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18 Customer Metrics

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Customer metrics are techniques for measuring the value of customers to you and your value to them. They include factors such as customer satisfaction and loyalty measurements that are known to correlated with revenue growth and margin improvement. The following are common types of customer metric.

Brand Awareness

Brand awareness measures customer's awareness of your brand initiatives. For example, an automotive company that has spent a great deal of money to develop an exceptionally safe car, may run surveys to see if customers have noticed.

Brand Engagement

Measurements of interactions with customers such as visits to retail locations or social media conversations.

Brand Perceptions

Perceptions are similar to awareness. Awareness metrics involve specific questions to directly measure a strategy. Perception related questions are more general and flexible. A question such as, "Are you satisfied with our quality?" is an example of a perception survey.

Churn Rate

The percentage of your existing customers that you lose in a period of time. Easily measured for service subscriptions. Other businesses may measure lost customers by tracking purchases with methods such as loyalty cards. For example, a customer that hasn't made a purchase in a year might be defined as a lost customer.

Customer Acquisition Cost

The average cost of acquiring a customer including advertising, marketing expenses, sales commissions and any additional costs such as a welcome gift granted to customers.

Customer Complaints

The total number of customer complaints often reported by severity. Can be represented as a percentage of customers. For example, 6% of customers had a complaint.

Customer Lifetime Value

The projected lifetime value of a customer calculated as average future net profit per customer discounted to a present value.

Customer Loyalty

Customer loyalty is typically measured by repeat purchases. For example, a metric may capture the percentage of customers who make at least one purchase a month.

Customer Payback Period

The time it takes for the cost of acquiring a customer to payback. Most relevant to a service contract with monthly fees. For example, if it costs $50 to acquire a customer and they each generate $10 net profit per month, you break even in 5 months.

Customer Satisfaction

Asking customers as directly as possible how satisfied they are with your products or services. Known to correlate with long term financial performance in many industries.

Customer Service Satisfaction Rate

Satisfaction with a particular service interaction such as complaint handling. Often more useful than customer service metrics that are focused on time such as first response time and resolution time. Keeping interactions short doesn't necessarily translate to satisfied customers.

Goal Completions

The number of goal completions in total or as a percentage of customers. A goal completion is anything that you'd like customers to do, such as signing up for your loyalty program.

Large Account Revenue

The percentage of your revenue that comes from the top 10% of your accounts by revenue.

Repeat Purchase Rate

The percentage of customers who make more than one purchase.

Revenue By Customer Segment

Revenue by type of customer. For example, the percentage of your revenue that comes from corporate as opposed to individual customers.

Revenue By Satisfaction

The percentage of revenue that comes from your top 20% most satisfied customers. May highlight the value of customer satisfaction improvement initiatives.

Revenue Per Customer

The average gross or net revenue per customer for a period of time.

Share Of Wallet

The percentage of customer spend on a particular category of goods and services that goes to your company. For example, the percentage of your customer's annual shoe budget that goes to your shoes.
Overview: Customer Metrics
Techniques for measuring the value of customers to you and your value to them.
Related Concepts

Marketing Metrics

This is the complete list of articles we have written about marketing metrics.
Brand Awareness
Brand Recognition
Churn Rate
Conversion Rate
Cost Per Lead
Acquisition Cost
Experience Score
Lifetime Value
Customer Metrics
Penetration Rate
Market Share
Wallet Share
More ...
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