KPIs for customer retention programs
1. What is the raw customer retention rate?
2. What is the raw customer retention rate in each
customer segment?
3. What is the sales-adjusted retention rate?
4 What is the profitadjusted retention rate? 4. What is the profit-adjusted retention rate?
5. What are the sales and profit adjusted retention rates in each customer segment?
6. What is the cost of customer retention?
7. What is the share of wallet of the retained customers?
8. What is the customer churn rate per channel?
9. What is the cost-effectiveness of customer retention
tactics?
The role of research
1 Why are customers defecting?
2. Are there any lead indicators of impending defection?
3. What can be done to address the root causes?
Lead indicators of defection
Reduced RFM scores Reduced RFM scores
Non-response to a carefully targeted offer
Reduced satisfaction levels Reduced satisfaction levels
Dissatisfaction with complaint handling
Reduced share of customer
Inbound calls for technical information
Late payment
Querying an invoice Querying an invoice
Changed customer touch points