Customer lifetime value (CLV) can more accurately measure customer satisfaction levels.
Despite customer satisfaction being the top metric for marketing decisions, there isn’t any standard definition for customer satisfaction. Brands should incorporate consumer satisfaction along with marketing and financial metrics to understand customer satisfaction levels better.
This piece argues that marketers should consider financial metrics along with customer satisfaction to effectively correlate consumer experiences to ROIs. Metrics like CLV can help brands measure the total value of consumers over their entire relationship with the brand and align customer experiences with long-term brand objectives.
Third-party metrics like Net Promoter Score can further help brands link consumer satisfaction to income and growth. The author argues that if brands are inherently interested in financial outcomes from their consumer satisfaction efforts, they should link the two together to get a better insight.
[4 minute read]