Category Archives: Marketing

Community/environmental satisfaction index

Definition:
Degree to which stakeholders from the environment are satisfied with the company, or a specific component of the company (e.g. Social responsibility). Measured with external survey

Calculation:
Happy stakeholders (predefined grade) / all responding stakeholders) * 100%

This KPI is measured as: Index

Interpretation of results: Higher Is Better

Strategic objective:
Working well with the community and environment

Complaints not resolved on first call

Definition:
Number or percentage of complaints that have not been resolved after the first call of the complaining customer. This is a measure for the effectiveness and knowledge of the call agents. It is important to make sure that complaints that are registered as resolved are really resolved, best accorded by the customer.

Calculation:
Sum of unsolved complaints that is not resolved after the first call

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Retention of customers/minimize negative comment in the marketplace

Key customer satisfaction

Definition:
Satisfaction score of the most important customers. This has to be defined in more detail: highest profitable, highest sales, strategically, etc.

Calculation:
Average of satisfaction scores of key customers

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Retention of customers/increase sales

Abandon rate—caller gives up

Definition:
Number or percentage of callers to your service related telephone number that gives up before speaking one of the organizations' employees. A possible reason is a high average waiting time.

Calculation:
(Number of callers giving up bevore speaking to an employee / total number of callers) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Minimize negative comment in the marketplace

Calls answered first time

Definition:
Number or percentage of calls that has been answered by the first line, not having to be transferred to another party (second serviceline).

Calculation:
(Number of calls answered at first line / total number of calls) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations

Waiting time

Definition:
The average time a client has to wait for its call to be answered by an employee. It is important to determine goals

Calculation:
Sum of the waiting time of all calls in the defined period / number of calls in that period

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Lower Is Better

Strategic objective:
Minimize negative comment in the marketplace

Complaints not resolved within target time

Definition:
Total number of complaints that has not been solved within the targeted time.

Calculation:
Sum of unsolved complaints within given target time

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Retention of customers/minimize negative comment in the marketplace

Customer satisfaction of top 10% of customers

Definition:
Average customer satisfaction specific for the top 10% of customers. Top 10 needs to be defined (eg. sales, profit)

Calculation:
Average of scores

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Number of customer referrals

Definition:
Number of potential (customers) that have been referred to the organization by a certain predefined third party, e.g. clients or suppliers.

Calculation:
Sum of referrals

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Customer loyalty index

Definition:
Percentage of customer retention within customer categories. Retention means there is at least a second deal after the first one. 100% means all customers within the category did business with the company more than once. Loyalty can be specified in other ways, according to the type of business or the organisational goals. IE: the numer of customers that places an order every quarter.

Calculation:
Customers within the category with at least a second order / all customers within the category) * 100%

This KPI is measured as: Index

Interpretation of results: Higher Is Better

Strategic objective:
Long-term relationship with profitable customers