Measuring Success in Today's Omni-channel Environment
A modern digital delivery strategy meets customers where they are in their journey. It increases precision and improves customer experience with early needs detection, engagement, abandonment retargeting, and attrition risk mitigation. It also uses data and analytics to drive resource utilization toward high-probability opportunities to increase efficiency and reduce waste.
But how can banks measure whether these digital strategies are successful?
In an Omni-channel environment, monitoring customer activity becomes increasingly difficult due to reduced physical contact. Digitizing a business model requires improved KPI granularity to continually improve areas such as workflow, customer experience, and consumer self-serve functionality. Management insight KPIs drive execution success. Quantifiable performance indicators drive strategic and tactical modifications to existing activities to optimize market performance. Two primary KPI categories achieve this objective:
- Performance KPIs measure degrees of success and failure for specific goal achievement and processes. An example of a performance-based KPI is digital sales conversion which shows ratios of attraction to interest to executed action. Performance over time indicates the effectiveness of website content and early customer engagement through fulfillment processes.
- Predictive KPIs quantify probability. Predictive KPIs indicate likely customer attrition and sales performance forecasts based on pipeline content.
Meaningful visual numerical interpretation requires descriptive statistics. KPIs measure what matters in the context of targets and standards, empowering managers with critical knowledge. With properly defined KPIs, users can know what actions must be taken and what will likely happen. KPIs turn data into quantitative actionable insight.
For more information, download the Defining Digital as a Strategic Competitive Differentiator interview document.