Q. \"Customer Metrics and Their Impact on Firm Performance\" (and, if the compan

Question

Q. "Customer Metrics and Their Impact on Firm Performance" (and, if the company has a prominent service component to its offerings, "Putting the Service-Profit Chain to Work").

Using either the company you currently work with or one that you can research online, give examples of how the following metrics are tracked/calculated

a.     Customer satisfaction

b.     Service quality

c.      Customer loyalty (or net promoter or other similar metric)

d.     Customer behavior (may be customer acquisition, customer retention, page visits, or other meaningful metric related to customer behavior)

e.     Customer lifetime value

f.       Firm Performance (profitability, value, or other meaningful metric).

Explanation / Answer

The firm that I would pick to provide examples of the metrics is a consulting firm specialized in providing strategic, supply chain, financials, technology implementation etc.

a) Customer satisfaction - This is measured as Client/Customer satisfaction Index which considers multiple factors with ratings and weights through feedback from the customers.

b) Service quality - This is one of the factors contributing to customer satisfaction and is measured by considering the dimensions like Tangibles, Reliability, Responsiveness, Assurance and Empathy.

c) Customer loyalty - This is measured based on the amount of business provided by the customers, repeat orders, increase in business, referrals to other customers etc.

d) Customer behavior - This includes the purpose and effectiveness of customer communications, interest shown by customers on the new services etc.

e) Customer lifetime value - This is the amount of business expected to be provided by the customer for lifetime.

f) Firm Performance - There are several metrics to measure firm performance some of which include profitability, increase in sales, financial ratios etc.

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