Online sport game
The team that develops an online sports game has, as KVI, the daily active users (DAU): the number of (millions of) users that play every day. A large proportion of these users use the game, about 15% have a paid subscription. These more serious gamers bring in the revenue. The percentage has been very stable over the years: as the DAU rose, so did the monthly income. Therefore the DAU is a proper indicator of both delivering value to the customers and to the company. People that really loved the game play it daily. The more people that play it daily, the higher the revenue.
The number of DAU was known to everyone. When people came in the morning, they asked each other about the DAU and in the course of the day they followed how it developed. New functionalities, improvements and marketing campaigns were measured in terms of increase (or decrease) of the DAU. New employees are updated on historical increases through good functionalities. Painful drops due to bugs, unsuccessful features or not responding quickly enough to competitors are shared with a smile and a tear.
Teams that develop a fitness app together have the daily active minutes (DAM) as KVI. The app is free for users; advertising revenue is the main source of income. During the use of the fitness app, advertising messages appear at the bottom of the screen. The DAM indicates how many (millions) of minutes the app is used worldwide. The higher the DAM, the people fitness and greater the success of the app.
An insurance company was searching for a proper KVI. After brainstorming and talking with customers, they discovered that there % of satisfied customers is relatively low. Out of the millions of customers they have, not a significant part was very satisfied with their insurances. Next, there cost-per-insurance was higher than market standard. Together they sketched a new KVI and it was the total cost divided by the number of satisfied customers. The metric was called the cost-per-ambassador. Stating that a satisfied customer is also an ambassador of the company and will automatically promote the product to their friends and families. The teams could then use their collective brainpower to both lower the total cost as to increase the customer satisfaction.
Product software company
A software company is searching for a proper KVI. They have over many customers that use their product on a daily or weekly basis. They used to track the NPS (Net Promotor Score). But over the past months they noticed that their NPS wasn’t giving them the insight they needed. Looking at the customers that filled in the NPS, they saw that a very low percentage spend the time on giving the feedback and that most of the not-so-happy customers did spent the time. But the fast majority didn’t. Next they wanted to know the correlation between the amount of the monthly subscription an the satisfaction. Because the monthly subscription varied between € 10,- and over € 5.000,- per month. Together with some product managers they brainstormed on this dilemma. They asked themselves two questions. How can the KVI give insight:
- on the satisfaction of the vast majority of the customers;
- give insight on the amount spent every month.
On a monthly basis every customer would be queried on his satisfaction. If they gave a 7 or higher, their monthly subscription counted. The new metric is: . The total monthly subscription of all the 7+ customers. To get more customers’ feedback, they introduced two improvements. First they just would ask more bluntly for a figure between 1-10. The relationship managers and customer support employees of course also took notes on the details of this feedback. Next, to improve the interaction with the customers, they started to use tools like UserVoice to give the customers a concrete and tangible platform to post ideas and change priorities of the product backlog.
Teams that are jointly responsible for handling support calls have chosen the number of calls per week per 1,000 customers. This KVI had to lower to indicate success. By working together with, among other things, sales, IT and marketing, they started to focus on reducing the number of unnecessary calls. This allowed the teams to give real attention to the customers who still call and give them a positive experience about the company. In other words, thanks to the lower number of calls, the teams could spend time on customers that really needed their attention and they could focus on delivering customer impact.