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Customer experience, abbreviated as “CX”, is of utmost importance to all businesses. Most businesses strive to ensure high customer satisfaction in order to retain their existing customer base and gain potential new customers as well.
There are various customer satisfaction metrics, or tools, that allow businesses to quantify customer experience (CX) and satisfaction, in order to identify problem areas and improve on them.
The most commonly used metrics to measure customer satisfaction are:
In this article, we delve into each one of these three metrics, along with their advantages and disadvantages.
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Net Promoter Score, or NPS, is a customer satisfaction metric that quantifies customer loyalty and satisfaction through surveys. In an NPS survey, there is usually just one question, and it’s always along the lines of “How likely are you to recommend us?”. The question will then follow with a 10 point scale allowing respondents to choose between 0 to 10. The lower the score, the less likely the customer is to recommend the company and the higher the score, the more likely they are to do so.
Respondents/customers are then categorized into the following groups based on how they answered the question.
NPS is calculated as follows:
NPS= % of promoters – % of detractors
NPS will always be expressed as a number between -100 to 100.
NPS can range between -100 to 100. If the score is negative, the company has more detractors than promoters and if the score is positive, the company has more promoters than detractors which is favourable. A good score, however, for most big companies is a score of 50+.
Customer Satisfaction Score, or CSAT, measures customer satisfaction levels. CSAT surveys usually have a question about a customer’s satisfaction in regard to the brand, for example “how would you rate your overall satisfaction with the product you received?”. Some CSAT surveys will have more than one question when the company wants to create a more in-depth survey.
Different kinds of scales can be used such as a five-point or ten-point numeric scale, or even the likert scale ranging from “very satisfied” to “very unsatisfied”.
CSAT is calculated as follows:
CSAT = (Happy Customers ÷ Number of Customers asked) x 100
CSAT scores are generally represented as a percentage.
The higher the percentage, the more satisfied is the company’s customer base. Typically, a good CSAT score will be one that is 75% or more, however this may vary across different industries.
Customer effort score, or CES, is a metric that strives to measure the ease of experience the customer had in regard to their interaction with the company.
Similar to NPS surveys, CSAT surveys also generally use a single question to ask their clients. Respondents are asked to rate their experience from “very difficult” to “very easy”. This metric gives companies an idea of how easy or difficult it was interacting with their company.
CES is calculated as follows:
CES = % of customers who had – % of customers who had an easy experience a difficult experience
This score requires the calculation of the percentage of customers who had an easy experience with the company, and the percentage of customers who had a difficult experience with the company before the CES can be calculated.
There is no defined standard for a good CES score as it varies significantly across companies.
However, similar to NPS, a positive value is a good indication as it means the number of users that had an easy experience with the company is more than the number of users with difficult experiences. The higher the CES score, the better.