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What are Customer Metrics and Why do I Need Them?


dreamstime 9459691 metricsCustomer metrics are buzzwords in the business world that have been getting plenty of attention in recent years. In simplest terms, customer metrics are simply measurements used to gauge the customer – whether for loyalty and retention, marketing or new product development. There are many different types of customer metrics used today, but not all of them will benefit all companies their customer service endeavors. It is important to understand the precise purpose of customer metrics, as well as the various options available, to help companies target their research to their specific service needs.

Types of Customer Metrics

There are a number of customer metrics used by businesses today, including:

Customer Loyalty

One of the best metrics used by customer service managers, customer loyalty metrics lets you know a customer’s tendency to choose your business, product or service over another. Loyal customers are the bread and butter of most companies today. They not only bring your repeat business, but they also expand your customer base through word-of-mouth advertising. There are numerous ways to measure customer loyalty, including satisfaction surveys and telephone interviews to solicit customer feedback.

Customer Value

This metric specifically looks at the value a customer places on your business. Value usually consists of an equation that includes price, service and quality in its variables. This type of metric looks directly at how customers view your business vs. your competition and provides you with valuable information on what you might need to adjust in terms of both product and service quality, as well as price, to build customer loyalty in your own company. While this metric doesn’t only apply to customer service, service is certainly a factor in the value equation that must be carefully evaluated.


Most customer service managers tend to like this particular metric because it is one of the easiest to measure. Conversions refer to potential customers who become actual customers, which is particularly important for online businesses. Conversion rates are relatively objective and easy to track, with the right technology in place. You can also track conversion rates in your office, by totaling the number of people who come into your business and the number of products and services actually sold to those individuals.

Call Center

Call center metrics offer precise information as to where your call center needs to improve to offer a higher level of service overall. These metrics may be very easy to analyze, dealing with data like the number of calls answered, time customers spend on hold and number of calls required for resolution. These numbers can open the door for creative solutions in your call center that help you raise your standard of service to a new level. Call center metrics may be especially important for your customer service quality because it helps you see very specific areas where your department needs to improve.

No matter what sort of customer metrics you choose, gathering data about your customers and your service quality can help you improve your customer service in the future. While it may seem like a lot of work to get these metrics in place, the information they provide may prove invaluable in your endeavor to take your service to the next level.

- Meredith Estep


It is important to review the metrics that you are reviewing on a regular basis to ensure that they are still applicable to your service model.
Posted @ Tuesday, June 05, 2012 11:44 AM by Melissa
Sending out satisfaction surveys is a great way to measure your customer loyalty metric.
Posted @ Tuesday, June 05, 2012 12:26 PM by Lisa
The Customer is the most important part of a business so it is very important to understand where you stand with customers via customer metrics.
Posted @ Tuesday, June 05, 2012 12:32 PM by Matt
For a company to continually grow, it is important to measure customer metrics. You need to know as a business where you stand in order to improve!
Posted @ Tuesday, June 05, 2012 2:10 PM by Jenny
Using these metrics is a great way to tell where your company needs to grow!
Posted @ Tuesday, June 05, 2012 2:18 PM by Amanda
Do not forget Customer Loyalty Metrics as "loyal customers are the bread and butter of most companies today.:
Posted @ Tuesday, June 05, 2012 3:46 PM by Britt
Great article with fantastic ideas for measuring customer loyalty!!
Posted @ Tuesday, June 05, 2012 3:57 PM by Jana
The quality of service CSR’s provides to customers impacts your business in a positive or negative manner. A call center metrics is a necessity for a customer service department. This will ensure the CSR’s are providing the highest quality level of service to every customer!
Posted @ Tuesday, June 05, 2012 4:03 PM by Jenny W.
It's always important to know where you stand.
Posted @ Tuesday, June 05, 2012 4:15 PM by Kristy
Understanding you customer is so important to providing the service they will value.
Posted @ Wednesday, June 06, 2012 8:01 AM by Stacy
Great point, Stacy. You ability to understand the needs of the customer and provide them with adequate service will determine the level of loyalty from the customer!
Posted @ Wednesday, June 06, 2012 9:07 AM by Courtney
Great tips! It is very important to always know where you and your customers stand so you can provide them the best service!
Posted @ Thursday, June 07, 2012 1:47 PM by Mandi
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