into three groups: Detractors (people who chose 6 or lower), Passives (7 and 8) and Promoters (9 and 10). Get the percentage of these three groups.
- Subtract the percentage of detractors from that of promoters. If you have a value less than 0, then you have a big customer service issue to tackle.
Xeno offers you the possibility to set up NPS surveys. You’ll find this under Auto-messages, in the Surveys section. Of course, you’ll be able to access the results of each of your surveys to see where you fit in the customer satisfaction range.
First Response Time
Customers need to feel that they are your top priority, and they want their answers as quickly as possible. Most customers are not satisfied if they have to wait days to get an issue resolved or an answer to their question. Some customers can go as far as being outraged if they don’t get an instant response. As an entrepreneur who understands the importance of speed in keeping customers in this day and age, improving your first response time is key in improving your overall customer satisfaction.
Xeno understands the importance of speed in first response, and that is why it has one of the best live response software to communicate with customers in real time. Visit Xeno today and get started on getting your live response software active for better customer service.
Customer Satisfaction cannot be easily gauged but using a system than incorporates your brand engagement across all channels, as well as surveys and testimonials to determine how satisfied your customers are with your product and service can give you a clear picture of your customer satisfaction.
Testimonials are extremely important, and you should ask your customers for them. Why? Well, not only do they prove that you are efficient at your job, they help convince new leads to take a chance with you.
Customer Retention Rate
Customer retention rate is the opposite of churn rate, and is the numerical value for the percentage that has been retained by a business over a given period of time. There are various formulas for calculating customer retention rate, but each method will help you calculate the percentage of customers you were able to retain during a period of time.
Customer Lifetime Value (CLV)
The CLV of any customer is the average amount of money a customer will spend on your business throughout your relationship with that customer. This number is important because it helps you know how much time you should be investing into the retention of customers as opposed to the amount of time spent on the acquisition of new clients.
If you understand how much a customer is likely to pay throughout his relationship with you, you can then optimize your funnel and retargeting campaigns for customer service excellence and get happy customers in the process.
Customer Feedback is Top Priority
Without feedback, it is very difficult for businesses to improve and serve their customers the best way possible. For this reason, all businesses should focus on improving customer feedback, as a lot of metrics that help improvement relies on it. Listening to customers pays off in the long-run.
Xeno understands the importance of customer feedback in real time and offers a powerful customer communication tool, enabling you to take care of all aspects of your customer service. Get started today at Xeno and take your customer service to another level.