Knowing about customer need, requirements and how satisfied customer is with your service is important to make the organization grow and work efficiently.
Customer success is the function of a company responsible for managing the relationship between a vendor and its customers. Customer and business go hand in hand. Customer success pours success to your organization so it is very important to make good relationship with customer and vendor.
A good customer success moto is to value the customer throughout the journey from pre-purchase to post-sale and beyond. This can include onboarding, product training, customer service, and support. Welcome to the world of customer success with IQ user that gives the wide knowledge of it.
How Do You Measure Customer Success?
There are three Essential Customer Success key performance indicators
Customers churn is very necessary to understand why customers churn- churn means customers come and go or you can say leave your products for a given period of the time. As a performance metric, this will help to understand why customers churn.
Net Promoter Score (NPS)
It’s a customer satisfaction benchmark that measures how likely your customers are to recommend you to a friend. NPS measures the loyalty of customers to a company. By gathering more data than just your customers’ likelihood to recommend you, you’re able to make links between their responses and your NPS.
To calculate your NPS, you first have to survey your customers. The NPS is the typical answer to the question “On a scale of 0 to 10, how likely are you to recommend to a friend?”
- Promoters: Customers who answer the question with 9-10
- Passives: Customers who answer the question with 7-8
- Detractors: Customers who answer the question with 0-6
Promoters are the loyal customers brings back new customer by recommending your products and services. Passives are indifferent and could become promoters — or they could switch to your competition. Detractors are unhappy customers, who do not like to stay with you and also can damage your reputation by sharing their bad experience with others.
But changes in the breakdown of scores — between promoters, passives, and detractors — also gives customer success teams an indication of which direction the overall NPS is trending.
NPS surveys help in cut down churn rate in half. Based on the responses received, contacting customers by sent emails and offers to customers depending on their level of satisfaction.
We can give offer discounts on products to the promoter, and thanked detractors for their honesty reviews and asked little help how to improve and come over with their expectations.
Customer Effort Score (CES)
Customer Effort Score (CES) is a type of customer satisfaction survey used to find customer loyalty by reducing customer efforts by measuring the ease of service experience with an organization. It asks customers to rate the ease of using products or services on a scale of “very difficult” or “very easy”.
The quest to improve customer effort score is seemingly never-ending, especially given the rise of new trends in customer success. To increase customer effort depend on the nature of your business model, customer journey, and customer relationships.