Are You Playing Darts in the Dark?



"Are You Playing Darts in the Dark?"

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Hitting the target blindly, without following any strategy will not assure you of the right customer or client. Therefore, the following things come into the picture:

  • Performance Measurement process
  • Metrics Framework

Performance Measurement Process is a method of collecting, analyzing, and reporting performance-related information. Metrics Framework is a method of structuring key performance indicators (KPIs) around strategy, goals, and objectives.

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The Performance Measurement Process can be developed by following certain steps. They are:

  • Listing the priorities
  • What will be the performance measures?
  • Setting the baseline
  • Evaluating the performance
  • Reporting of results
  • Modifying the plan (if there is the scope of improvement)
  • Monitoring the performance

Along with tracking the performance of employees, teams, and companies, it is also very important to have a look at what customers want. One cannot deny that customers (be its B2B or B2C) are the only reason for growth. Therefore, the measurement of customer performance indicators is equally important as measuring key performance indicators of the company.

Importance of CPIs along with KPIs

Gene Cornfield (lead Accenture’s work in customer experience transformation for technology companies globally at Accenture Interactive) has pointed out the importance of CPIs along with KPIs in one of his article published in Harvard Business Review:

  •  He explained how customer-centric key performance indicators are important and must be measured along with company-centric key performance indicators.
  • He suggested that the more company is CPIs focused as compared to KPIs, the more will the company grows.
  • Any group of companies (sales, marketing, development, etc) that is in touch with customers or clients can use CPIs. 
  • Every CPIs has some impact on KPIs.
  • A well-performing company against CPIs is also showing good results in achieving their KPIs.
  • Today, many companies are becoming customer-centric by focusing on CPIs.

Gene has also explained the two elements to distinguish CPIs and KPIs as:

  • It must be an outcome that is important to the customers.
  • CPI shall be measurable in increments that Customers truly value.


In order to judge the success of the company, the measurement of customer performance, service, and satisfaction are necessary. One of the key performance indicators to measure customer satisfaction is CSAT.

CSAT is a measurement of the degree to which customers are satisfied. The measured value is expressed as the CSAT score. It is easy to find customers who are unhappy or less satisfied by analyzing CSAT scores and accordingly companies can improve their performance.

Companies can run surveys to calculate the CSAT scores. Post-service surveys, in-app surveys, and email surveys are easy ways to approach customers and analyze their satisfaction. In short, customer feedback is the easiest method to find CSAT.

Bill Price (President, Driva Solutions; Co-Founder, LimeBridge; Chair, Global Operations Council; Advisor, CustomerThink) once said “Customer satisfaction is everything. Measuring customer satisfaction is hard”.  He suggested a few things to measure customer satisfaction by asking customers after their interaction with a support person of the company:

  • Whether they are satisfied with the service or not?
  •  Would they hire the person who has supported them? Do they felt compel or positive?

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Customer Retention

Retaining a paying customer is another important factor for companies. Attracting customers is one thing and retaining them for a longer period of time is another. The calculation of Customer Retention Rate is also necessary to analyze the performance of the company. 

Customer Retention Rate = ((Number of customers at the end of period – Number of new customers acquired during the period) / Number of customers at the start of the period,)) x 100

Customer satisfaction is an important factor in building brand loyalty. A loyal customer can be converted into a brand ambassador which means more business.

“Attracting new customers involves cost and retaining old customers involves good service. So, work on strategy and play tactfully” 

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  1. i think CRR is a more reliable way to calculate customer satisfaction than CSAT,

    1. Thanks for sharing. Will find more details on this.

  2. Wow wonderfully written.Very true customer retention is actually the first priority which makes a loyal base.


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