Posted on 21 September, 2018 | 4 mins
If customer engagement was easy, every business would be mastering it. Fortunately for forward-thinking businesses, it’s not—meaning there’s a chance to get ahead of the competition in a way that’s both profitable and sustainable.
The reason we say this is because 84% of businesses that work towards improving their customer experience see an increase in revenue1. The trick is to convert that revenue into profitability, which is where your KPIs (key performance indicators) come into play.
Set your customer engagement KPIs correctly and you’re looking at engagement that’s measurable, shows demonstrable results and has an effective return on investment.
Need some ideas to get you started? Here are five cool customer engagement KPIs, and some absolute essentials to have in place first to help you rocket ahead.
Five customer engagement KPIs
1. Average customer support resolution time
Engaging with your customer means solving their problems as best and as fast as you can—and the benchmark for what your customers find to be an acceptable response time is steadily increasing.
Almost two-thirds (64%) of B2C and 80% of B2B customers say they now expect real-time responses and interactions2.
So, a simple customer KPI can be reducing the average time it takes for you to solve customer support problems. One metric for managing this is the amount of new support tickets that come in throughout the week vs the amount of tickets solved in that time. If you’re receiving more than your people can handle, your customers will know it. You’ll have to make some changes or risk falling behind with this KPI… but more on that later.
2. Website goal conversions
When it comes to engagement and attracting customers, digital marketing offers so many new ways of measuring success.
Consider your website as a way to engage with customers. You can do this throughout your customer attraction and nurture cycle. You can educate them on a product or service, make the sale and then continue to nurture through content—all on your website.
These are all good ways of improving engagement, but you’ll need something to track it. Google Analytics gives you that power. First, you set up a goal—making a sale, signing up to your newsletter or downloading some educational piece of content. Then, as people use your website, you can track how many follow through with one of your established goals.
Essentially, you’re tracking how effective your website is at guiding people to the places you want them to go. Aim to improve this and you’ve got a great way of proving the worth of your digital marketing dollars.
3. Net promoter score
A net promoter score (or NPS) is a way to gauge what your customers really think of your business, and how many would recommend you based on your existing relationship.
Your customers rank various parts of their relationship with your business from 1–10, and they’re encouraged to leave comments along the way. The comments can be useful for getting open-ended feedback. The score, meanwhile, is a calculation of how many promoters and detractors you have as a percentage of respondents, so it’s a great, consistent value you can track each year or quarter—the makings of an ideal KPI.
For more on net promoter scores, Zendesk has published this a great, informative blog post.
4. Percentage of leads won
Not all leads will be won, simply because there are so many variables that influence a sale. But being able to track your success rate as a percentage total leads is a good way to see if something is going right or wrong when it comes to engaging and attracting customers.
And because this is a percentage value, you can compare your success rate against previous years, quarters or months. Simply having more or fewer leads won’t skew the results, so it’s scalable to your business.
As a bonus, great CRM software like Capsule gives you plenty of data to help you find out about your success rate with leads (and it’s pulled into your 9 Spokes data dashboard... but more on that, too, in a sec).
5. Email campaign performance
You know what makes emails a great measure of your customer engagement? They’re relatively unbiased. A customer will get an email from your business on their own time. They’ll decide whether or not to open it with no outside bias—no pushy salesperson peeking over their shoulder, just their desire (or lack of) to read what you have to say.
So, the success of your direct email campaigns should be measured, not just because they’re a great marketing and even sales tool, but because they’re related to customer engagement.
A customer engagement KPI example, then, is average email click-through rate. This is defined as the percentage of customers who received the email and were enticed enough to follow a link. Another KPI example could be the average open rate. Although this doesn’t measure the goal of a user clicking through to your website, it does give you an impression of how many customers engage with your email campaigns enough to read your content, making it a good starting point for making improvements.
The good news is that apps like MailChimp collect all that data for you, so it’s easier to measure KPI success.
Essentials for you customer engagement KPIs
Before you set your customer KPIs, just take a beat to think how prepared you are to manage them on an ongoing basis. For that, we recommend looking into these three KPI essentials first.
Establish who takes the lead
What good are amazing customer engagement KPIs if no one is around to take ownership of them? It’s a problem businesses see particularly with customer experience (CX)—if it’s something new to your company, you might struggle to find out where it should sit.
- 30% of businesses say CX is led by their marketing team.
- 45% say it’s led by customer service.
- 19% have a dedicated customer experience officer or team leading it.
- And 6% don’t have a CX initiative1.
The lesson here is to decide who will be responsible for setting, tracking and reporting on your customer-related KPIs from the get-go.
Always be tracking
Much like our tips on hitting your sales KPIs, we want to emphasise the importance of tracking the progress of all of your KPIs. If you’re finding yourself behind in reaching your goals, you’ll want to look a little closer into what has worked and what hasn’t with your specific customers.
For instance, if your ‘average customer support resolution time’ KPI is lacking, what has happened that could have affected it? Have you been short-handed in customer service? Have newer issues caused confusion or unsureness among your staff members?
Then, when you know the problems, start looking at ways to fix them. Do you need more staff in at busier times of the day and do your response teams have the right level of training and the information they need to answer support questions effectively?
So, continually track your customer engagement KPIs, dig into the data when you need it and start replicating what works more often.
Try out this free tool
9 Spokes is a smart business dashboard that puts information from your business apps all in one place. But did you know when you have KPIs, your 9 Spokes dashboard becomes a KPI dashboard, and a way for you to track your success towards your most important goals? Pretty nifty, right?
Powered by the best customer service platforms (like Zendesk), you can use your data dashboard to track things like your customer service ticket response rate (the number of new tickets lodged and tickets solved throughout the week). Or you can track your email open or click-through rates. Or your website goal conversions. Or the percentage of leads your team has won. Or all of these in one place to get a greater view of your business and its KPIs!
At the same time, you can see the success of all your marketing campaigns, your sales figures, inventory and cash flow metrics side-by-side. It’s a smart tool to get greater business clarity and continuously track your goals, wherever you are, day or night.
Oh, and it’s completely free to use—did we mention that? Not sure which apps will work best for your business? Sign up below or go to our business app marketplace and we’ll suggest some. It’s that easy.