Key performance indicator has become a buzzword in a wide range of industries
Companies are continually updating practices so that they can track key performance indicators (KPIs) to improve their business and make better connections with customers. Metrics matter.
But as Stephen Spiegel, CEO of Crewhu, says, “KPIs are worthless unless you have a vital process behind them.”
So how do you go beyond KPIs? Here’s how to focus more on building processes that are driven by those valuable KPIs you track.
Defining what makes a good KPI
KPIs are measurements of success that need to be evaluated daily. These metrics help teams rally around a number together, increasing collaboration and creating more meaningful celebrations when milestones are reached.
KPIs allow companies to see where they’re failing and where they’re succeeding. KPIs should answer questions like, where do we need to hire? What areas of the business need improvement?
KPIs need to be updated and added, especially as processes improve and benchmarks are met or exceeded. Good KPIs allow for continuous improvement and acceptance of change. Instead of looking at your KPIs as static, remember that you’re on a journey.
“It’s not about getting to the finish line,” says Crewhu’s CEO, Stephen Spiegel. “It’s about improving every day.”
This kind of continuous improvement requires that each employee has their own KPIs so they can compare their current performance with previous metrics. How have things changed in the last month? Year? Five years? Are they improving as individuals and improving how the business operates?
We are always evolving, and KPIs need to reflect that. Otherwise, you’ll just be repeating the same thing over and over, wondering why the outcomes aren’t changing. Each company department should have unique KPIs, including operations, marketing, sales, the leadership team, and more.
How to build the right KPI processes
Tracking KPIs can feel a lot like goal setting. You can set both personal and business goals and monitor your progress. But a KPI is how you define the process that drives you toward reaching your goals, so you must outline the steps behind each KPI. A KPI on its own means nothing.
To create KPI-driven processes, take the KPI test. Make sure you know the answer to the following questions:
- Who is accountable?
- What are the steps?
- Where is the organization impacted?
- When is the process triggered?
- Why are you measuring this number?
- How do you measure successes and failures?
When you can answer these questions, you can understand whether an employee, customer, or process is behind a KPI, like customer feedback. And once you know the cause, you can focus on the outcome that the feedback leads to, whether a celebration, additional training, or improving processes.
Asking these questions leads to better processes that will get you closer to your business goals.
KPI-driven processes for customer satisfaction ratings
When dealing with customer satisfaction ratings, specific steps must be set for negative, neutral, and positive ratings.
It should be clear which parts of the business are most impacted by these ratings. And there should be a process triggered as soon as someone answers or ends a ticket.
Ask: Who is responsible for that number? If that person fails, what steps are taken to address the problem? What is the overall company goal or primary priority in measuring it? How is success measured?
If you receive a negative score, the first step should be to determine if the rating was justified. Did the team meet the service-level agreement (SLA)? Was the communication conducted properly? Was it an employee problem, customer problem, or a process problem?
If these steps validate the rating, you then reach out to the customer and ask for additional feedback or even provide a gift, like a gift card, to apologize for their negative experience. If the problem was with an employee or process, this is when a new KPI is created to prevent further mistakes.
Another example relates to customer texting. Crewhu didn’t want employees to use their personal phone numbers for customer communication. But as texting is becoming a more popular professional form of communication, customer feedback revealed that offering texting could provide higher satisfaction rates.
Crewhu decided to integrate Tixt by Gozynta, and now teams don’t have to give out their personal numbers and can offer to text customers. Texting can then be used as a feedback tool in addition to email.
Recognizing opportunities with positive feedback
It’s easy to only focus on what’s wrong, only addressing negative feedback. But when you’re trying to fix something, it can lead to burnout. Instead, turn your thinking around – what percentage of the feedback you’re getting is positive?
Don’t ignore that positive feedback.
It needs to be celebrated with your teams so that they can stay engaged and feel rewarded for all their hard work. They need recognition for the positive as well as the negative.
Focus on small daily wins within your team. And with customers, don’t always focus on those who had a bad experience. Create bonds with the customers who love you, who give you very high ratings. Bring them into a steering committee or ambassador program, for example. These stronger relationships will also help you get more referrals.
The bottom line: if you build the right processes, you’ll see better outcomes. And that includes focusing more on setting up surveys, employee rewards, and contests as part of these systems and processes.
The success of Crewhu’s platform is not just about the tool; it’s about the processes and people behind it. We believe that when you combine satisfied customers with happy employees, your business will be on the path to growth.
Recognize and reward employees with our platform and collect valuable customer feedback. Get in touch to schedule a demo.