Tag Archives: Customer

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

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

Visits to top customers

Definition:
Number of visits made to a predefined set of customers (high potential, top 10 customers in turnover or profitability, etc.) to maintain and/or build a long term relationship with those customers.

Calculation:
Number of visits

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

Interpretation of results: Depends On The Goals

Strategic objective:
Long-term relationship with profitable customers

Rate of client relationships producing significant net profit

Definition:
Gives an indication of the profitability of customers. If a certain percentage of customers has no significant net profit, the debtor-risk for the organization will increase.

Calculation:
Relations with significant net profit / Total number of relationships

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Number of proactive visits to top 10% of customers

Definition:
Number of proactive visits of employees to the 10 best customers. A proactive visit can be described as a visit the client did not particularly ask for, and is initiated by the organization.

Calculation:
Sum of visits at the top 10% clients.

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

Interpretation of results: Depends On The Goals

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

Customers lost

Definition:
Number of customers, or the percentage of customers from the total customer file, that has been lost and is not a customer anymore.

Calculation:
Amount of lost customers, or the amount of lost customers / total number of customers

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability, Long-term relationship with customers

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

Customer acquisition rate

Definition:
Customer acquisition (rate business unit attracts or wins new customers or business). E.g. Percentage of new customers

Calculation:
(Number of new customers / Total number of customers) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability