Businesses in the know understand that in the absence of metrics, there is no means to track progress.
Selecting and tracking Key Performance Indicators (KPIs) is a good practice for business organizations of all sizes. A Key Performance Indicator, or KPI, is a measurable value that tracks and reports how a company is achieving business objectives.
KPIs are unique to each organization, but most are aimed to track behaviors and engagements associated with revenue, service, and growth. Measuring what matters most sets the stage for the execution and delivery of superior customer experiences. The number of potential Key Performance Indicators is endless, making careful selection of those that you wish to track and leverage a key element of a successful business strategy.
Through careful analysis of the impact of certain KPIs in the overall success of our partners, we have identified five indicators that are simple to track and will without a shadow of a doubt impact your brand reputation, regardless of the age, stage, or size of your business organization.
Let’s take a look at these five KPIs and explore why they matter and how you, too, can integrate them to your business plan.
It is no surprise at all that happy employees make for happy customers. By tracking the satisfaction of your employees, you will be able to make direct correlation with issues associated with customer service.
With the majority of negative customer reviews posted on review sites being rooted in customer service, it is essential to move away from a culture where the staff feels disenfranchised. Empowerment and ownership shape the customer experience from start to finish and are key determinants in how your business is perceived by new and loyal repeat customers.
There are many ways to track this KPI, from tracking retention to running frequent surveys to measuring different dimensions of employee satisfaction. When deciding to measure your employee satisfaction, you may want to conduct initial focus groups to better understand what matters the most to your teams, and how their preferences influence the way they engage with customers. Having a workforce that feels vested will fuel improved customer experiences and spill over to shape superior online customer reviews.
Constantly having to market to new customers in order to replace one-time customers who are no longer inclined to patronage a business can be highly costly and very unsustainable. In addition to increased marketing costs, a high churn rate is always associated with a decrease in the overall quality and positivity of online reviews.
If your customers are leaving one after another, then there is something intrinsically wrong with the way you are doing business. Tracking churn rate as part of your essential KPIs will serve as an early alert of potential issues rooted in poor facilities, decreased customer service, misaligned expectations, and concerns with product or pricing issues.
Many point-of-sale systems allow you to track and receive insights related to repeat customers by associating credit card numbers with other aspects of their profile, such as voluntarily released contact information or address. A low churn rate is a great barometer of business health and will always have a diametrical correlation with customer-review scores. Low churn rate equals high review scores.
Internal Audit Score
Nobody knows and understands your business like you. Take time to consistently run internal audits to measure your business against your goals and against your conceptual vision.
By conducting internal audits, you are better able to draw a picture that depicts the health of your business organization. This KPI allows you to identify issues of alignment in terms of the shaping of your offering.
For example, if your organizational goal is to be a five-star hotel as rated by AAA, then it is imperative that you control the quality of your facilities and measure the speed of customer experiences. Through internal audits, you will be able to identify shortcomings such as wear and tear or customer service hurdles.
Establish a quarterly audit, and parse your observations against customer feedback, as displayed in online reviews. Once discrepancies are identified, work on fixing the issues that trigger customer concerns, and add the metric to your internal audit, if not yet included.
Best and Worst Products and Services
Weak product development strategy and poor inventory management that does not take into account customer demand can significantly tarnish the brand reputation of your business organization.
Taking the time to track and corroborate best and worst performers from your product and service offering will empower you to craft and revise marketing and operational strategies that best align to the preferences of reviewers and optimize by eliminating or revising the products and services likely to create friction.
Tracking best and worst KPIs can be achieved through the use of dashboards provided by your POS software, and further validated by comparing the most and least popular items and experiences against the content of your online reviews.
By perfecting your offering to better match the preferences of your customers, you will soon begin to see upward trends in terms of customer satisfaction and increased scores in online customer reviews.
Net Promoter Score (NPS)
If you are not yet capturing and tracking your Net Promoter Score, then you are in for a marketing treat. The NPS has been called the KPI of the decade, and it empowers corporations of any size to understand the sentiment of their customers in regards to their offering.
Your Net Promoter Score will allow you to isolate your most loyal customers, identify the customers that are at risk, and point to those that will likely damage your business through negative word of mouth.
The beauty of the Net Promoter Score lies in its simplicity. With one question, it provides priceless insights that will help your business organization make decisions that matter, and quickly move forward toward making changes in vulnerable areas of the customer experience.
At ReviewTrackers, we believe the NPS is essential to the shaping of your online and offline reputation, and we have created the tools to help you capture this KPI with ease. Our Feedback Request tool is part of the many services that enhance your review management platform and equip you to do business in a bigger and better way.