Key Results Areas (Part II) and Customer Satisfaction

In the first article in the series we introduced the idea of Key Results Areas. In this second article, we will discuss how to use them to help with business growth. We will use “customer satisfaction” as our area of interest. Satisfied customers are, of course, a prerequisite for successful growth. Effective business growth demands, for example, that:

  • Existing customers and clients continue to buy.
  • They want to buy more, whether more of the same or of new products and services.
  • New customers and clients begin to, and continue to, buy.
  • Returns and cancellations are minimized.

All of these areas come under the broad-brush category we call “customer satisfaction.” Within these areas businesses can find measurable results that reflect performance within those Key Results Areas (KRAs). Those results provide information the business can use both to measure the success of current growth and the likely success of future planned growth.

In this article we will discuss some valid ways to see those results. We call them Key Performance Indicators (KPIs). The KPIs we will look at are, obviously, samples. They may or may not be directly valid for every business, but they will help to explore the idea, for your own business growth planning.

Numbers, KPIs and Customer Satisfaction

You want customer satisfaction ratings to be 100%. You can learn how your customers and clients rate your business’s performance by monitoring the ratings. Then you can decide, what you and your team members should do to keep the scores going up. You can choose KPIs such as:

On-time Delivery: This can include everything from appointment times being kept to product delivery schedules being achieved.

Right the First Time: What percentage of products or processes, etc., never fail compared to those that do? Are there common factors to work on that will remove those problems, rather than treating each failure as a separate issue?

Problem Solution Times: When there is a fault, problem or complaint, how long does it take to respond, and how long to resolve? Are errors discovered by your team or by the customer? Do errors originate in the same department, caused by the same process or a common component? When you know these answers you can decide how to deal with them.

Customer Retention Rates: What percentage of your customers continue to buy? How many reduce the size of future orders, go elsewhere or fail to reorder a particular product, even though they buy other products from you?

Comparison with Industry Norms: By using your particular KPIs you can compare your business’s performance with the industry and with specific competitors.

The Take-Away

While “customer satisfaction” is a broad-brush area, you can drill down by using KPIs to focus on products, processes, functions, team performance, and individual tram member performance. When you know the detailed facts, you can respond efficiently and effectively. Your business will grow more steadily when you eliminate error and shortfall, eliminate returned products, and minimize lost customers.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more valuable articles to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.

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