https://RonKaufman.com/Subscribe
Revenue, profitability, profit margins, customer satisfaction, retention rate, lifetime value – those are all vital metrics to tell you how the business is performing. But here’s the problem – they’re all based on lagging indicators. That means if you’re not on track to hit your targets… you might not know until after the results are in. And that makes it very hard to course correct.
So what’s the solution? Leading indicators. These are the metrics that tell you right now if you’re headed in the right direction. Leading indicators are especially tricky when it comes to customers service. All the most common metrics – net promoter scores, satisfaction ratings, customer effort scores, churn rates – are lagging indicators.
So what are the leading indicators that tell you whether your team’s customer service improvements will boost the organization’s bottom line?
That’s what I share in this video.
Take a look, and let me know:
Join the community and receive free resources, ideas, and invitations.
Below is an Autogenerated Transcript
How would you know if your culture of excellence in service is getting stronger? What can we measure and track that will let us know that the culture at ABC of getting better and better and better and better and better is actually working? How many of you saw Tom Cruise in the movie Jerry Maguire? Do you remember that famous scene when he’s holding the phone and he’s yelling into the phone? “Show me the money.”
Top line, revenue. Bottom line, profit. Share of market, share of wallet. Shareholder value, sir. The problem with these measures is that they are lagging. They come after all the service you provide. They’re valid, but they come late. So what would be a leading indicator that will let us know we’re going to get the money?
Well, that would be shown by our scores. Satisfaction score, employee engagement score, loyalty index. If they’re all going up, you’re going to make the money. But you don’t do that every day. You don’t sit there and look at those reports all the time. So what would be a leading indicator that would let you know that right now, right now, right now, right now we’re doing better? Right now, right now we’re doing better?
Ah, that would be feedback, compliments, five star review. Online, “Attaboy.” Thumbs up. “Dear branch manager, I want to compliment.” “Dear CEO. Your person took such good care of me. ”If you’re getting a lot of compliments, that’s going to show up in your survey, which will show up in your financials.
Now, Now, how do you get a compliment? ABC Leadership, come on. ABC 2017 Dubai. How do you get a compliment? You do not get a compliment if you only do what was Expected You’re not going to get a compliment by doing what you’re already supposed to do. Somebody has to come up with an idea that would serve someone else better, create more value. And the idea is not enough. You’ve got to put the idea into action.
