Today we will explain which are the key metrics that you need to adopt if you really want to become customer-centric.
In the very first video on our channel, we explained how both product and customer-centric companies have the goal to maximize shareholders value, but they try to get there in different ways.
We know that customer-centric companies build their success on relationship expertise. In this case, managers main goal shouldn’t be just revenue, but it should be a mix of a set of metrics, more in line with customer-centric goals.
We truly believe that both company goals and employee incentives should be connected to these type of metrics, and for this reason, I am listing 3 of them here:
Number one Customer Lifetime Value (CLV)
Customer Lifetime Value, or CLV, measures how much your customers will spend during the, hopefully long, relationship with your company. This is the number one metric, as it shows how healthy your customer base is, and how likely is your company to grow in the future.
The cool thing is that you can determine the customer lifetime value specifically for different types of customers, as well for acquisition channels so that you can easily identify who are your greatest supporters.
Number two Early Repeat Rate
Early Repeat Rate measures the number of customers who purchase again from you in a determined time frame. The time frame length is influenced by the industry where you operate and for example it short for fast-moving consumer goods, and long for car manufacturers. Frequent and regular purchase indicates the good health of your business.
Number three The Star rating of your products
If your products are sold online the star rating that they get on e-commerce is your most important metric. Having a star rating higher than your competitors drives sales, and inspire new customers to buy. Your company goal could be to reach a certain average star rating across all channels, or to improve the score compared to the previous years, or to make it higher than your competitors.
Implementing these new metrics and connecting the employee incentives to them is essential if you want to foster a customer-centric transformation in your organization.