The answer lies in focusing on the following 5 customer experience KPIs . With these indicators, leaders can provide tangible and measurable benefits to improve profitability:
Customer Retention Rate (CRR)
Customer Retention Costs (CRC)
Customer Lifetime Value (CLV)
Net Promoter Score (NPS)
Customer Satisfaction Score (CSAT)
Ready to transform your strategy and improve jordan whatsapp number data 5 million with actionable data? Let’s explore what these metrics are, why they’re critical, and most importantly, how you can improve each of them.
Read on to discover how these KPIs can revolutionize your approach to customer experience and boost your business’ profitability .
1. Customer Retention Rate (CRR): The Key Metric to Improve Profitability
What is customer retention rate?
Customer retention rate (CRR) measures the number of customers a company retains over a specific period. This metric is critical for customer experience leaders as it helps determine the level of satisfaction and loyalty of their customer base.
You may be interested in: 5 customer retention strategies that really work
How is CRR calculated?
The formula for calculating CRR is:
Formula components:
Customers at the end of the period
It refers to the total number of clients you have at the end of the measurement period.
For example: If as of December 31 you have 1,200 active clients
New clients
These are the customers acquired during the measurement period.
For example: If during the year you got 300 new clients
Clients at the beginning of the period
It is the total number of clients with whom you started the period
For example: If on January 1 you had 1,000 customers
Practical example:
Let's assume these data for one year:
Customers at start: 1,000
Clients at the end: 1,200
New customers: 300
Applying the formula:
CRR = ((1,200 - 300) ÷ 1,000) × 100
CRR = (900 ÷ 1,000) × 100
CRR = 0.9 × 100
CRR = 90%
This means that you have retained 90% of your original customers over the period, which is an excellent indicator of customer satisfaction and loyalty.
Why is it important to improve profitability?
Improving customer retention not only demonstrates the effectiveness of your customer experience initiatives, but also directly impacts business profitability :
A 5% increase in retention can increase company revenue by 25-95%
A 10% increase in retention results in a 30% increase in company value
Loyal and repeat customers spend on average 33% more than new customers
65 % of business comes from existing customers
This metric clearly demonstrates how investment in customer experience directly translates into improved financial results, helping you justify and optimize your CX strategies to maximize profitability .
5 Effective Tips to Improve CRR:
Self-service within everyone's reach : Companies that offer self-service options achieve 85% higher retention. Implement a portal where customers can manage their accounts, access resources, and resolve questions without waiting.
Personalization that connects : Create unique experiences by adapting communication and offers to each customer's profile. Use data to understand their needs and anticipate them, making them feel truly valued.
Support that surprises : Go beyond basic support. Train your team to solve problems proactively and efficiently. Establish fast response times and maintain transparent communication at all times.
Rewarded loyalty : Develop a loyalty program that truly delivers value. It's not just about points, but about creating exclusive benefits that make your customers feel special and want to stay.
Feedback in action : Actively listen to your customers and act on their feedback. Implement improvements based on their suggestions and communicate how their opinions are helping to create a better service.
Key Fact : Companies that consistently implement these strategies see significant increases in their CRR, improving their profitability by up to 95%.