The numerical representation of the feedback from the customers and the sentiment analysis is defined as customer relationship metrics. As the name indicates, it’s about converting a completely subjective article into numerical figures which, of course, requires extensive research along with the sound and credible knowledge of the sentiment analysis and customers’ feedback results.
The CRM metrics can be of two types: a) based on customer ratings based on the open-ended comments by the customers. The first strategy involves the analysis of average rate of satisfaction with the product’s quality and the second one employs the sentiment analysis.
The credibility and decency of a metric depends upon the factor that what it measures and what it does not measure. If the definition is blurred or vague then you might not be able to see what you want to see. The clear definition of a metric is important for it pinpoints the areas of your business requiring immediate attention and enables you to fill up the room for improvement.
There is a well-defined method of calculation of a metric that includes all the items as well as their pattern of combination. The method is reliable and valid and makes sure that a metric only measures what it is supposed to measure. A good customer relationship metric is helpful in introducing real time internal changes in your organization i.e. improved marketing, sale and services and these changes ultimately translate into improved revenue and decreased input.
The process of developing a good metric is very intricate as well as exhausting and costs much to the organizations but it cannot be ignored since you need to stay updated about your position in the market along with the customers’ view of your product. Without it you may not be able to reap the anticipated benefits from your business and an outdated business with an ineffective customer relationship management strategy is more likely to lag behind especially in the highly competitive and fast-paced markets of today.
However, apart from measuring the metrics in a traditional way, there are some other tools as well that help you get it right with lesser effort and equal credibility. CRM software being one of them enables you to develop and calculate your metrics with no fuss at all and with guaranteed credibility. The basic tool you need to have a credible insight into the customer metrics is the business intelligence system and a good CRM software constitutes a complete set of features allowing you to know about the stages of your sales and the probability of closing successful deals.
A very important part of your marketing planning and strategy is to find out which of your marketing tools are contributing to the growth of revenue and which ones are not producing the desired ROI. Once the stats are exhibited you become free to decide which tools you should keep and invest more into and which ones you would rather do without.
The feedback system of a company however is a different domain and CRM software helps facilitate it by providing a communication system ensuring the smooth flow of communication and makes the execution of best business practices like encouraging customers to provide feedback, possible. The feedback can be used to define and develop the standard metrics as discussed above using the business intelligence system like reports and success probabilities.
Customer satisfaction is no longer an “option” for the business persons; it has become mandatory given the competition in the markets across the globe. Now serving mere quality products is not enough to satisfy your customers since they demand something more now and that you can provide them in the form of outstanding customer service.