![\"Customer](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2019\/02\/Customer-Assets.png\")
<\/p>\nMetrics are the \u2018scorecard\u2019 of your marketing strategy. When these metrics, also known as key performance indicators (KPIs), are moving upwards, you\u2019re winning the marketing game. When your CX KPIs are trending downwards, you\u2019re on the losing team (at least for now).<\/p>\n
You probably know your conversion-related KPIs by heart: metrics like conversion rate, revenue per visitor (RPV), and average order value (AOV). And on the acquisition side: cost per acquisition (CPA), return on ad spend (ROAS), and marketing qualified lead rate (MQL).<\/p>\n
But, to get a clear sense of what matters most in your customers\u2019 minds, you need to include CX KPIs (customer experience) in your scorecard mix.<\/p>\n
These CX KPIs measure your prospects\u2019 and customers\u2019 perceptions of your brand, judged after several interactions, or \u2018touchpoints,\u2019 with both your online and offline marketing channels.<\/p>\n
They ultimately tell you whether your customers will come back to buy more, or start looking for another brand that will serve them better.<\/p>\n
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Customer experience metrics (also known as user experience or digital experience) help you keep track of your customers experiences of your brand. With this knowledge, you can make smart decisions to improve customer journeys and drive more high-converting traffic to your site.<\/p>\n
Our acclaimed strategic marketing strcuture, the RACE Framework, is an essential tool for identifying and prioritizing opportunities in your marketing strategy. Focusing on using data such as CX and more, use the RACE Framework to measure your customers' lifecycles across reach, act, convert, and engage. So you can be confident you are measuring the best metrics to achieve your goals.<\/p>\n
If you're looking for a data-driven marketing strategy, or just need some advice prioritizing optimization to improve your CX, why not book a call with a member of our customer team? Discuss your marketing strategy in the context of the RACE Framework, identify opportunities and challenges and talk through solutions to find what works for your business. Book your call to get started today. Book your free 1-2-1 consultation to develop your new strategy with the RACE Framework<\/p>Book consultation<\/a><\/div> The most important CX metric in business is adding value - principally, bottom-line (profit) value to owners and shareholders. Knowing this, CX guru Jeanne Bliss defines the number one CX metric as \u2018Net Customer Value Growth\u2019 (NCVG). So, what does this mean?<\/p>\n NCVG is simply the difference between the number of new customers you added in a given period, less the number of customers you lost during the same period. Importantly, it\u2019s not just the net number of customers gained or lost, but the economic value of this customer growth or loss. That is:<\/p>\n Net Growth or Loss of Customer Asset =<\/p>\n New Customers (volume and value) - Lost Customers (volume and value)<\/p>\n It\u2019s vital to show your customer asset metrics as whole numbers, not as retention rates so there\u2019s a clear connection between the people and the math. Just talk percentages or scores and your executive team\u2019s eyes will glaze over. But show how much your marketing, customer service, and retention activities have grown the value of their stock, and you\u2019ll soon see the eyes of your executive team, particularly your CFO, widen with excitement.<\/p>\n Why? Because this metric\u00a0sees customers as what they are: assets. Something that puts cash in the \u2018accounts receivable\u2019 column of your balance sheet every month. This metric reflects what they did versus what they said they would do in surveys. As we know, actions speak louder than words in the business world.<\/p>\n The net promoter score (NPS), created by Fred Reichheld, and now trademarked by SatMetrix\u2122, is considered the core metric for customer experience management programs around the world. The reason: it\u2019s simple to collect and calculate.<\/p>\n The graphic above shows the range of \u2018promoter\u2019 scores. Survey respondents are asked: \u2018How likely is it that you would recommend [brand] to a friend or colleague?\u2019 Only respondents who give a nine or ten are considered brand promoters; the others are detractors or passives.<\/p>\n Calculate your NPS as follows:<\/p>\n You\u2019re looking for an NPS that\u2019s greater than zero and preferably higher than 20%.<\/p>\n There is a downside to the NPS: it doesn\u2019t tell you why your customers are dissatisfied or less-than-excited about your brand. This takes us to CX Metric number three, which is a set of behavior-based metrics.<\/p>\n Let\u2019s take that NPS down another level: to the actual referrals, your existing customers are giving to friends or colleagues. But first, here\u2019s a little customer cost background.<\/p>\n It costs a lot more to acquire and convert a new customer than it does to retain a current customer. One study found that it was five times as costly<\/a>\u00a0and a McKinsey and Co. study found that word of mouth was the driving factor in 20-50% of B2B purchase decisions. So it pays to invest time in measuring and responding to customer attitudes about your brand.<\/p>\n Having worked as an account manager at a few digital agencies, I know that \u2018willingness to refer us to prospective clients\u2019 is the most important of all CX KPIs. If, after working with your agency for months or even years, a client isn\u2019t willing \u2014 actually, eager \u2014 to recommend your agency to other clients, you\u2019ve wasted a lot of time and effort. What\u2019s more, these clients\u2019 negative or neutral comments are likely lowering your referrals (and also your New Customer Value).<\/p>\n Some clients, when I mention the importance of tracking this metric, say \u2018Um... I can\u2019t get that.\u2019 Well, to this I say, \u2018you need to try harder to find a way to,\u2019 because referral specifics are a crucial measurement of your customer experience.<\/p>\n Download our Free Resource \u2013 10 common website customer experience mistakes<\/strong><\/p>\n This guide reveals examples of poor website design from different sectors which are commonly seen, but best avoided.<\/p>\n Access the <\/a><\/p>\n <\/div>\n <\/div>\n Here are some ideas on how to get this referral CX metrics:<\/p>\n I\u2019m sure there are other ideas you can come up with. My main point: gather your team and other people who regularly interact with your customers to discuss how to best capture and track these referral events.<\/p>\n As a digital marketer, your goal is to trigger positive emotions and even build new beliefs, in the minds of your customers. But, as I described for CX Metric number one, it\u2019s actions that matter most. So what you\u2019re seeking are connections between visitor actions and the associated lead-generation and conversion implications of those actions.<\/p>\n For example, questions you might want to get answered include:<\/p>\n It\u2019s getting these answers, based on the CX KPIs analyses leading up to them, that will best help you win at the digital marketing game.<\/p>\n![\"marketing](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2021\/02\/E-commerce-growth-customer-lifecycle.png\")
<\/a><\/p>\nNeed a winning marketing strategy?<\/h3>
<\/div><\/span><\/p>\nCX KPI 1: Net customer value growth<\/span><\/h3>\n
<\/p>\nCX KPI 2: Net Promoter Score (NPS)<\/h3>\n
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<\/p>\nCX KPI 3: Referrals from existing customers<\/h3>\n
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<\/p>\nCX KPI 4: Behavior patterns that show strengthening or weakening of the customer relationship<\/h3>\n
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