WinningKPI - CRM - KPI for Measuring of Customer Response Effectiveness posted in category CRM KPI details: This indicator is for measuring the effectiveness of customer response as part of Customer Relationship Management (CRM). This can be measured in many ways, and it can vary from one company to another.
A company that is taking a strategic approach in its CRM practices may decide to adapt its customer response strategies to benefit long term customer relationships. This will generally be figured in customer service policies, staff training etc.
Let us take for example a situation with a customer unsatisfied with the purchase of a gadget. The customer contacts the manufacturer straight away and complains about the gadget not performing at the expected quality standards. The response that the company representative gives to the customer can have a high impact on the future relationship between the company and the customer. If the customer is unsatisfied with the response, most likely a repeat purchase will never occur again, which means a lost customer for the company.
Multi-national companies lose millions of customer a day; therefore customer retention is fundamental to business performance.
If the company has in place a high performance CRM system, most likely the member of staff will be trained in dealing politely with the customer, offering compensation, a new gadget etc. Another important factor is time, as the customers expect quick and convenient response. For instance, if it will take long to post the new gadget, the attendant may offer the customer a choice to pick up a new gadget from a retail store etc.
Hence, in measuring Customer Response KPI, the following factors may be taken into consideration:
- Time period between customer contact and response
- Time to resolve issue
- Customer level of satisfaction towards the manner in which the issue was resolved
- Customer level of satisfaction with the solution
- Likelihood of repeat purchase
The company may choose to rate these factors (and any other additional factors) and use this to rate the Customer Response KPI. The aim is to maximizi the effectiveness of Customer Responses in order to benefit the customer relationships.
Formula:
Effectiveness Rating based on Company Benchmark
KPI Unit: performance level
KPI Time Frame: Update quarterly or annually
Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Customer Response Effectiveness using the factors above:
Example:
The company receives the customer complaint regarding the gadget fault on May 2nd.
An agent raises the issue on May the 4th
The agent calls the customer on May the 5th but does not give any solution.
The issue is resolved on May 10th by a later customer by offering a compensation product and the customer receives the new gadget on May 14th.
Hence, it took 12 days to solve the issue, and more than one agent was involved.
When asked to complete the survey, the customer rate 1 out of 5 on satisfaction and customer service level. Most likely he will never purchase again from the company.
This bad example of customer response effectiveness it’s what costs companies millions of dollars a year. Having in place call centers, support team (technical support, admin support) can have a great impact on the quality of customer service and customer response.
Oana Boteanu | + | October 1, 2012 at 5:38 pm
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