Providing good customer service is essential to the success and profitability of a business. For this reason, the customer service and customer success processes are so important. And what is the difference between them?
- O Customer Service is the action of offering service and technical support.
- O Customer Success is finding ways to guarantee the success of the customer's journey with the brand, it is something more comprehensive, and that encompasses customer service.
Both strategies are equally important and can be measured.
In this environment it is also common to talk about Customer Experience, which is nothing more than taking care of the customer experience throughout the period of involvement with the brand, as a satisfied customer becomes a promoter of the brand.
The importance of service metrics
Ensuring good service through the analysis of metrics and problem management is a way to avoid losing money.
Research shows that the cost of acquiring a new customer can be 5 times higher than the total spent on retaining a current one. However, each company must calculate the CAC individually to know its own reality, since this data can vary tremendously from one business to another.
This customer acquisition cost calculation is simple:
- Sum up all investments to acquire customers
- Divide by the number of new customers in a given period
For example, in two months the company invested a total of R $ 10,000 and gained 5 new customers, the CAC is R $ 2,000.
Another crucial point is the Lifetime Value (LTV) of each contract which, according to Digitais do Marketing, means: “forecast of the returns to be made by a consumer during his lifetime as an active customer in the consumption base of services or products of a company, taking into account the costs inherent to these operations”.
In other words, LTV is the financial return of a customer during the time it is served by the brand. This is a very important metric, because depending on the time that a person remains in the customer portfolio, it may be that they bring losses.
For example: Imagine that it takes 12 months for a customer to make a financial return on the cost of purchasing it. If the contract is canceled before 12 months, your brand will have a loss.
Therefore, it is essential to create actions to ensure that customers stay as long as possible. And how to do that?
Creating ways to measure each stage of interaction in the post-sale customer journey, that is, basic metrics that must be analyzed - and treated - to increase customer retention and, consequently, LTV.
Essential metrics for customer success
Now you know that, in addition to the initial achievement, it is important to maintain customer care as a priority. Some metrics that can help with scenario analysis and ensure customer success are:
This is the first contact that the customer has with the support right after the purchase, that is, it is time to impress and train. Think that the more training the customer has, the less likely they are to have problems in the near future.
It is also the time to be didactic and show organization. It may be difficult to quantify the quality of an onboarding, but it is possible to create flows and checklists to be followed in order to guarantee the initial quality.
- Determine and comply with a minimum onboarding time;
- Create email trails and evaluate how many were opened by the client;
- Check how many sessions the customer has opened within the onboarding period.
2. Engagement and Adoption
These metrics are complementary, since the customer who really engages with a solution, will seek to understand the use and the adoption will be natural. The important thing is to define which criteria are considered bad, good and excellent during the process.
In the case of engagement, it is practical to define criteria related to the number of accesses, total functionalities used, etc. This point allows us to understand who are the people who use the product / service and who needs more stimuli to use them.
Engaged customers are more open to suggestions for new functions and the possibility of cross-selling, for example.
The adoption is already a bit more complicated to be measured numerically, but it can be done according to the number of features the customer uses versus what is available. The number of questions sent regularly can also be an adoption metric.
It is essential to see a customer with doubts as someone interested and as a business opportunity.
3. Tick Support Tickets
Customer Service is an essential part of measuring customer success, because through open tickets the company can understand what are the frequent doubts, difficulties and even system bugs.
It is a way to understand both the customer's interest in the product, how to evaluate total tickets, response time, severity of the problem, etc.
Within this category, it is relevant to evaluate the First Contact Resolution KPI, which determines the resolution time for the first ticket sent by a customer. This first contact can be crucial for the future of the partnership.
At this point, automation with artificial intelligence helps a lot, or rather, it solves the problem of service delay. AI's ability to collect, classify and respond, speeds up service and guarantees quick and humanized responses.
4. NPS and Customer Service Feedback
The Net Promoter Score (NPS) is a customer satisfaction survey to measure their loyalty to the company. It was created in 2003 by Fred Reichheld, a business strategist with extensive consulting experience.
The metric is simple and based on just one question: would you recommend the company to a friend or colleague?
Answers range from 0 to 10, and customers are categorized into:
- Promotores: respostas 9 ou 10. answers 9 or 10. They are people enthusiastic about the service.
- Neutral: answers 7 or 8. They are satisfied, but not enough to promote the brand.
- Detractors: answers from 0 to 6. These are considered as not satisfied and with the risk of not buying from the brand again, or discouraging others from buying.
From this, it is possible to create actions to alleviate problems with detractors and increase the positive view of neutrals and promoters.
Still, as part of feedback, it is important to hear what customer service agents have to say. It is not something quantitative, but it has value for strategic actions of contract renewal, up-sell or cross-sell.
Upsell is that attempt to sell something more, and it is a good metric for the sales team. In our daily lives, this is when the fast food attendant asks if you would like big potatoes for an additional one, for example.
In the business world, upsell is the increase in the average ticket for a given customer, that is, getting him to hire something beyond what he is looking for.
It is important to know the right time to approach a customer to try to make that sale. Customers who are late in payment, for example, are not good targets.
Some metrics that can be tracked:
- Companies up to date with payments versus in arrears;
- Customer using a number y of functions;
- Who is engaged, according to predefined metrics;
- Time as a customer.
This metric scares any salesperson because it is the number of cancellations, that is, it is the loss of customers and profit. It is the total percentage of customers who stopped buying from your company in a given period and directly impacts the business's revenue.
Unfortunately, it is inevitable to lose customers. No matter how much effort the company makes, sometimes some people are persuaded by other businesses or simply give up on a product or service. Therefore, the ideal is to have a minimum churn target, and that it is based on a historical data.
For example, calculate the company's turnover rate in the last year and determine a lower figure for the next planning. Experts say that an ideal rate is around 5%.
In short, it is essential to create a customer-oriented culture that supports you from the beginning of the sale and encourages ways to improve their experience. Automation through the use of artificial intelligence is a suitable option for customer service, as it can be integrated into several channels, such as social networks, WhatsApp, email, and SMS, which ensures agility, humanization, and problem-solving.