3 expanded Take Aways from the great HBR article below.
KPIs (Key Performance Indicators) are useful but they don't necessarily support a customer-centric organisation. KPIs are often created to monitor the company performance inside-out rather than outside-in (from the customer point of view)
Distinguish the difference between KPIs and CPIs (Customer Performance Indicator) and develop internal skills to connect the two. For instance KPIs should be able to trigger changes in CPIs and this should be proven through experimentation.
Build your own CPIs and not copy-paste from other companies. Your customers have specific needs - focus. Groups and surveys don't work.
Example: moving from CLV (Customer Lifetime Value: value from a customer over the entire duration of the relationship) KPI to the inverse CPI: value delivered to customers over the same duration. The relation is therefore transformed from inside-out (what matters to the company) to outside-in (what matters to the customer). If more value is delivered over the same time it means that ultimately the company can deliver growth:
typical CPIs: value to users (can be anything) displayed in user portals, or communicated prior to renewals.
equivalent KPIs: customer retention, loyalty, and classic lifetime value itself
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