Finance is all about numbers — and when it comes to measuring success for your bank, credit union, or financial institution, Key Performance Indicators (KPIs) may be even more important. Providing a quality customer experience for financial customers will help build trust and loyalty with your bank and it is important to know how to measure and track the customer experience at your business. This quick list of the Most Important Customer Experience KPIs in Finance and Banking may be able to help you see where there may be room for improvement in your operations.
Top 5 Customer Experience KPIs in the Finance Industry
There are many metrics you can track to gauge customer experience success and some have more value than others based on the industry you are in — especially in the financial sector where trust and loyalty are keys to success. These KPIs provide important insights into customer satisfaction, engagement, and overall experience, enabling banks and credit unions to make data-driven decisions to optimize services and improve customer relationships.
Here are five of the most important customer experience KPIs to focus on in the finance industry:
1. Net Promoter Score (NPS)
The Net Promoter Score metric measures customer loyalty and satisfaction by asking how likely customers are to recommend your institution to others. Most customer surveys that target NPS ask — How likely are you to recommend this company/product/service on a scale of 1-10? The results provide a valuable gauge of overall customer loyalty and can help you identify areas for improvement with follow-up questions and additional feedback.
Example Equation: % of Promoters (9-10 Rating) - % of Detractors (0-6 Rating) = NPS
2. Customer Effort Score (CES)
Customer Effort Score measures how easy it is for customers to interact with your bank or credit union and resolve issues. Customers don’t want to have to fight to access their accounts, start a new account, or transfer funds, and a negative experience will impact your CES. A low CES indicates a positive customer experience, leading to higher satisfaction and improved loyalty.
Example Equation: (Sum of all CES ratings) / (Number of Respondents) = CES
3. CSAT (Customer Satisfaction Score)
Your Customer Satisfaction Score measures customer satisfaction with specific interactions, products, or services. It provides direct feedback on targeted areas of your business and your customer experience. Your CSAT can highlight where you excel and where you need to improve.
Example Equation: (Number of Satisfied Customers) / (Total Number of Respondents) x 100 = CSAT
4. Customer Acquisition Cost (CAC)
Customer Acquisition Cost measures how much it costs to acquire a new customer. It's an important metric for evaluating the effectiveness of your marketing and sales efforts and plays an important role in emphasizing the importance of customer retention for your bank or credit union.
Example Equation: (Total Marketing and Sales Expenses) / (Number of New Customers Acquired) = CAC
5. Customer Lifetime Value (CLV or LTV)
Customer Lifetime Value represents the total revenue a customer can be expected to generate throughout their relationship with your financial institution. Having a better understanding of your CLV helps you prioritize high-value customers and make informed decisions about customer retention strategies.
Example Equation: (Average Customer Revenue Per Year) x (Average Customer Lifespan in Years) = CLV
READ MORE: Best KPIs to Measure Customer Experience ROI
Tracking and analyzing important KPIs for banks and credit unions can help you gain a better understanding of your customers’ needs and expectations. This helps you employ data-driven decision-making to improve the customer experience, enhance satisfaction, and build loyalty.
Want to learn more about how you can leverage customer experience KPIs to enhance your business’s performance? Contact boostCX today for a demo and find out how our solutions can help track, analyze, and improve your customer journey!