Metrics That Matter 2014: How to analyze Customer Satisfaction as a Performance Measure

April 21, 2014  
How important is customer satisfaction to IT Service Providers? Very important. In the 2014 IT Service Provider Benchmarking Survey, ITSPs ranked customer satisfaction as the number one way they measure the health of their businesses.

Top 3 Measures of Business Health
1.    Customer Satisfaction
2.    Profitability By Customer
3.    Profitability By Contract

It makes sense. If customers aren’t happy, they’ll move on to another vendor and take their money with them. Losing customers also hits profit margin hard because replacement revenue from new clients costs four to seven times more than growing sales organically with existing clients.

Revenue and profits—what company doesn’t want more of these? Customer satisfaction should be a top priority, but making it so takes more than sending out surveys.

Feedback should be quantifiable and actionable.

Quantifiable: Is the feedback integrated into metrics for individual and organizational performance? Can employees view it in real time on a dashboard? Does the reporting format make it easy to spot trends early on so that you can quickly address problems or beef up in-demand offerings?

It seems unimaginable that a business doesn’t quantify revenues and profits, yet customer satisfaction often gets less attention. Only half of the ITSPs who responded to the 2014 IT Service Provider Benchmarking Survey use an automated survey for customer feedback, a prerequisite to having all of the capabilities listed above.

Actionable: The second point often overlooked with customer feedback is that it should prompt action, and not just a scramble to keep a dissatisfied client on board. If fed into an integrated business management platform, the feedback can be used to drive resource allocation, project prioritization and forward-looking business planning.

Customer satisfaction isn’t just about getting good reviews from your clients. It’s about getting great information about your business. If your customer survey processes don’t yield quantifiable, actionable data, then you aren’t optimizing the opportunity.

Download the free Metrics That Matter eBook and infographic to see what your peers are reporting for 2014.
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