KPIs for CX
Acronym | Stands For | Meaning | How does it work | Usage |
CLV | Customer Lifetime Value (CLV) | CLV is a projection of the amount of revenue a single customer will generate for a business over the duration of time they remain a customer | Increases in customer lifetime value lead to increased customer retention, more revenue generated per customer, and less marketing dollars spent attracting new customers. | ㅤ |
CAC | Customer Acquisition Cost (CAC) | CAC is the amount of money spent to acquire a new customer. | A study by American Express showed that on average one happy customer can equal nine referrals for your business. Take a look at CAC compared to CLV. If CAC is much higher, think about how to increase the value of the interactions that occur after a customer has been acquired, rather than the effort it takes to acquire a new one. | ㅤ |
CVR | Conversion Rate | The percentage of total visitors or prospective transactions who end up completing a sale. | Customers want the buying experience to be easy, the more effort required on their end, the less likely they are to convert. | ㅤ |
Up-Sell and Cross-Sell Rate | Up-Sell and Cross-Sell Rate | The percentage of people who purchase an add-on or upgrade to a product or service. An Up-Sell refers to a sale that is more expensive than the customer originally intended on purchasing, whereas a Cross-Sell refers to the sale of a different product or service to an existing customer. | Customers who have a better experience spend more with a company. A Forrester report says customers who have a high-quality experience are 3.6 times more likely to buy additional products and services from a brand. | ㅤ |
AOV | Average Order Value (AOV) | AOV is the average amount a customer spends in a specific customer group when purchasing a product or service. | AOV has a clear impact on the bottom line as an increase or decrease directly affects revenue and business growth. To increase AOV, businesses need to find more ways to generate valuable experiences by having a clear view of what matters most to customers. | ㅤ |
ARPC | Average Revenue per Customer | ARPC is the number of sales generated per customer during a specific period. | Similar to AOV, ARPC is a clear indicator of how much value each customer provides to a business, and how much that value is growing overtime. | ㅤ |
NPS | Net Promoter Score | NPS is a customer feedback tool that measures client satisfaction and loyalty to a brand. NPS data is gathered through a scaled survey question and measured on a scale of -100 to +100. | Promoters are customers who are devoted to a brand; they are the bread and butter of a business. Passives are often happy customers but are indifferent to the products or services and less loyal than promoters. Detractors are customers who are not satisfied and will likely not remain long-term. | ㅤ |
CCR | Customer Churn Rate | The percentage of customers who do not return to a company after making a purchase either by not making a repeat purchase or by canceling their service during a specific period. | Customer churn can mean the percentage of customers who don’t return to a business, people who unsubsubscribe from an email list, or unfollows on social media. | ㅤ |
CRR | Customer Retention Rate | The percentage of customers who remain with a company over a period. | Similar to customer churn rate, customer retention is extremely valuable for company growth. Research indicates that a 5% increase in customer retention can increase company revenue by 25-95%. | ㅤ |
PRT | Problem Resolution Time | The average amount of interactions it takes between customer and company to resolve an issue. | Assess how many interactions are necessary to resolve a customer issue and then compare that to the current PRT. If the amount of interactions far exceeds the appropriate amount of time, customers are likely encountering difficulty along their way. | ㅤ |
FRT | First Response Time | The average amount of time between when a customer submits a case and the time customer support responds (generally measured in minutes during business hours). | According to a CX impact report, 50 percent of consumers give a brand only one week to respond to a question before they stop doing business with them. This is why it is critical for organizations to solve customer problems in a quick and sincere manner. | ㅤ |
CPA | Cost per Interaction / Activity | The business cost required to process or handle a given item. Might be a call, contact, interaction, order, click, etc | If the efficiency in which customer problems are handled improves, the time it takes to handle a customer problem will likely go down, and the cost associated to that interaction will also go down. * | ㅤ |
FCR | First Contact Resolution Rate | The percentage of customers whose question or request is resolved on the first attempt. Typically measured through a post-interaction survey asking the customer if their issue has been resolved. | A CX impact reports indicates that 89% of customers get frustrated because they need to repeat their issues to multiple representatives. This frustration can escalate to a lost customer. | ㅤ |
KPI Baselines
Acronym | Stands For | Meaning | How does it work | Usage | Often confused with |
KPI | Key Performance Indicator under categorical KPIs:
• Strategic KPIs
• Operational KPIs
• Functional KPIs
• Leading/Lagging KPIs | • Key performance indicators (KPIs) measure a company's success versus a set of targets, objectives, or industry peers.
• KPIs can be financial, including net profit (or the bottom line, gross profit margin), revenues minus certain expenses, or the current ratio (liquidity and cash availability).
• Customer-focused KPIs generally center on per-customer efficiency, customer satisfaction, and customer retention.
• Process-focused KPIs aim to measure and monitor operational performance across the organization.
• Generally speaking, businesses measure and track KPIs through business analytics software and reporting tools. | Metrics depend on types of KPIs:
• Financial Metrics
• Customer Metrics
• Process Performance Metrics
• Marketing
• IT
• Sales
• Staffing | Customer Metrics
Customer-focused KPIs generally center on per-customer efficiency, customer satisfaction, and customer retention. These metrics are used by customer service teams to better understand the service that customers have been receiving. Examples of customer-centric metrics include:
• Number of New Ticket Requests: This KPI counts customer service requests measures how many new and open issues customer are having.
• Number of Resolved Tickets: This KPI counts the number of requests that have been successfully taken care of. By comparing the number of requests to the number of resolutions, a company can assess its success rate in getting through customer requests.
• Average Resolution Time: This KPI is the average amount of time needed to help a customer with an issue. Companies may choose to segment average resolution time across different requests (i.e. technical issue requests vs. new account requests).
• Average Response Time: This KPI is the average amount of time needed for a customer service agent to first connect with a customer after the customer has submit a request. Though the initial agent may not have the knowledge or expertise to provide a solution, a company may value decreasing the time a customer is waiting for any help.
• Top Customer Service Agent: This KPI is a combination of any metric above cross-referenced by customer service representatives. For example, in addition to analyzing company-wide average response time, a company can analyze who the three fastest responders are and who the three slowest responders are.
• Type of Request: This KPI is a count of the different types of requests. This KPI can help a company better understand the problems a customer may have (i.e. the company's website gave incorrect or inaccurate direction) that need to be resolved by the company.
• Customer Satisfaction Rating: This KPI is a vague measurement, though companies may perform surveys or post-interaction questionnaires to gather additional information on the customer's experience. | • “metrics”
• OKR |
ROI | Return of Investment | A calculation of the monetary value of an investment versus its cost. The ROI formula is: (profit minus cost) / cost. If you made $10,000 from a $1,000 effort, your return on investment (ROI) would be 0.9, or 90%. | ㅤ | ㅤ | ㅤ |
CEM | Customer experience management | the practice of creating personalized interactions across physical and digital touchpoints. | ㅤ | ㅤ | ㅤ |
Metrics Measure Customer Satisfaction
Acronym | Stands For | Meaning | How does it Work | Usage | Often confused with |
CX | Customer Experience | An accurate CX definition describes customer experience as the way consumers perceive how your brand interacts and treats them. That perception has the potential to influence the way people feel about your business, and how likely they are to do business with you and talk positively about your brand. | ㅤ | ㅤ | • Customer Service
• Customer Support |
NPS | Net Promoter Score® | a growth indicator metric that helps you find out:
• How satisfied consumers are with your products/services;
• How loyal they are to your brand;
• How likely customers are to recommend your company to others. | NPS surveys are short and easy and can be sent during any stage of the customer lifecycle, by various survey channels – email, web, text messages, etc. For example, an NPS question can be triggered to pop up:
• After a customer makes a purchase or tries your product;
• After a client contacts your support team;
• When a user takes a certain action on your website;
• Whenever you want to see how your relationship with your clients is going;
• Before a meeting with a client comes up; or
• A few weeks before a long-term subscription is nearing its end. | NPS surveys feature one question that asks consumers how likely they are to recommend your products, services, or brand to other people. Here’s an example:“How likely are you to recommend our company to a friend or colleague?” | • CSAT |
CSAT | Customer Satisfaction Score | a CX metric that directly measures customer satisfaction levels in the format of surveys asking clients how satisfied they are with a certain service, product, or interaction with your brand. | CSAT surveys are ideally sent when you want to see how happy clients are with an action your business took, or certain aspects of your products/services.
For instance, you can send a CSAT survey after a client has completed the onboarding process to see how efficient it is and if any improvements are necessary. | CSAT surveys normally feature a question asking clients how satisfied they are with a certain service, product, or interaction with your brand. Here’s an example of a CSAT question:“How would you rate your overall satisfaction with the service you received? | • NPS |
CES | Customer Effort Score (CES) | a metric that’s used to measure customer satisfaction levels by focusing on the efforts customers make to interact with your business’ services and products to help you find out if customers have a hard time performing certain actions when interacting with your brand, and take the necessary actions according to the survey data to streamline processes. | CES surveys are usually used:
• Right after a client interacted with customer support
• Immediately after a customer interacted with a product/service and made a purchase/got a subscription
• Whenever a business wants to measure the overall experience consumers have with their products/services | CES surveys generally use a single question to ask clients how easy or difficult it is to perform a certain action – whether it is getting help from the support team, buying a product, or leaving a review.
For example, this is the kind of question CES surveys can use:“How easy was it to complete your order online?”
The collected customer feedback is then analyzed to find the average. | ㅤ |
Knowledge
Acronym | Stands For | Meaning | How does it work | Usage | Often confused with |
ERP | Enterprise Resource Planning | composed of several small modules and is designed to manage the entire enterprise. As one of the smaller modules can replace a system for storing, accounting, finance, supply management, etc. All these modules are connected to a single database, but they are independent of each other, ie.
They do not require other modules to be able to function. Typically, these are desktop applications that connect to the internal network of the company. ERP systems design for larger businesses that handle a large amount of data. Their goods, customer billing. On the market, there are ready solutions such as systems. Comarch ERP or SAP ERP. Purchase of such solutions and its operation requires a great financial effort. | ㅤ | ㅤ | ㅤ |
CRM | Customer Relationship Management | an ERP module that is related to customer relationship management. As CRM has grown in importance for sales force automation and marketing, it can be used as a standalone software. The three fundamental functions of CRM are communication (establishing contact with customers), operational (business process automation), and analytical (analyzing customer behaviour based on operating data). | CRM facilitate the organization of the tasks of sales teams and marketing, where he You can gather information about leadach and give them status or type of contact. Thus we are sure that no lead will not be left out or deprived of service. It also allows us to analyze customer behavior and to plan an appropriate marketing approach. We explore then our knowledge of consumer behavior, and we know its needs. Also, we can quickly respond to their problems and react in a crisis. | CRM systems can be purchased on a monthly subscription (eg. BaseCRM or miniCRM) SaaS (software in the cloud). Where the software does not meet our expectations, you can always outsource the creation of your own CRM tailored specifically to the needs of our company and the industry. | ㅤ |
CMS | Content Management System | a system for content management. Just as CRM can be one of the major modules of the ERP system, but also can easily operate completely separately. CMS is used to manage the content on the website. This may be a side product, company, and even shop or blog. Through content management mean change / add / delete content from the page, change or add a new feature or user management. | There are many ready-made CMS and each of them offers different options available. One of the most popular CMS is WordPress, Joomla! and Magento. Some are completely free, while for others you need to purchase a license. For small customer requirements, these CMSes very well placed. However, when we talk about more complex pages or web applications, we will need to order our own CMS, which will be perfect for our business. | ㅤ | ㅤ |
ACPT
Any one familiar with ACPT it’s something to measure D-sat.
Question asked by Mimi
ACPT Meaning
ACPT = After Call Paperwork Time
It is the time taken after a call to process paperwork related to the call. Now just called After Call Work or Wrap Up Time
With thanks to Jonty