8 Customer Success KPIs Every African Fintech Should be Tracking

Blog post
7-8 mins
November 10, 2022

Customer success is important for the growth of any business, including fintechs. And with the rising cost of customer acquisition, African fintechs need to be more intentional about customer success. In this article, we highlight crucial customer success metrics to track, and how OneRoute makes it easier for you and your team to track them.

As of 2021, Africa was home to 576 fintech startups, a 17.3 percent increase from 491 in 2019. These fintechs have achieved significant success, with approximate revenues of about 4 - 6 billion dollars in 2020 and average penetration levels between 3 and 5 percent, comparable to global market leaders

Mckinsey attributes part of this growth to rapid customer acquisition through innovative sales strategies in a rapidly digitalising continent.

It’s truly remarkable.

However, it takes more than just sales and marketing to maintain growth. Especially with the meteoric rise in the cost of customer acquisition over the past decade — a 222% increase in 8 years. So, what other steps can fintechs take today to succeed?

Short answer? Invest in and actively track customer success.

Long answer? Read to find out.

What is Customer Success?

Your duty to your customers doesn’t end after you’ve made a sale or convinced them to use your product. You also need to ensure that their interaction with your product throughout their customer journey is satisfactory.

This is customer success. 

Customer success involves supporting customers as they actively use your product while building customer loyalty and nurturing brand-customer relationships.  

This should be pretty easy. Well, not quite.

According to a 2022 Hubspot review, 90% of leaders reported that customer expectations have increased to an all-time high. Users want you to take out your magic crystal ball and preempt any issues they might have with your product.

President Obama saying we don't have all the answers over a crystal ball

Therefore, to succeed in your business, you and your customer success team must anticipate and resolve challenges before the user encounters them. 

But, how do you know you’re getting customer success right? How can you tell if your organisation is doing all it can to retain and support customers? 

A great way to tell is through customer success KPIs or metrics.

What Are KPIs for Customer Success?

Customer success KPIs are metrics that determine how effective your organisation, particularly your customer success team, is at executing customer success strategies. 

They help identify gaps in your customer relationship approach, and show you what needs to change.

Why Should You Track Customer Success KPIs? 

Customer success improves customer happiness and loyalty. Sure, you have a great product, but if you don’t help your customers maximise its potential after conversion, you might find it hard to keep them. 

By assisting your clients in their product journey, you turn them into ardent evangelists for your business. You’re building trust and brand affinity. Especially in the African space where cybersecurity concerns like phishing have made customers reluctant to deal with fintechs.

Peace Obinani, Product Marketing Manager at Piggytech, explains just how important customer support is for fintechs in Africa.

“Fintech is a space Nigerians [and Africans] are gradually warming up to. So, it is very important. You can’t just leave it as vibes. People have trust issues. Therefore, you need to be intentional about customer support and your support team” 

Peace was formerly the Social Media Lead at Piggytech, and her team ran social media support as well. Speaking on the significance of CS metrics, she remarks that metrics help you know “..what you’re doing right, what you should do more of, and what you should do less of, so you’re not stressing your customer or your team too,”

In summary, tracking user behaviour and creating customer success metrics shows you where your business is and what you need to do to improve.

Here are some other ways customer success KPIs help your company:

         -It helps reduce churn rate 

        - Improves product adoption

         - Improves customer satisfaction

         -They could serve as alarm systems

         -They keep everyone on their feet

However, companies do not need to track every customer success KPI. We don’t want you to drown in numbers now, do we?

Instead, focus on the metrics that drive your organisation’s goals and fit your product. A law firm won’t track the same metrics as a fintech, and no two fintechs are alike either. But, there are certain customer success KPIs that African fintech must track if they plan to sustain growth.

We’ll look at them below. 

Top 8 KPIs that best measure customer success in Fintechs

The importance of customer success KPIs varies based on the business focus. However, here are the five most important customer metrics every African fintech should track:

1. First Response Time

First Response Time (FRT) refers to the average time it takes for a client with a problem or inquiry to be attended to by a support agent. A lower FRT means your customers’ issues are satisfied quickly. Satisfied customers make for sticky ones, and sticky customers bring in the big bucks. 

Man makes a snow angel in a pile of money

Ideal first response times for varying channels are:

Having auto responses, templates and chatbots for your different communication channels can be crucial for having quick and consistent response times technology platforms like OneRoute makes setting up those systems easy and affordable to adapt.  

FRT is calculated by taking the total of first response times and dividing them by the number of cases resolved in a particular day or any other period to find the average.

Average First Response Time = Total FRTs during that particular day/Total number of resolved tickets.

 FRT = Total FRTs during that particular day/Total number of resolved tickets.

2. First Contact Resolution

First Contact Resolution Rate measures the number of customer requests successfully resolved on the first contact with the customer. More requests solved at first contact shows the effectiveness of your customer success team.

First call resolution percentage is calculated by dividing the total cases resolved on the first try by the total number of cases and multiplying all by 100.

For example, if your fintech received 2000 calls a day, and 500 were resolved on the first try, your FCR rate would be 25%.

3. Full Resolution Time

Full Resolution Time or Time To Resolution is the time difference between the creation of a customer’s inquiry ticket and its resolution. The less time it takes to get to an answer, the better. However, every resolution should be accompanied by a real solution to the customer’s problem.

Don’t rush to give irrelevant answers. One-third of all consumers believe that being able to fix their problem in one sitting, regardless of the amount of time spent, is the most significant part of successful customer service experiences.

An image showing that Full Resolution Time can be calculated by recording the total customer inquiry resolution time in a certain period and dividing by the number of customer inquiries in that period.

Full Resolution Time is calculated by recording the total customer inquiry resolution time in a certain period and dividing by the number of customer inquiries in that period.

4. Customer Satisfaction Score (CSAT)

Your Customer Satisfaction Score (CSAT) is a broad customer success metric that measures how your customers perceive your product and your customer support/success teams. 

CSATs do not have an exact calculation. The data is mostly derived through consistent, unbiased customer surveys that ask users to select a value in a range to describe their experience. 

5. Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) calculates the total revenue a single customer might generate during their interaction with your company. Higher revenue means increased customer value, which means that your offerings are helping your users.

Image showing that CLV is calculated by multiplying the average transaction value by the average number of transactions and the average customer retention period in your organisation.

CLV is calculated by multiplying the average transaction value by the average number of transactions and the average customer retention period in your organisation. 

For instance, imagine your customers spend an average of $60 every time they use your product about three times every month. Also, assume that your average customer lifespan is typically two years before they stop using your product. From this, you can calculate that my CLV is $4,320 ($60 x 3 visits x 24 months).

6. Customer Effort Score

The Customer Effort Score (CES) calculates how much effort an average customer spends to get an issue resolved.  

On the one hand, a higher effort score may mean that customers are loyal to your product and want the issue resolved. However, it could lead to frustrations and higher churn rates. Gartner reports that  96% of customers who go through high-effort experiences before issue resolution are usually disloyal in the future.

Customer Effort Score is calculated through data from surveys and feedback forms.

7. Net Promoter Score (NPS)

A Net Promoter Score (NPS) merely measures how likely a customer would recommend your company to someone else. This data can be generated from a simple survey asking customers to pick a number from a scale to answer how likely they’d recommend your product to friends.

As the saying goes, 

“Satisfied customers tell three friends, angry customers tell 3000.”

However, just 19% of companies measure NPS once a year, and 20% don’t measure it at all.

8. Customer Health Score (CHS)

This is another broad customer success metric to watch. Your customer health score determines how often your customer uses your product and what impact it has made on their lives.

There’s no specific way to calculate the customer health score. However, you can determine your CHS by identifying a baseline for your average “successful customer” and comparing that with other customers from time to time.

How can African Fintechs Track Customer Success KPIs

Now you know what customer success KPIs to track for, it’s important to learn where and how to gather the data for your calculations.

Customer success metrics are gathered, collected, or computed in various ways. They include:

A. In-app behavior tracking

Your dev team can observe how customers use the product through the product back-end. They can also spool relevant data and create graphic visualisations to represent your chosen customer success metric. 

B. Feedback forms 

Surveys are quick and easy ways to determine how your company’s customer success strategy is performing. However, note that it only represents the current situation and should be conducted frequently.

C. CRM platforms

CRMs can help build the data you need to measure your customer success KPIs. Your average CRM platform should be able to generate and export basic reports that give you an overall sense of your metrics.

D. Customer Success Platforms (CSPs)

According to Hubspot, three of the top challenges for customer service leaders in 2022 include too many tools.. 

A man screaming that it's too much

Using numerous tools complicates your data-gathering process and makes tracking customer metrics a chore. An effective solution to this problem is Customer Success platforms, or CSPs. 

Customer Success platforms, like OneRoute, are essential for tracking customer success KPIs. Not only are they often integrated with common CRM systems like Zohodesk, but they also produce data-driven reports from a unified dashboard, meaning you spend less time chasing numbers and have more time to study your metrics.

Track important customer success KPIs with OneRoute

Customer success is a key growth determinant for any African fintech company. Your bottom line depends on how satisfied customers are with your products and services, and the only way to know is by measuring their success.

OneRoute offers African fintechs an affordable, code-free, and flexible platform to track and analyse your customer success data from any integrated database — including Freshdesk and Zoho. We also provide omnichannel engagement options for your inbound and outbound communications to customers, and ensure frequent dashboard updates right down to the minute. 

At OneRoute, intuitive insights are valuable. And so is your business.

Want to explore how OneRoute can help with customer success? Contact us HERE.

Chidinma Egwuogu
Chidinma Egwuogu

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