Effective customer education is critical to the growth and success of any organisation. Companies that invest time and money in customer training can benefit from higher product uptake, lower churn, and enhanced customer loyalty. However, evaluating the efficacy of your training programmes can be difficult without a strong grasp of consumer education KPIs. In this post, we’ll look at some of the most important metrics to consider when evaluating the performance of your customer education activities.
Here are top customer education metrics
Business-to-Business (B2B) Software as a Service (SaaS) companies often rely on several key customer education metrics to understand how effectively they are helping their customers understand and utilize their software. Here are some of the most critical metrics:
1. Product Adoption Rate: This is a measure of how many customers are actively using your product. It’s usually calculated as the number of active users divided by the total number of users. A successful education program should result in high product adoption rates, as customers who understand the product are more likely to use it.
2. Feature Utilization: This metric measures how many of your product’s features are being used by customers. If certain features are underutilized, it may indicate a need for more targeted education around those features.
3. Customer Satisfaction (CSAT) Score: This is a measure of how satisfied your customers are with your product or service. Often collected via surveys, a high CSAT Score suggests that your customers appreciate your product and the educational resources available.
4. Net Promoter Score (NPS): Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction, which can also be applied in the context of customer education. NPS provides insights into how likely customers are to recommend a particular product, service, or educational offering to others.
In the realm of customer education, NPS can be used to gauge the effectiveness of educational programs, courses, or training initiatives. It helps organizations understand how well their educational efforts resonate with customers and whether they are successful in meeting their needs and expectations.
To calculate the NPS, customers are typically asked a single question: “On a scale of 0 to 10, how likely are you to recommend our educational program/course/service to others?” Based on their responses, customers are categorized into three groups:
- Promoters (score 9-10): These customers are highly satisfied and enthusiastic about the educational offering. They are likely to recommend it to others, potentially becoming advocates for the program.
- Passives (score 7-8): These customers are moderately satisfied but not as likely to actively promote the educational offering. They are neutral and may consider other options if available.
- Detractors (score 0-6): These customers are dissatisfied and unlikely to recommend the educational offering. They may even share negative feedback, potentially harming the reputation of the program.
The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The resulting score can range from -100 to +100. A positive score indicates a higher proportion of promoters, while a negative score suggests more detractors.
By tracking NPS over time, organizations can monitor the impact of their educational efforts and make improvements based on customer feedback. It helps identify areas of strength and weakness in educational programs, allowing businesses to focus on enhancing customer experiences and boosting customer loyalty in the realm of education.
5. Customer Retention Rate and Churn Rate: As discussed earlier, these metrics indicate how many customers are staying with your product (retention) and how many are leaving (churn). Effective customer education should help to increase retention and decrease churn.
Customer Retention: This is a measure of a company’s ability to retain its customers over a given period of time. It’s an important metric for any business with a customer subscription model. High customer retention means customers of the product or service tend to return to continue their subscription; they stick around. This is usually a reflection of customer satisfaction and is influenced by the quality of customer service and product/service value. Customer education can have a direct impact on retention. By helping customers understand the full scope and value of your product or service, they’re more likely to remain loyal to your brand.
In the context of customer education metrics, customer retention might be measured by looking at how many customers continue to use the product/service after being engaged in education programs, as compared to those who were not.
Churn Rate: This is the opposite of customer retention. Churn rate, also known as customer attrition, is a business metric that calculates the number of customers who leave a product over a given period of time divided by the remaining number of customers. It’s a critical factor in the calculation of customer lifetime value. High churn rate means that customers are leaving the subscription or stop using the product or service.
If a business notices a high churn rate, it’s a sign that customer satisfaction levels might be low. In the context of customer education metrics, churn rate can be used to understand the effectiveness of your education programs. For instance, if customers who have not participated in educational offerings have a higher churn rate than those who have, it could be an indication that better education helps in reducing churn rate.
To summarise, both metrics are used to measure the effectiveness of customer engagement and satisfaction with the product/service. In terms of customer education metrics, effective customer education should lead to higher customer retention and lower churn rates.
6. Time to Value (TTV): This metric measures how long it takes for a customer to realize value from your product after signing up. If your educational resources are effective, TTV should decrease, as customers will be able to get up and running with your software more quickly.
7. Knowledge Retention: This can be measured by providing quizzes or tests after training sessions. High knowledge retention indicates effective training.
8. Customer Engagement: This can be measured by looking at how many customers are engaging with your educational content, such as training videos, webinars, or blog posts. High engagement typically indicates that your educational content is useful and relevant.
9. Training Completion Rates: This measures how many customers complete your training programs. High completion rates suggest that your training is engaging and valuable to customers.
These metrics are all interconnected and can give a holistic view of the effectiveness of your customer education program. They can help you understand where your strengths and weaknesses lie, allowing you to continually improve your program and provide better service to your customers.