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Important customer data metrics

Customer data metrics is very important. Supreme decisions are made based on data.

Some customer data metrics that are critical to monitor:

  • Customer lifetime value (CLV). This metric can inform a huge range of business decisions. To find your CLV, start by determining your average purchase value and subtracting from it average purchase frequency rate. Then multiply that customer value by the average customer lifespan to determine customer lifetime value.
  • Customer churn. Monitor customer dissatisfaction. Look at customer churn, which describes the rate at which customers stop doing business with you. Calculate churn rate by dividing the number of customers lost in a given period with the number of customers that you started the period with. A churn event is obvious for subscription-based businesses.
  • Cost of retention. When a customer is at risk of churn, you should invest in retaining them. The cost of retaining a customer includes everything from the customer success team’s time to the technology used to do so to the advocacy materials prepared for the purpose.
  • Monthly ticket volume. A jump in support tickets could signal that a new feature isn’t functioning properly. It could also be due to an influx of new users. To reduce ticket volume, invest more in customer success.
  • Net promoter score. NPS scores classify customers as detractors, passives, and promoters based on their zero to 10 ranking. Detractors — that is, the individuals who responded with a zero through six from the percentage of promoters. Those who ranked you a nine or 10. If, for instance, 60 percent of respondents were promoters and 8 percent were detractors, your NPS is 52.

Data driven decisions may not always be the right, but they have a better track record than those made by the intuition.

If you need any help with AdWords, or in Analytics then please get in contact with us here at Network Intellect.

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