KPI in customer relationship, the new trend
Customer relationhip and customer experience are topics getting increasingly important in companies. It is in this context that KPI (Key Performance Indicators) are developing.
In an AMARC conference on KPI, Christophe Benavent stressed the lack of financial indicators and the need to take into account more qualitative elements, particularly those related to customers.
In the field of customer relationship and experience, KPI can:
- come from many sources: customer databases, audience and behavioural measurements, results of internal or external surveys…
- take many forms: waiting/response time, average processing time, customer satisfaction, claim rate, customer effort score (predictive power of re-purchase much higher than satisfaction and recommendation), NPS – Net promoter score, customer consultants satisfaction, turnover…
In view of this amount of KPIs, it is important to understand what makes a KPI a good indicator:
- Validity: it measures a gap between what was expected (the level of expectation) and what is achieved (perceived quality).
- Reliability: absence of bias, representative samples….
- Sensitivity: measurement of variations with sufficient precision
- Objectivity: independent measurement of the survey population
- Predictability: prediction of consequences. According to Christophe Benavent “a good KPI is not about measuring, it is about predicting.”
- Intelligibility: indicator that makes sense for users
In addition to these characteristics, there are also some key success factors:
- To have few KPIs….
- … which change regularly: they must be scalable as well as what they measure and therefore must not be static…
- … KPIs which are evaluated in causal models and whose effects are verified….
- … which create unanimity (none or weak internal opposition)
Do you want to evaluate and improve your customer relationship?
As customer relationship specialist, LDB Mica Research offers you its solutions adapted to your challenges. Contact us.
The LDB Mica Research team