Mike Parsons
innovation. storytelling. lifehacking. music

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How to Understand Your Customers

 

By measuring the things customers do with your digital service, you'll be able to attract new customers, satisfy your existing ones and spark a lot more advocacy.

Understanding your customer starts with how they behave.

6 key things to measure to understand customer behaviors

MARKETING & SALES

1. Customer Acquisition Rate: how many new customers are generated each day/week/month as a percentage of overall users?

SERVICE & USAGE

2. The rate of usage: how many hours are customers using the service per month? How many sessions per month?
3. Customer Churn Rate: What percentage of customers to the service who terminated compared to the previous period?

ADVOCACY

5. Net Promoter Score: A number between one and ten that indicates how likely the customer is to recommend the service.
6. Social Sentiment: What is the attitude of people towards your product on social media? Negative, Neutral or Positive?

PROFITABILITY

7. Customer profitability: How much profit do you make per customer and which ones are the most profitable? What's your expansion revenue - the percentage of your revenue growth is coming from existing customers?

If you start with these key metrics, you 'll be able to find many benchmarks to compare with. More importantly, track these metrics. Improve these customer behavior metrics and you'll on track for a profitable product, service or business.