Key Metrics that Matter for Customer Experience
January 30, 2020
Key Metrics that matter for Customer Experience
Providing an exceptional customer experience consistently, though, is hard. Measuring customer experience and tying it to key performance metrics is harder still.
You might be familiar with some of the more popular customer experience metrics like NPS (Net Promoter Score) or CSAT (Customer Satisfaction). Considering that these scores can impact your future CX strategy, knowing what one should calculate when is almost as important as calculating the metrics itself.
In this article, we take a look at a few CX metrics which have proved their mettle over the course of time. These are the ones you should consider measuring through your customer surveys.
An extremely effective tool for measuring whether or not a customer is satisfied with a single interaction. It’s easy to implement and not a bother for your customers to answer.
Implementing CSAT immediately after a transaction or any interaction with the customer is an excellent way to know what he or she thinks about you right now.
NPS is one of the most widely used metrics by companies globally and for good reason. It’s quick for customers to answer and easy for companies to track its data.
It asks the customer a maximum of 2 questions – “How likely are you to recommend us to a friend or colleague?” and “Why did you give us that score”. The latter question can be made optional as well.
NPS scores can be used to rate a brand, product or service in general and these can give you a good idea about what percentage of your customers are promoters or detractors.
(P.S In case you’d like to know a little more about NPS, click here!)
Illustration Representing CES
Customer Effort Score (CES) is another extremely popular CX metric that relies on the customer’s input.
It typically consists of a statement or a question, and customers are given 5-7 choices to answer from, relating to their experience with your business or about how much effort a customer had to expend to to effectively use your service or product.
CES is quite useful in helping companies understand if the product is meeting their expectations or not. It’s also helpful for gathering data about a product or service’s ease of use.
Customer Retention and Customer Churn
Customer Retention is measuring whether or not a business is able to retain its customers over a specific period of time. It’s a key measure of customer loyalty over time.
Customer churn rate shows how many of your customers have stopped using your services or buying your products. It’s significant metric for companies as its far less expensive to retain existing customers than to acquire new ones.
Now Customer churn rate and retention rate are not traditional Customer Experience metrics, but are a reflection of whether or not your CX efforts are working within a set period of time. This makes them invaluable for any company which is experimenting with, or improving their CX.
With products and services more intrinsically tied together than ever before, businesses simply do not have the option of providing a sub-par customer experience. Improving one’s CX is no simple task, but with the help of the metrics listed above, you can definitely get the data you need to proceed in the right direction.
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