Customer experience plays a crucial role in shaping how customers perceive and engage with your brand, ultimately influencing their loyalty and retention. But how do you know if your custom experience is up to standard or if your customers are experiencing unwanted friction?
Here are five metrics that will help you understand how your customers feel about interacting with your business.
5 Metrics for Measuring Customer Experience Success
Measuring customer experience success involves employing a range of methods and metrics to evaluate and assess the satisfaction and perceptions of customers. Here are some key approaches to measuring customer experience success:
Customer Satisfaction Score (CSAT)
CSAT measures overall customer satisfaction with a specific interaction, transaction, or experience. It typically involves asking customers to rate their satisfaction on a scale (e.g., 1-5 or 1-10). The two highest ratings, depending on the scale you use, are used to determine the percentage score, with 100% being complete customer satisfaction and 0% being complete customer dissatisfaction. CSAT surveys can be conducted after specific touchpoints or interactions to gauge satisfaction levels and identify areas for improvement.
Net Promoter Score (NPS)
If you want to measure your customers’ loyalty and determine their likelihood of returning to your business, you can use the Net Promoter Score. NPS measures customer loyalty and the possibility of recommending your brand to others based on a simple survey question. An example of a question can be, “On a scale of 0-10, how likely are you to recommend Company A to a friend or colleague?”
The respondents are then categorized into three groups: Promoters (those who responded with scores 9-10), Passive (scores 7-8), and Detractors (scores 0-6). To find the NPS score, you’ll need to subtract the percentage of Detractors from Promoters.
Customer Effort Score (CES)
A Customer Effort Score assesses the ease of the customer experience, paying particular attention to the effort customers had to put in to achieve their desired outcomes. A CES measures effort and ease by asking questions like “How easy was it finding the information you needed from our company?” and giving consumers simple options like ‘Easy, Neither, or Difficult.’
Subtract the percentage of ‘Difficult’ responses from ‘Easy’ ones to determine your CES. A lower CES score suggests a smoother and more effortless experience.
Customer Retention and Churn Rate
Customer retention rate refers to the percentage of customers your business retains over time. In contrast, churn rate is the percentage of customers who cancel their subscriptions or stop using your product or service. Monitoring these two metrics helps determine overall experience success. A high customer retention rate and low churn rate suggest that your customers are satisfied with your service or products and are loyal to your brand. The vice versa is also true.
Customer Lifetime Value (CLV)
A Customer Lifetime Value score determines how much money a customer has brought/ will bring to your business over the entire duration of their relationship with you. CLV helps assess the overall success of customer experience as loyal and sustained customers tend to have higher lifetime value. It takes into account different costs, including the cost of acquisition and retention of the customer and the cost to serve them.
There’s Always Room For Improvement
Measuring customer experience success isn’t a one-and-done process. It’s an ongoing process that continuously evolves and adapts to changing consumer needs and expectations. Utilizing these measurement approaches helps businesses gain valuable insights into customer perceptions, identify areas for improvement and make data-driven decisions to enhance the overall customer experience.
At Aktie Now, we offer a comprehensive range of services, including CX consulting, Zendesk solutions, and tailored customer-centric strategies. Aktie 360 is our proprietary consulting methodology. From diagnosis to ongoing optimization, we’re here for you every step of the way. Contact us today to learn how we can help transform your customer experience.