[MUSIC] Hi. Let me continue with the analysis that we're doing of expected results. Remember for every single objective that we define in the marketing or strategy part of the marketing plan, we need to define a metric in order to figure if we are reaching the expected result and that's basically what we are discussing here. We're going to focus now in the customer objectives. What were the customer objectives? Basically the idea of customer attraction, or customer retention. So are we going to focus on attracting new customers, or should we focus more in retaining and increasing loyalty among the customers that we already have? So basically, that's the main idea that we're going to discuss here. So first, what is customer attraction? Well basically, the idea is the extent to which a brand is able to attract new customers to its customer base is how we define customer attraction. So how can we measure it? How can we know if we are attracting the customers that we were looking for when we're defining the objectives? Well basically, it's a very simple metric that is basically figuring out the percentage of new customers in your customer base. It can be giving us a percentage or it can be given us an absolute number but the idea is figuring out if we are reaching the objectives that we have in terms of customer attraction. Let's say for example, we open a new business and we say we want to attract, I don't know, 1,000 customers in year one, so that would be my objective. So how am I going to test it? Well basically we know the expected results, I should define a metric in order to define if I'm really attracting this number of customers. Like I was saying, another option is using the percentage, any of them is good. Both of them are quite easy at the end. What is the other customer objective? Customer retention. Very relevant, especially if we are already in the market, and we have already a customer base. So customer retention is basically the activities that we do in a company, in order to reduce customer defections, okay, so customers leaving. The question here once again is how can we measure it? And the typical metric that we recommend using in the marketing plan for measuring customer retention is the opposite. It's what is usually called the churn rate, or the percentage of customers that are going to leave us during that certain period of time, usually one year, because a marketing plan usually is a one year plan. So the churn rate which is the opposite of the retention, churn meaning the customers leaving, is going to be the metric that we're going to use here in order to figure if we are retaining the number of customers that we want to retain, if we are developing loyalty among the customers that we have. There could be another two or, at least yeah, two more possible metrics that we can use in order to figure if we are achieving the expected results that we want to achieve in terms of customer objectives. So attraction and retention. The first one is customer satisfaction. Why customer satisfaction? Because customer satisfaction usually is a strong indicator of customer retention and loyalty. So many times, you will see that in a marketing plan, we're going to see the customer satisfaction metric and the expected results in order to somehow identify if we are actually reaching the customer retention objectives that we want to reach. So customer satisfaction is basically evaluating or measuring if the customer is actually satisfied with the product or service. And what is satisfaction? Basically, if we are meeting or exceeding the expectations of the customer, okay. So that will be the idea of customer satisfaction. And how do we measure customer satisfaction? Well, basically, asking the customer, okay. Asking the customers to rate the level of satisfaction with the product or service that we are delivering. This is usually called the customer satisfaction index. Okay, so we take a sample of customers, and we ask them, and we figure the levels of satisfaction. What is the other metric that I will recommend for the customer objectives, attraction, retention in your marketing plan? Well, there's a very well known metric that I use, and I recommend, which is called the net promoter score, which is NPS. The net promoter score is a very simple index. It basically measures the willingness of a customer to recommend a company's product or service to others, okay? And it's just one question, it's very simple. But it's a very strong proxy, a very strong indicator of customer satisfaction, and also of customer loyalty, okay? So how can we measure it? Very simple. We take a sample, we take a survey, and we ask a very simple question. That is basically, how likely are you to recommend this company's product or service to a friend, okay, or a colleague? And we tell them to evaluate this on a one to ten scale, okay. So as you can see here, there are going to be detractors, passive and promoters. The detractors are the ones giving a score between one and six. So those guys are not going to recommend us to anybody. The passives are the one between seven and eight. And the promoters, the real promoters are the ones that are nine and ten, okay. So that is, like I was saying, a very strong indicator of customer retention and customer loyalty. Okay, so just to summarize this next step in expected results, where we're looking for indicators for customer objectives, attraction/retention, I recommend using the attraction rate to figure out the attraction levels, churn rate, basically to define customer retention, and then If possible, customer satisfaction index and net probable risk also to know more about your satisfaction levels and your potential retention levels. And that will be concerning the expected results in the customer objectives. Thank you very much. [MUSIC]
