The organizations that claim to be customer-oriented must also measure their customer performance indicators to meet customer’s expectations. In this article at Harvard Business Review, Gene Cornfield explains that customers play a significant role in boosting business growth.
CPIs Vs. KPIs
By optimizing CPIs, growth prediction becomes easier. Speed is crucial to attend and address customer queries.
The CPI metric indicates the expectation of customers to meet incremental changes like time, ease, options, or budget cut down, etc. These additional adjustments are valuable to customers.
Key performance indicators (KPIs) are the observation of employee’s performance. KPIs decide the annual incentives and annual productivity of the staff. Most of the employees are accountable for CPIs, which motivates them to fulfill their customer’s expectations. You can say, CPI is a shared interest of employees and customers alike.
Many organizations repeat these common mistakes while defining their CPIs that you must avoid:
- Do not adopt CPIs from other companies as their focus must be different from what you may wish to offer your customers.
- Do not rely on the expert’s judgment that they understand customers. Often it is based on the feedback from internal resources, which may not suffice the purpose of CPI.
The most reliable approach to identifying CPIs is a background check, feedback, and ‘ethnographic’ research based on the observation of trained researchers. They are capable of withdrawing customer’s behavior, expectations, dislikes, and desires.
Collaborate CPIs and KPIs
As you recognize the CPIs, the best approach would be to measure and look for a collaborative approach to influence your KPIs. By establishing a secure connection between the CPIs and KPI, you can influence experiments feasible for business growth. These experiments will help you outperform competitors.
Click on the following link to read the original article: https://hbr.org/2020/04/the-most-important-metrics-youre-not-tracking-yet?referral=03759&cm_vc=rr_item_page.bottom