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KPI for Measuring of Customer Interaction Rate posted in category CRM

WinningKPI - CRM - KPI for Measuring of Customer Interaction Rate posted in category CRM Oana Boteanu This indicator is for measuring the customer interaction rate. In other words, it measures the number of contacts between the customer and the company, before a purchase is made.
This KPI is often measured as part of the CRM system, and monitoring it can give a clear indication of success rate and customer behavior pattern. For instance, if a company has been measuring customer interaction rate via newsletters and the following trends appear:
- After 2 contacts (2 newsletter emails sent) 30% of customers made a purchase using promotional code
- After 6 contacts ( 6 newsletter emails sent) 20% of customers unsubscribed

This measurement will give the company an indicator of customer behavior, and understanding the pattern of customer behavior can help the management team to create strategies based on it.
This KPI can be measured simply by calculating the average number of customer interactions needed before a purchase is made, in a given time period. This will however, only give an average figure. For a more in depth/accurate figure, further measurements can be made.

Formula:
Total number of customer interactions / Total number of customers that made a purchase

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 Let’s have a go at the example above. Let us assume (hypothetical values) that the newsletter campaign was targeted at an audience of 10 000.

Over a 6 months period the measurement is:

Total number of interactions: 60 000 (1 newsletter per individual a month)
Total number of customer that made a purchase: 7000

Customer Interaction rate (averaged):
60 000/ 7000 = 8.5

Hence, it takes on average 8.5 interactions for a customer to make a purchase. This is of course an averaged figure, likely to have an error margin. In our case, only 6 interactions were made per client.
However, it does give a relative figure and can be followed by other KPIs that measure different angles of the customer interaction rate.

Oana Boteanu | + | October 1, 2012 at 5:27 pm

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