Question
CPIs (Customer Performance Indicators) and KPIs (Key Performance Indicators) are both types of business metrics, but they serve different purposes. CPIs are used to measure customer satisfaction, expectations, and outcomes at specific points in their journey. They are often derived from open-ended questions that reveal insights surveys might not capture. KPIs, on the other hand, are used to measure the performance of a business in achieving its key objectives. They are often quantitative and directly tied to business goals. The relationship between CPIs and KPIs is that improving CPIs can often lead to an improvement in KPIs.
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To master this metric, Cornfield writes, first, separate CPIs from KPIs. Thus, many assume that is a CPI. But actually, only businesses really care about their NPS; customers typically don't, he explains. Next, define your CPIs. Look for ways to uncover "customer frustrations, expectations and target outcomes at specific points of their customer journeys, and then ask the series of open-ended questions to gain insights that surveys wouldn't know to ask, and that customers might not be inclined to answer in a survey," Cornfield writes. Finally, drive business performance by connecting CPIs to KPIs. Once CPIs are determined, measure them and see how they impact one or more of your KPIs. When the relationships between specific CPIs and KPIs are confirmed, start holding teams accountable to CPIs they can impact, Cornfield writes.
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