Customer KPIs: the road toward recurring sales

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What level of satisfaction do customers have in relation to your company? This is one of the questions that you should be able to answer, since business nowadays is user-focused. What are the customer KPIs that you should measure to gain the loyalty of customers and achieve recurring sales? Keep reading to find out.


Customer KPIs: satisfaction is important

Knowing that capturing a new customer is up to four times more expensive that retaining an old one, since satisfaction is the key factor in the customer loyalty process, it is essential to have an engagement plan and follow-up through well-established customer KPIs, which allow user loyalty to be measured.

Furthermore, a satisfied customer may become an advocate for our organization, but a disappointed one will also share his bad experience with your company with even more persons, probably.

This is why we should establish a retention strategy with well-defined customer KPIs that let us measure our loyalty plan’s success and help us increase recurring sales. Below we bring you the most useful metrics and indicators to evaluate your prospective customer’s satisfaction.

Related reading: Digital sales: your sales force’s best ally


Which are the KPIs used to gain customer loyalty

Customer KPIs should be focused on three different aspects of the relationship with our prospective customers: acquisition, retention and efficiency. As stated by the Euroresidentes portal, there are certain Key Performance Indicators that every sales director should have in mind to analyze the degree of customer loyalty and satisfaction:


  • Net promoter score (NPS):

    As indicated by Puromarketing, the Net Promoter Score “is a methodology that allows you to know and manage emotional customer loyalty and measure the degree of loyalty toward a company, brand or service” by asking a simple question: Would you recommend this company/service/product to a friend or family member? Analyzing it is quite simple:

1. Customers must respond to this question with a score ranging from 0 to 10.

2. We divide the answers into three groups:

    • Scores 9 to 10 – Promoters. These are loyal customers that are satisfied with our brand, who buy most frequently, and who may even become ambassadors to our business.
    • Scores 7-8 – Passives. These are users that are satisfied with their current purchase, but who have not reached a level of satisfaction to be always faithful to our brand, and they are even at risk of going to the competition.
    • Scores under 6 – Detractors. Unsatisfied customers who will probably not only not buy again, but they are also a threat to our company, since they may damage our image with their comments.

NPS = % promoters – % detractors

After subtracting these percentages we obtain a number that ranges from (-100) to 100. If the result is a positive number, you can consider the level of loyalty as acceptable, and if it is over 50 it is also very good. If it is negative, your customer satisfaction is not good, and you should think about revising your loyalty strategy.


  • Customer Profitability Score (CPS):

    The Customer Profitability Score measures a user’s profitability in a specific period of time, which is to say, how much profit it brings the company and how much it costs to satisfy his needs. This helps us determine which the customers that bring profits are, which will be those on whom we should focus our strategy. 

CPS= (Overall income for the customer – overall expenses for the customer) / overall expenses for the customer


  • Life Time Value (LTV or CLTV):

    The next step to measuring customer profitability is finding out for how long this profitability will hold. This customer KPI helps us determine possible discounts, gifts or unique promotions that we can offer our users to maintain them.

LTV = Average sale amount x repetitions per month or year x customer average lifetime


  • Conversion rate:

    This metric will let you determine which amount of prospective users have ended up becoming customers. In addition, this information will be useful to interpret what consumers are looking for and what finally leads them to buy your products or services.

Conversion rate = total leads accomplished / visits performed x 100

Conversion rate


  • Cancellation / forfeiture rate:

    This shows users that have stopped having a business relationship with us. With it, we will be able to know the amount of prospective customers who have abandoned the relationship with our company (within a specific time frame) and the reasons.

Cancellation rate = (consumers lost by the end of a period – new consumer in that period) / consumers at the beginning of the period x 100


  • Retention rate:

    This is the percentage of repeat customers every year. Successful customer retention starts with the first contact we have with the user, and lasts throughout the entire life of the relationship. It can be useful to establish the goals for our next loyalty plan.

Retention rate = 100 – cancellation rate


  • Customer Satisfaction Index:

    Knowing the level of consumer satisfaction with the brand will allow us to make changes in our future strategies. In order to know this index, it is necessary to perform a brief satisfaction survey after any contact with the customer.

In it we should include various questions about the overall satisfaction with our company or products, and weigh them (using scores or criteria such as not satisfied, somewhat satisfied, satisfied, highly satisfied or don’t know/no opinion).

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Use technology to measure customer KPIs

In order to determine customer KPIs, you may rely on sales applications. Sales tools such as inaCátalog are designed to perform an adequate metric measurement.

Furthermore, they provide useful and objective information about sales representatives, such as exact location where actions are performed, the specific time of each action or task traceability.

In addition, there is a preliminary phase within the inaCátalog implementation project that contemplates the exploitation of data collected by the application and the basic training for companies to make the most out of dashboards.