Evaluating business performance has two approaches, which is through quantitative and qualitative assessments. Given that Key Performance Indicators (KPIs) are essential tools for measuring and tracking short-term performance to attain long-term goals, which of these metrics is best suited for businesses?
This article provides a detailed discussion regarding the qualitative and quantitative metrics to help businesses in their decision-making regarding the two approaches based on what better aligns with their goals and objectives.
Qualitative vs Quantitative Metrics
The quantitative metrics is often associated when you evaluate the financial performance of the company, such as in measuring ROI. Through this, it provides clear data and statistics about the company’s performance. Below are the two financial metrics that your company must consider:
- Cost savings: Partnering with an outsourced CX would reduce costs as the partner is assigned in managing necessary aspects related to CX, including staff and technologies. Â
- Revenue growth: This can be applied when evaluating sales and profits that can lead to brand loyalty, which can be associated with how customer experience (CX) is enhanced by CX expertise.Â
The numerical data and results enable your company to assess your performance easily since given such findings, you will be able to analyze the areas where you excelled and what needs to be improved.
On the other hand, qualitative metrics is more on observations and descriptions. This is often focused on certain aspects such as perceptions and overall satisfaction and experiences.
For instance, customer satisfaction scores (CSAT) is used to analyze customer feedback and satisfaction, and the Net Promoter Score is also used to analyze your customers’ experience.
Moreover, results from these metrics can be further improved by using another qualitative metric, which is First Contact Resolution (FCR). It is used to measure how many contacts has been resolved during the interaction.
Which Matters More?
The two metrics, quantitative and qualitative, are both helpful for companies to measure various aspects in delivering the best customer experience (CX). The most important thing to consider is that data, results, and feedback are comprehensively analyzed.
Balancing these metrics can provide your business with detailed information about how your company is doing, its current performance, and how you can do better. From taking on new hires, teaming up with a partner, and towards ultimately sustaining them, a well-balanced use of metrics would enable you to come up with the best and strategic decisions for your company.
Keep in mind that you should know and execute the right strategies and tools to measure your success.
