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KPI for Measuring of Customer Engagement Ratio posted in category CRM

WinningKPI - CRM - KPI for Measuring of Customer Engagement Ratio posted in category CRM Oana Boteanu This indicator is for measuring the ratio between engaged and disengaged customers. This is often measured via surveys and the information is stored through Customer Relationship Management (CRM) systems.
The aim of the organisation is to maximise the number of engaged customers, as they are a very valuable asset to the company, and of course minimise the number of disengaged customers.
For example, Gallup Consulting® has been known for taking a strategic approach to maximising customer engagement ratios, measured via surveys. This has increased the company’s performance in terms of sales growth, gross margin and wallet share etc.
The definition of ‘engaged customer’ may vary from company to company. Generally, an engaged customer is considered loyal, supporter/fan of the brand, regular buyer, perceive the company as high quality and willing to pay any price (low price sensitivity) and even promote the company by word of mouth etc.
By having a strategic CRM system in place, the company can ensure to maintain high standard relationships with its engaged customer base, and try to engage the ‘disengaged customers’.
As the common measurement methods are surveys, this ratio can be calculated by comparing the figure or % of engaged customers to figure or % of disengaged customers. By monitoring this KPI, companies can develop and implement customer relationship strategies to maximize performance.

Formula:
Number of engaged customers (%): Number of disengaged customers (%)

KPI Unit: Number, %

KPI Time Frame: update annually

Posted by Oana Boteanu | Help to protect community: Flag for moderation

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Here are comments:

KPI Expert Gallup Organization has turned the customer engagement concept into a measurable 11-item survey. They have successfully used it to monitor how engaged their customer base is and built strategies to increase their business performance by improving customer relationships.

The Gallup Organisation Model covers 4 engagement characteristics: Confidence, Integrity, Pride and Passion. Based on these characteristics they build the survey that measures how customers feel.

Example of survey questions:
a. Overall, how satisfied are you with (brand name)?
b. I feel proud to be a (brand name) customer.
c. (Brand name) treats me fairly.

Oana Boteanu | + | October 1, 2012 at 5:42 pm

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