C H E AT S H E E T

Customer Centric Marketing KPIs

In order for a marketing organization to EXECUTIVE LEVEL KPIs

become customer-centric, it’s vital to

develop and maintain a set of custom- They indicate the overall performance of a company’s CCM strategy
er-oriented key performance indicators
Customer Lifetime Value (CLV)
(KPIs). This is not to say you should ignore
How much a given customer is going to spend in a store throughout his
the metrics you’re currently using— it’s just

that a CCM approach requires dedicated or her relationship with it.

metrics.
Customer Equity
Here’s an overview of the customer centric Total value of all of the new customer relationships created in a given
KPIs you need. They are organized into period. It’s equal to the number of new customers acquired in a given
high-level metrics (Executive Level) that
period, multiplied by the CLV of those customers.
indicate the overall performance of a

company’s CCM strategy, and tactical M ANAG E R IAL LE VE L K P Is

metrics (Managerial Level) that highlight

concrete marketing opportunities. These focus on concrete marketing opportunities

Acquisition: CLV by Channel

What it is
A view of the CLV of customers acquired across different acquisition
channels
What you can do about it
Identify the channels that are bringing in your highest-value custom-
ers and consider investing more in these channels, while pulling back
investment on channels that are bringing in lower-CLV shoppers.

Retention: Lifecycle Status Distribution

What it is
Snapshot of where your customers fall within customer lifecycle status
What you can do about it
If you see significant shifts in the lifecycle status distribution of your cus-
tomers, dig into additional retention triggers (Early Repeat Rate, Overall
Repeat Rate, and Winback Rate) to identify segment-specific retention
opportunities.

CUSTORA U For more marketing analytics know-how, visit www.custora.com/university

 C H E AT S H E E T

Customer M A NAGE R IAL LE VE L K P Is (cont.)

Centric
Retention: Early Repeat Rate
Marketing What it is
KPIs What percentage of new customers have made a second purchase by a
(cont.) certain fixed point in time
What you can do about it
Put cultivation triggers in place to educate new customers about your
brand and drive repeat purchases.

Retention: Overall Repeat Rate

What it is
What percentage of repeat customers go on to place another purchase
within 60 days of their last order
What you can do about it
Deepen your relationship with customers through a cross-sell strategy
to introduce them to new categories based on what they’ve bought in
the past.

Retention: Winback Rate

What it is
The percentage of inactive or lapsed customers in a given period who
were “won back” into making a purchase
What you can do about it
Set up winback triggers to re-activate customers as they show signs of
slipping away.

Retention: Leaky Bucket Ratio

What it is
A metric showing the number of customers “lost” in a given period rela-
tive to the number of new customers acquired
What you can do about it
Put an effective winback strategy in place to minimize the rate at which
customers churn.

CUSTORA U For more marketing analytics know-how, visit www.custora.com/university