Killer Analytics: Top 20 Metrics Missing from your Balance Sheet

Chapter 10

The Customer Engagement Index

WHY AN ORGANIZATION MIGHT TRACK THIS

Questions Answered

• Do we have customers with desirable characteristics?
• What is their level of relationship with our products, services, people, and company?
• What is the probability that customers will be loyal?
• Do we have any customers we would be better off without?
• Are we executing plans to manage the relationships with our customers?
• Do our CRM plans help or hurt relationships with customers?

Why Is This Information Important?

Organizations spend a fortune on advertising and marketing to attract new customers. They think nothing of dropping a couple of hundred thousand for a trade show booth or a couple of million for a Super Bowl commercial, but spend as little as they can to keep the customers they already have happy. Store employees are bothered when you ask for help, and they know nothing about the products they are selling.

Measuring and managing a relationship with a customer is a delicate process, and following a script and employing a one-size-fits-all approach pretty much guarantees that you will alienate a large portion of your customer base. Being able to measure the level of engagement of each of your customers is important. Each new transaction, order, or experience with someone from your company is an opportunity to improve or degrade the relationship. One big problem can ruin a long history of someone being a loyal customer, and that person probably won’t fill out a survey before ...