Is your client happy? 5 metrics to find out about it

How to improve customer relations is the main task that more and more modern companies want to solve. After all, their income depends on the level of Customer eXperience (CX) and whether the client will return to buy the product and service, whether he will recommend your company to his friends and family. In this article, we will share important information about what metrics can be used to "calculate" the level of customer happiness.

Important! Don't confuse a happy client with the one who comes back to you, as he doesn't think he has any other option.

Take care of the client's happiness. Happy customers do not just bring profit, they increase it, help the company to develop and become a leader in their industry.

1. Engagement is the main metric of promotion

If you think that the more followers your company has on social networks, the more people reach your posts or stories, then forget it. The concept of involvement includes a set of actions with content over a certain period.

Engagement metric is a promotion metric with which you will get a number indicating the number of user reactions to content. Engagement allows individual posts and entire sections of content to be assessed. This metric is measured using the ER (Engagement Rate).

ER means the entire set of user reactions in relation to one post (article, etc.) for an individual user or a period of time. Engagement is measured using metrics:

• likes on Youtube and shares are indicators of the popularity of content in social networks, confirming its virality. Shares are more important, as users confirm the interesting content with them and increase the reach;
• Mentions - mentioning your company in social networks and other resources. It is important to monitor the quality of the content, its mood and work out negativity in time;
• Comments - Indicates good engagement rates as the user took the time to comment.

2. CSAT for assessing satisfaction with a purchase / service

It is impossible to measure customer experience correctly without considering customer satisfaction with your products. You can measure satisfaction (customer happiness) using the Customer Satisfaction Score (CSAT). It is very important for business to measure CSAT and improve this indicator on the way to purchase.

CSAT is one of the most popular metrics, a popular CX metric that can be used to assess the quality of the product and service of any business. It includes metrics for product satisfaction (NPS) and customer journey convenience (CES). For this metric, user polls are used:

• here and now - immediately after he performed the target action, the question is asked whether the user is satisfied. For example, did the user like the checkout process, etc .;
• with a delay - after some time (annually or quarterly) survey users in order to constantly monitor respondent satisfaction.

CSAT is measured by answering the questions: "Rate the services of Company X's products? / Rate the usability of a particular scenario of Company X?" Instead of numbers, the user selects a certain number of stars or corresponding emoji.

Important! Don't confuse the arithmetic mean of all grades with the CSAT score.

“Normal” is a satisfaction indicator equal to or higher than 76.5%.

3. Contact Rate - the number of calls to the contact center per order

You can use the Contact Rate metric to determine the proportion of “calling” customers and analyze the dynamics of calls. It shows how many customers contact the contact center, and does not visit an office, retail outlet or solve their problems using an Internet resource.

You can use the Contact Rate metric to determine the proportion of “calling” customers and analyze the dynamics of calls.

4. Customer retention and churn rates

The Customer retention rate metric can be used to calculate the number of users who continue to use a service product after a certain period of time. Having determined the number of loyal customers, you can analyze the results of your retentino campaign. The indicator is used by a business that is based on repeated sales.

Customer churn rate is the opposite metric of Customer retention rate, which can be used to measure customer churn. The lower this indicator, the more customers the business needs to work with and retain them. In the first months, the churn rate is the highest, and then you can even out it for 4-5 months, using all possible methods to ensure a high-quality user experience.

To see the full picture of customer churn using these general formulas, you need to segment customers and calculate churn separately for each segment.

5. Referral rate to measure the effectiveness of the referral campaign

“... Depending on the specific methods, the system can be implemented at very low costs or even free of charge. With the right approach, of course, there is always some investment involved, but compared to the cost of traditional advertising, referral marketing provides the most effective return on time and money. "

John Jantsch

Trust in the company, increase in brand loyalty are more effective tools for attracting customers than advertising, because it is not always perceived as a reliable source. People trust the information they receive from other people better. This is the advantage of referral marketing, which promotes services and products with recommendations from real people.

A participant who spoke about the brand and attracted new customers receives bonuses or additional discounts from the company. To measure the performance of a referral program, the following metrics are used:

• Virality - how many customers came from one recommendation. Tracked using any analytics system. The best result is when the ratio is higher than 1.
• Conversion - the number of purchases in relation to the referred visitors. A good conversion result is considered an indicator above 20%.
• The number of users who came on the recommendation - allows you to assess the effectiveness of sites and customer interest.

Relevant for referral programs is the well-known Pareto law, when only 20% of the participants in the referral program bring 80% of all traffic. An effective referral program will be when you:

• present information is available;
• use a two-way referral marketing model;
• tie the client to the company, offering him additional discounts, promotions, accumulative bonus programs, etc.

By controlling these metrics and promoting systems, you can increase the number of customers. Ask our experts how to increase views on Youtube.

Conclusions

There are many frameworks and metrics that allow a marketer to draw high-quality conclusions for the further improvement of the company. They allow you to determine if you are heading in the right direction and set a time frame for achieving your goals. A metric is a coordinate system that brings clarity to a workflow. The selection of key metrics and their improvement is the main criterion for the effective work of the team.

In this article, we talked about the main metrics by which you will evaluate the result of your work. If customer feelings are important to you, and you need them, if you want to increase profits, then you need to forget about site traffic indicators, number of buyers, cart size and conversion rate. Since these indicators characterize your business, not your customers.