Topic: Customer Insights
Measuring metrics and data can be overwhelming and confusing. Have you ever had trouble deciding where to start?
Do you remember our previous blog series 5 Key and Measurable Reasons to Adopt Preference Management? We discussed some hard KPIs that may be the initial motivator for a company to implement a preference management system. There are plenty of other reasons in addition to those 5, though. We refer to those as “soft” KPIs. They’re generally not the #1 reason a company wants a preference management system. However, they definitely make a difference when looking at whether it’s been effective or is important to continue. Many of these soft KPIs have more to do with customer retention, instead of new customer conversion.
The range depends on what industry you’re in – but measuring customer retention is valuable.
Companies’ marketing ecosystems are increasingly complex. To help cut through the clutter, you have to be specific about which metrics matter. Performance measurement needs to focus on the lifecycle of the customer and how likely customers are to engage with your brand. “Customer Interaction” metrics focus on retention rather than conversion. Those metrics need to be shared across teams and life-cycle stages.
Because these metrics gauge the customers’ perception, they are more difficult to quantify. That means there needs to be agreement across the organization about the right data to track. Once you know what data is important, you’ll be able to identify the baseline information. And once you know your baseline, you’ll be able to track and measure success.
6 Examples of “Soft KPIs”:
Having established a baseline, companies are then able to examine the data point that really matters: the trend line. For example: does customer loyalty stay stable over time? Does it soften, as the customer forgets about you? Or does it increase, as you show that you’re trustworthy and easy to work with? How about your online reputation? Are your general social media mentions positive, negative, or neutral? Are you present on job boards and company review websites, like Glassdoor or Yelp? How’s your company ranking? Do people look at you favorably?
Customers will select useful or timely communications. They’ll opt out of campaigns and communications they don’t find interesting or relevant. In the short term, the data will let you course-correct. This will reduce churn and improve marketing efficiency. Over the long term, as the amount of data grows, it will become a large sample size. Once you have a large sample to track, making large-scale marketing decisions becomes easier.