When you start building your first version of Customer Asset Metrics, all the data may not be perfectly lined up or organized.
Establish your first version of the growth or loss of your customer asset and key customer behaviors to watch — using the data you have now. The key is to begin. Then evolve from there. Don’t wait until the systems are all perfect. We almost always have to start asset metrics with at least partial manual manipulation of data.
The purpose is to shift to a simple understanding and measurement of success when a company achieves customer-driven growth.
What Do Customer Asset Metrics Measure?
Customer Asset Metrics track what customers actually did versus translating (and debating) what customers say they might do via survey results. No regression analysis by survey question, or debating results required. The company either grew the customer asset as a result of the experience delivered, or it did not. As leaders learn and embrace these metrics, their demand for improvement will rival their demand for meeting sales goals and revenue targets.
Customer Asset Metrics build passion across the organization and establish a rallying cry for leaders
Leaders need to make the connection between customer experience improvement and the movement of these metrics. Customer Asset Metrics create a way for executives to know about the “shifting behavior within the customer base,” which indicates if the bond with is growing or shrinking.
Rather than talking about customer retention, begin each meeting discussing the raw numbers of:
- New customers earned in this period, volume and value (power of your acquisition engine). Sorted by segment.
- Lost or lapsed customers lost this period, volume and value (power of the experience and value perceived). How many increased their purchases? How many declined in their level of engagement? Sorted by segment.
- Behavioral patterns that show increase or weakening of the customer relationships.
- Movement of customers within value segments.
- Referrals from existing customers.