Top 5 Customer KPIs for Business
Discover the top 5 customer Key Performance Indicators (KPIs) for businesses. Learn how to measure reach, customer satisfaction, profitability, retention, and market share to improve overall performance.
Top 5 Customer KPIs for Business
Topics
- customer KPIs
- reach
- customer satisfaction
- profitability
- customer retention
Video summary
In this video, the speaker discusses the five best customer Key Performance Indicators (KPIs) that every company should be measuring. The first important KPI is reach, which refers to whether people are aware of your brand. The next KPI is customer satisfaction, which can be measured through metrics like net promoter score and engagement levels. The third KPI is profitability, as understanding where your profits are coming from is crucial. The fourth KPI is customer retention, specifically focusing on retaining profitable customers. Lastly, the speaker emphasizes the importance of measuring market share and how your product and brand compare to competitors. If you want to learn more, you can subscribe to the speaker's channel or visit their website for additional articles and insights on KPIs.
Video transcript
let's look at the five best customer
kpis
every company should be measuring
[Music]
i help companies monitor and measure
performance so that they make sure that
they deliver on their strategic goals
and what i want to do here is look at
the most
important customer kpis what is really
important is that we don't get caught up
in the numbers
and always remember that behind every
number is a
real person so let's look at some of the
top kpis here
the first area you want to measure is
are you actually attracting customers so
you want to look at your reach
are people aware of your brand are you
converting them so your online presence
your brand
awareness things like this that's the
starting point
once you've attracted your customers you
need to make sure that they are happy
so here we want to monitor our customers
responding to your product and service
as well
things like net promoter score are good
engagement levels are good are they
using your product are you getting
feedback are you getting likes things
like that
now you have happy customers what we
need to make sure is that they are
profitable
in the end this is why you are in
business what we need to understand
is where is our profit coming from it is
not unusual that actually the vast
majority sometimes
80 percent of your profits are coming
from just 20
of those customers so understanding this
is another really important customer kpi
so now we have profitable customers how
do we keep them so we need to monitor
retention churn rates and especially of
those customers that are really
profitable
and the final one is to look at how
successful you are
in the market so here you want to
measure your market share
and in particular your relative market
share so how does your product and your
brand compare with your competitors
so here you have it the five really
important customer kpis
if you want to learn more subscribe to
this channel or head to my website at
burnadmar.com where you can find
hundreds of articles
and a kpi library to give you more
insight on this
Dig Deeper
The Five Most Important Customer KPIs Every Company Should Measure
As a marketing specialist, it is crucial to understand the key performance indicators (KPIs) that help monitor and measure a company's performance in delivering on its strategic goals. However, it is essential to remember that behind every number is a real person. Let's dive into the five most important customer KPIs.
1. Reach and Brand Awareness
The first area to measure is how well you are attracting customers. Analyze your reach to determine if people are aware of your brand. This includes assessing your online presence and brand awareness. It's important to track how many potential customers you are converting through various channels.
2. Customer Satisfaction and Engagement
Once you have attracted customers, it is crucial to ensure their satisfaction. Monitor how your customers are responding to your product or service. Net Promoter Score (NPS) can be a helpful metric to gauge customer satisfaction. Additionally, track engagement levels and whether customers are actively using your product. Collecting feedback and measuring positive interactions such as likes and shares are valuable indicators of customer engagement.
3. Profitability
In the end, profitability is the driving force behind every business. Analyzing where your profits originate is vital. It is common for a majority, sometimes 80%, of your profits to stem from just 20% of your customers. Understanding this customer segment helps prioritize efforts and allocate resources effectively.
4. Customer Retention
Retaining customers, especially highly profitable ones, is crucial for long-term success. Monitor customer churn rates to identify potential issues and devise strategies to retain customers. Building strong relationships and providing exceptional customer support are key in reducing churn and increasing customer loyalty.
5. Market Share and Competitive Analysis
Lastly, assess how successful you are in the market by measuring your market share. Understanding your relative market share compared to competitors is crucial. Knowing where your product and brand stand in relation to the competition helps identify areas for improvement and ensures you stay ahead in the market.
In conclusion, measuring and monitoring these five important customer KPIs are essential for any company. By focusing on reach, customer satisfaction, profitability, retention, and market share, you will gain valuable insights to guide your marketing strategies and improve overall business performance.
If you want to learn more about customer KPIs, consider subscribing to our channel or visiting our website at burnadmar.com. Our KPI library and hundreds of articles provide further insights on this topic.
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