We live and breathe metrics. Your car speedometer, your watch reminding you to take more steps, or even tracking how many hours of sleep you’ve managed to knock out. Businesses are no different and get similarly swamped with data points. But in a world with arguably too much data, the real challenge is knowing what to focus on. And that’s before trying to get everyone to agree on the same key performance indicators (KPIs).
For digital leaders, balancing customer experience (CX) and revenue growth requires KPIs that align with long term business goals. Let’s explore how to fight KPI paralysis with a little creativity.
You already know all about the fundamental KPIs. Metrics like Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and customer lifetime value (CLV) offer valuable insights into the customer journey. However, the relationship with these can be superficial. Reliance on these alone can distract from the wider picture of your customer experience.
Digital KPIs, such as cart conversion %, cart abandon %, and abandon cart revenue, offer real-time insights into customer interactions on digital platforms.
However, successful brands have evolved from purely transactional KPIs to those that help build long term brand equity. By capturing the ‘why’ behind customer behaviour with customised KPIs, leaders can develop a holistic view of customer experience and make decisions that resonate with long term growth.
Firstly, all CX programme activity should be tied back to improving a business objective, so let’s identify a strategic initiative for the digital team for example, increase online cart conversion by 1%.
Next, how would we measure the success of online cart conversion? By using KPIs such as: cart conversion %, cart abandon % and abandon cart revenue. However, this does not tell us the full story.
We’re missing the ’why’ behind the failed conversion. This is where we need additional information from the customer such as ‘how was the digital experience for purchasers?’, and ‘why did customers abandon their cart?’
The only way to solve these mysteries is to ask. We can catch customers in the moment (for example with the post-cart completion or upon abandonment), with a 5-second on-screen survey or email. Check in on their experience and start painting the background to the KPI picture.
There’s then no point asking unless you’re going to do something with the data. To kick off from the start line, ensure your internal teams and other stakeholders understand the ‘what’ (cart abandon %), ‘why’ (long checkout process) and size (potential revenue lost) of each blocker. Priorities for improvement can be drawn up, all with your customers’ feedback and needs in sharp focus.
It’s been done before.
Overcoming KPI paralysis might take a bit of work, but the rewards are rich. Australian real estate group Ray White challenged itself with creating a CX program that reflected its market position. Faced with the shallow pool of NPS Data, it started looking for richer customer insights.
Ray White started by gathering real time authentic customer feedback to add flesh to the KPI bones — at all stages of the customer journey with automated surveys. Through its mobile app, “Ray White Listen” agents could engage with feedback in real time, improving its understanding of customer needs and expectations. By increasing accessibility and creating a gamified experience, the app motivated agents to act, enhancing the overall customer experience.
The results speak for themselves: over 13,000 survey invitations were sent each month, and 3,000 customer testimonials have been generated and shared. Ray White’s revamped CX programme now ensures that customers are heard, KPIs have a ‘why’ and feedback is directly influencing how the business delivers its services.
It’s easy to get swept away in the rapids of metrics, charts, and percentages. The real challenge for digital leaders is not just tracking data but finding and focusing on the KPIs that matter — those that not only measure success, but with a little listening and teamwork drive meaningful, long term growth. These can’t simply be pulled from Google; they need a deep understanding of the challenges at hand.
It’s time to aim higher than vanity metrics that may dazzle but do little to strengthen customer relationships or build lasting brand equity. Remember, the major league players are those who constantly refine their metrics, prioritise actionable insights, and adapt their strategies to meet the ever-evolving needs of their customers. The next race is always just around the corner — make sure your brand is ready to win it.