A one-stop KPI can help form strategic decisions. Find out how you can use the Emoscore to drive your company’s performance.
Key Performance Indicators (KPIs) help you to better measure, understand and analyze the success of your business. They are a collection of data that can be used to help drive your company’s performance.
KPIs can help identify important elements of your business performance, such as sales levels, customer behavior, customer loyalty, and website conversion and bounce rates. KPIs are powerful tools: they can help you predict future results, and compare your company’s performance to that of your competitors’.
A good KPI can draw this information together to paint a ‘big picture’ overview of your company to help you solve problems, build success, and guide future development.
KPIs are the key learning about your customers’ needs. Over time, KPIs follow user experience and track customer satisfaction to help you improve the products and services you are offering.
Effective KPIs can help gauge the emotions of customers and identify the buying behaviors that drive purchasing decisions and brand loyalty. Accurate KPI results can help form strategic decisions, pave the way for company growth, marketing and advertising strategies.
The 3 traditional KPIs
There are various KPIs available, and each usually serves a different purpose. It’s important to know which to use – and when. In particular, there are three established ‘traditional’ KPIs.
Consumer Satisfaction Score (CSAT): A survey-based KPI used to measure the overall customer satisfaction with a business, product or service.
- CSAT surveys are fairly cheap and easy to implement. They produce quantitative data that is easy to understand and data that can be used to identify trends and solutions.
- CSAT scores can be benchmarked. On-line stats from the American Customer Satisfaction Index can be used to compare your scores against competitors.
- Asking customers for feedback helps them to feel involved in your business. This can help improve customer relations.
- Satisfaction is subjective; the word “satisfied” means different things to different people.
- Satisfaction is just one of many emotions that influence customer behavior. There is a need to measure other customer emotions as well to pinpoint overall feelings and satisfaction levels.
- CSAT surveys often miss customers who are “neutral” or “dissatisfied” as these customers are less likely to bother filling out surveys. The results of the survey can therefore be inaccurate and skewed towards extreme outcomes (positive or negative).
Customer Effort Score (CES): A KPI aimed at measuring how much effort your customers put into using your services or having issues resolved.
- The CES seems usually better than the Net Promoter Score (below) and the CSAT at predicting future buying behavior.
- The CES performs well at predicting customer loyalty.
- The CES is highly actionable. It can help you to pinpoint weaknesses your company has in its interactions with customers.
- The CES does not consider how price, product, and competitors influence your customers.
- The CES works at a transactional level only. It does not provide information about your customer’s overall relationship with your business.
- The CES does not measure all interactions. The metric may record that a customer put in a large amount of effort into using your service, but it may not reflect that the customer was ultimately disappointed with your services.
Net Promoter Score (NPS): A KPI that focuses on measuring customer loyalty.
- NPS is intuitive, simple and easy to understand. It involves one question, one score, one percentage.
- NPS is a customer-centric metric, as it helps companies focus on a positive consumer experience at the point of sale and post-sale.
- NPS is easily benchmarked. As it is simple and standardized, it can compare time periods, companies and products at the same time.
- NPS is not specific enough. The margin of error is approximately double that of other traditional customer satisfaction surveys. To get better precision, you need a large sample size.
- NPS lacks in actionable data in terms of coverage and accuracy. It can be hard for companies to make strategic plans based on the data.
- NPS scores are subjective. Some customers might consider a score of “8” to be high, whereas the NPS might not. Results can also be manipulated. Companies can bias results with messages to their customers to encourage them to record high scores.
- Usually, NPS covers only existing clients as it asks them how likely they are to recommend the company. It can only be done after some kind of transaction and those NPS results are therefore usually missing an important part of the audience: the one that did not convert.
Emoscore – the future of KPIs
The Emoscore from Emolytics is a customer-centric KPI that measures the emotional value or benefit of products and services. This algorithm has been developped in the research centers of the UCL University, in Belgium.
A one-stop KPI that provides a comprehensive customer overview, Emoscore produces more information than the traditional KPIs mentioned above. That’s because Emoscore correlates the other three KPIs, meaning you don’t need to decide which one to use – with Emoscore you get the best of all of them.
- Emoscore is customer centric. It puts the customer at heart of your business. In contrary to other KPI such as NPS or CSAT, it speaks a human language of emotion, rather than asking people to give a rating from 0 to 10, which meaning varies deeply across cultures. Emoscore helps you to get to know your customers. You can use different socio-demographic profiles to find out if customer behavior varies according to age, background or location.
- Emoscore can save you time. In-depth reports and summaries are easy to digest, plus pre-formatted data can be exported and shared among your team. Get the information you need faster and easier.
- Emoscore can help you make money. It can have an immediate impact on your business. You can optimize the Emoscore by optimizing business metrics as conversion rates, study time spent on your website, bounce rates, return on investments, and much more.
- Emoscore covers all your business interactions with users, before and after a purchase. It means you can get a relevant KPI from your whole audience, helping you increasing your global response rate, while it is not possible for other KPIs like NPS or CES.
Why emotions matter when choosing a KPI
Scientific evidence clearly shows that people don’t make buying decisions based on logic alone. They need to feel a sense of emotional attachment to your business or product in order to want to buy or engage with it. The Emolytics KPI exploits this very effectively.
At Emolytics we are experts in understanding how emotions drive customer behavior. We know that purchasing decisions are not always rational behaviors, but are often driven by raw human emotions. We know that emotions come first, and these can affect buying behavior and customer loyalty. Emotions come first, revenue follows.
With the Emoscore it’s possible to measure these emotions and to put them into context by comparing them to other metrics. This is a key advantage of using the Emoscore over other KPis. With the Emoscore, you can process a huge amount of data that has high statistical significance. The scientific and systematic way the Emsocore has been developed also means there is a high response rate to our multi-channel surveys.
Get to know your customers with Emolytics
Questions, calculations and reports are automatically provided and easy to understand with the Emoscore.
The Emolytics dashboard provides cross tables with selected KPIs as well as the Emoscore for ease of comparison and understanding. In this way, it provides an informative and effecive ‘big picture’ overview that also allows you to drill down to find information related to a specific area of your business. On an even more detailed level, it can help you to isolate information relating to individual marketing or advertising campaigns within your business strategy.
Emolytics displays all types of quantitative and qualitative data by combining KPIs and acting as a “KPI prism”, not only showing raw data but also the reason behind the qualitative information. It can help you understand the purpose of your customers’ visits to your website, with charts and KPI heatmaps providing the information in digestible formats. It can also compare customers vs. non-customers, and help you to understand the differences between the two groups and how they behave.
In short, Emoscore from Emolytics can open the door to one or more traditional KPI for you to help you to survey and monitor your audience.
Start using Emolytics today
Find out how you can use the Emoscore KPI from Emolytics to find out more about your customers and their user experiences. Get in touch for a free consultation with our digital experts today.
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