customer service kpis - kpi working group presentation 3

Customer Service KPIs

KPI Working Group MeetingWednesday 21st Sept 2016

Presented by:Chikodi OnyemerelaPartnerships Manager

www.britishcouncil.org 1

Customer Service………..defined


This Customer Service!

“ there is only one valid definition of business purpose: to create a customer” – Peter Drucker, 1954


Many Metrics


Straight to the pointCustomer Service Metrics: (these helps in customers’ segmentation)

• Customer Acquisition metrics

• Customer satisfaction

• Customer retention: the rate of customer retained to the number at risk of loss to competitors

• Average retention cost: the ratio of retention spending divided by the number of customers retained

• Customer loyalty

• Customer referral

• Recency : the length of time since a customer last purchase

• Customer Life Time Value: the present value of the future cash flow attributed to the customer during their relationship with the organisation

• Share of wallet: the percentage that the organisation has of the customer’s total purchase

• Customer profit: the difference between the revenue earned from the customer and the cost associated with maintaining the customer during a specified period of time

• Willingness to recommend (WTR)

• Net Promoter Score (NPS)

• Word of Mouth/Word of Mousewww.britishcouncil.org 5

Which implies!• Get customers

• Look after them

• Satisfy their needs

• Keep them

** if you do a good job they might help you with referrals


Transactional opportunity as opposed to Relational

“ retention and loyalty doesn’t happen by accident it requires relationship management and retention strategy”


Customer Segmentation……..defined!

….Customer Segmentation is essentially the categorisation of our customer base into clearly defined, semi-ficticious buyer

personas.


Customer persona Each of these unique persona profile represents varied demographics

and socio-economic background, having particular set of goals, challenges and motivations that are unique to them, and react to certain kinds of content in different ways

The key is to create as many unique buyer personas as necessary to categorise all of the various elements of our customer base

After creating a targeted set of buyer personas we will be able to personalise our content to ensure it really resonates with the intended audience. Customer personas don’t just help us to effectively market to our typical customer base – they help us expand to new customers.

Do we set KPI for customer profiling based on the categorisation above and content that resonate with each categorisation?

Sight the example of people viewing canivals as nudity and devlish as well as possible political, religious and cultural difference. Sensitivity in all sense of it.


Standing out from the crowdUnlike in the pre-digital age when competing for advertising space was the biggest concerns for marketers, in 2016 it’s all about competing for Attention.

It is estimated that more than two million new blog posts are published to the web every single day. That’s before you take into account all of the webinars, podcasts, infographics and various other forms of content that are uploaded by brands and individuals

With this in mind, it’s clear that we need to do everything we can to standout from the crowd.

Do we therefore set KPIs for our Digital Platform: ie Facebook, Snaptchat, instagram, etc


The conversion funnel


The Conversion funnel is the journey a user takes on the way to becoming a customer

Customers can enter the funnel at any stage of the funnel, but the aim of every of our csutomer contact channel should be to nurture that opportunity and push that individual customer further along the Conversion/Sales funnel. Do we need a KPI here to encourage and facilitate this journey?

Marketing Funnel


My Customer Insight Project “We are all going to be thinking and sharing ideas about what you

can do to resolve customers' issues and complaints in order to rebuild trust with them.

We will be focusing on how to use customer insight data, including that from our Customer Effort Assessment survey results, to understand what causes problems for customers” - TitleCSW 2016Titehttps://


TitleGender

My Customer Insight Project……cont. https://www.formstack.com/admin/submission/report/5336452


AgeType of Enquiry

Quality of Service

BC Location

Few ModelsService Core:

• Assurance,

• Responsiveness,

• Reliability,

• Empathy; and

• Tangibles

These needs KPI and measuring


Few Models…cont.Loyalty Ladder


Few ModelsNet Promoter Score: introduced by Fred Reichheld in 2003, it measures the loyalty that exists

between a provider and customer based on customer answering the question:

“how likely are you to refer us to friends or colleague?”

Promoters (9-10) – enthusiastic customers who will fuel growth with repeat and referral business.

Passive (7-8) – current customers susceptible to competitor offerings and thus have neutral brand

impact.

Detractors (0-6) – customers who voiced dissatisfaction and harm the brand

NPS can be as low as -100 (everybody is a detractor) or as high as +100 (everybody is a Promoter).

An NPS that is positive (ie Higher than zero ) is felt to be good, and NPS of +50 is Excellent


Relationship Management


Real truth about Loyalty


Few ModelsAverage Customer life time value: this is the amount a customer spends on average over a period of years. Anything we can do to boost a customer life time value helps the bottom line. Customer life time value is a prediction of the net profit attributed to the entire future relationship with a customer.


Few Models…cont.


The total product concept…cont.


Thank you


customer service kpis - kpi working group presentation 3

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