It’s widely accepted that there can be tremendous value for businesses that rely on key performance indicators (KPI’s) to measure, manage and communicate organization results. KPIs are a valuable tool to tell you if you’re on the right course toward meeting your strategic objectives, or if you need to make adjustments to get back on track.
But one of the key questions that managers grapple with is determining which key performance indicators (KPI’s) to measure, and how to deploy them successfully over time. This is especially true when it comes to the measurement of customer satisfaction.
Why determining customer service KPI’s can be tricky
Focusing on the wrong KPI’s means you’re spending time and money measuring, monitoring and trying to improve metrics that aren’t critical to your financial institution’s objectives. The same is true of poorly structured KPIs, or KPIs that are too difficult and costly to obtain, or to monitor on a regular basis.
Select too many, and you’ll be overloaded with endless pages of data too extensive to be effectively managed or used to improve customer satisfaction.
To avoid common headaches that occur when trying to determine which KPI’s to measure, it’s best to adhere to the following 7 rules:
- Each KPI has its own applicability, and limitations. Each can stand on its own as a useful tool for measuring certain customer interactions, but a comprehensive measurement model is necessary to give a complete picture of account holder experience.
- Determine what KPI’s to measure based on the key drivers that your account holders consider important. Just because something is measurable doesn’t make if meaningful in the context of your account holder’s expectations.
- Define KPI’s accurately and clearly, ensuring that the aspect of the customer experience being addressed is both quantifiable and measurable.
- KPI’s should link back to a customer satisfaction objective and measure something you can impact.
- Ensure that KPI’s deliver comprehensive, actionable insight that is linked to and applied to particular employee interactions or processes on an on-going basis.
- Focus on trends in your KPI’s more than specific data. The direction of change usually matters most.
- Reviewing on a quarterly or annual basis can provide both positive and challenging insights.
Identifying the key drivers of customer satisfaction for your specific account holder base and aligning them with these – or other – metrics that align with your objectives can be the start of a successful KPI program. Successfully applying the insights you derive from your KPI’s can improve key drivers, leading to greater customer satisfaction, stronger brand loyalty and, ultimately, better performance.
But Don’t Get Too Set in Your Ways
KPI’s should not be set in stone, but rather evaluated consistently over time and modified where necessary. Revisit your assumptions. Financial institution goals and objectives change, as do those for customer experience. Don’t continue to use KPI’s that are no longer meaningful or useful.
While there are an infinite number of metrics that can be used to build KPIs around customer satisfaction, there are several that have gained wide acceptance across industries for providing valuable insight.
Examples include: the Net Promoter Score (NPS), the Customer Satisfaction Score, the Customer Effort Score and Forrester’s Customer Experience Index.
One size doesn’t fit all. When it comes to selecting the right key performance indicators (KPI’s) for measuring customer experience, it’s important that the KPIs you use provide valuable customer insights aligned with the goals of your financial institution, not your competitor down the street.
If a metric isn’t key to you, it’s not a “key” performance indicator. Select KPIs that are relevant for your industry, and, just as importantly, for your organization.