Keeping a watch over your progress is the initial step to make strategic efforts for improvement. The more efficiently you address your customers’ requirements, the longer you can retain them. In this article at Tech Bullion, learn about customer retention metrics to monitor and make efforts for improvement. Modern consumers, especially millennials and Gen Z, are impulsive buyers. One bad experience, and you can lose them forever.
KPIs to Sustain Customers
According to a PwC Future of Customer Experience study, about 32 percent of customers stop investing in a brand after having a bad experience. So, use these metrics to measure what is working well and which areas need improvement:
Customer Churn Rate
This metric helps analyze the number of consumers that have entirely stopped purchasing your products or services. To calculate customer churn rate, divide the range of customer churn in a certain period by the total number of consumers you initially had.
Repeat Purchase Probability
The possibility of a customers repurchasing the same products or services is high only when they are happy with the outcome. You can calculate RPP by keeping track of the monthly, quarterly, or yearly business transactions. To sum it up, divide the range of assets purchased by the customer in a period by the total number of buyers.
This is the rate of loyalty points or rewards that customers redeem. A higher redemption rate implies active consumer engagement in the venture. You can calculate the redemption rate by dividing the number of points redeemed by the range of revenue growth.
Average Order Value
The dollar amount of purchases made by your loyal customers for each order also signifies profitability. To calculate AOV, divide the revenue for a specific period by the number of orders for the same duration.
Profitability Per Order
This measures the operational cost to successfully deliver a product. You earn profit only if there is a surplus amount to reduce expenses. Profitability per order helps you measure the surplus you generate. So, calculate it by multiplying the overall revenue with the average profit margin and divide it by the number of orders.
Click on the following link to acquire more knowledge about revenue maximization metrics for customer retention: https://techbullion.com/7-key-customer-retention-metrics-that-every-marketer-must-track/