The more you know about your customers, the better you can serve them. Understanding your customers’ pain points, loyalties and circumstances can help you to target your strategies to perform better than ever before. You may have already read about setting up your customer engagement strategy, but in this article, we are looking at the key metrics to assist with this. These metrics will provide you with valuable insights and information into your customer’s lives and purchasing decisions so that you can improve your marketing efforts.
Net Promoter Score (NPS)
NPS is a useful metric for so many reasons, and it is vital for understanding your customers. This data will reveal how likely a customer is to recommend your business or products to friends and family. It is widely used by businesses of all sizes and across all industries because it can provide valuable information about how customers feel about your company. Gathering this data is easy, and all you need to do is ask customers how likely they are to recommend your business on a scale of one to 10.
Measuring customer engagement can help you to understand how your audience interacts with your business. Some consumers like to just make a purchase and go on their way, while others will be far more engaged. Customers with strong interactions with a brand are often more likely to be repeat purchasers. Tracking customer engagement can reveal how often they communicate with your business, how long they spend on your website, or how many pages on your site they click on.
Customer retention is critical for success. In fact, just a 5% increase in customer retention can improve profitability by 75%. Put simply, customer retention is how many clients purchase from your business for a second time. This can vary greatly depending on the nature of your business and the industry you operate within, but almost all companies will benefit from improving their customer retention rates. Understanding which customers are likely to come back again can help you to hone your remarketing efforts in the right areas.
Customer Effort Score (CES)
CES is a way of measuring how much effort it is for customers to interact with your business. Whether that is making a purchase, contacting your customer services team, or something else entirely. This metric is measured by asking consumers how much effort they had to put into complete various tasks with your brand. It is essential for understanding your customer’s friction points and can help you to work out what they need for a more seamless experience.
Customer Lifetime Value (CLV)
This metric demonstrates how valuable a customer is to your business over their lifetime. When you look at this information, you can quickly understand which customers are worth retaining and which are less valuable to your company. Using CLV to understand more about your customers can help you to see which marketing campaigns are effective and how you can improve your customer experience.
Customer Satisfaction (CSAT)
It is so important that you understand how satisfied your customers are with your service, products, and business in general. CSAT is a metric that measures exactly that. It looks at the average satisfaction rating of your customers. Most brands use CSAT to look at specific areas of the business, such as contacting customer service, completing a purchase, or how well a product is performing. CSAT is measured by surveying customers and asking them to rate their satisfaction using a scale from ‘not satisfied’ to ‘very satisfied’.
Tracking visitor intent can help you to understand the reasons why your customers are visiting your website. It delves a little deeper than metrics such as time spent on site or bounce rates and looks into their reason for visiting in the first place. From this information, you can gain an understanding of what your customers are looking for, which can help you to finetune your website in order to serve them better. Visitor intent can be captured using simple website surveys which ask visitors to choose an option that best describes the focus of their visit.
Cart Abandonment Rate
If you are operating an eCommerce business, then the cart abandonment rate is a very important metric to measure. If your customers are adding products to their cart and then not completing their purchase, it could indicate there is an issue with your online experience. Looking at your cart abandonment rate can help you to understand where in the buying journey customers are being put off, and from here you can make changes to fix it.
Using these metrics, you can gain a solid understanding of who your customers are and how they interact with your business. You will be able to identify the consumers who are most important to your brand, and spot opportunities for success in your online experience.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.