Customer Experience – What to measure to get it right
Link between customer experience and
business performance is directly dependent on breaking down overall experience
into smaller insights based on your company's specific goals and different
stages of the customer journey. Customers are willing to spend more money to
buy from a firm that provides good customer service. Thus, to attract, engage,
and keep consumers, organizations are increasingly investing in a customer
experience platform.
Companies need a mechanism to quantify
the success of their efforts when they devote substantial portions of their
money to improving customer experience projects. Thus, you may devise a
goal-oriented strategy to decide which KPIs are most suited to measuring your
success.
Customer acquisition, engagement, and
retention may be identified as three strategic facets of the customer
experience.
1.
Net Promoter Score (NPS)
The Net Promoter Score (NPS) is
frequently used to appraise a brand, service, or product in general and is
critical for determining your standing with your consumers. With a lower NPS,
you'll need to work more to change your consumers' minds about your firm. A
rise or reduction in NPS assists you in forecasting future revenue gains or
losses as It is widely accepted, and benchmarks are available.
To calculate your NPS, simply subtract
the percentage of detractors from the percentage of promoters. While NPS tells
you where you stand, it doesn’t tell you why you got that score. To get better
information, we usually increase the number of questions that explore the
customer’s thoughts.
2.
Customer Satisfaction (CSAT)
CSAT is highly interactive and an
easy-to-use customer satisfaction metric. It’s an excellent technique to find
out what your consumers are thinking about you at the moment. Customer
retention is boosted in organizations with high customer satisfaction. This
metric helps gather up-to-date feedback since it can be calculated fast,
usually within hours or less following a customer’s use of a product or service.
This allows us to quickly reduce any friction that might be affecting their
business across all channels, ensuring optimal customer experience
3.
Customer churn rate
The customer churn rate indicates how
many of your customers have abandoned your products or services. It can also be
considered as lost business value over a period. Low Churn rate indicates that
your customers are happy with the level of service you provide. Thus lowering
Churn rate is critical step towards Customer retention as retaining existing
consumers is substantially less expensive than acquiring new customers. More
importantly, when we combine the churn rate metrics with other operational
data, we can identify churn patterns, which can help us identify where your CX
issues really are and get insights on how to address them.
4.
Customer Effort Score (CES)
The Customer Experience Score (CES) is
a transactional indicator that evaluates how simple a single solution is to use
and it entails client participation. It is critical to provide an easy-to-use
experience in order to increase client satisfaction leading to retention. Thus
using this statistic for identifying the sources of distraction, it is possible
to reduce churn in a cost-effective manner. This metric helps improve the customer
experience by showing places where improvements can be made to make things
easier for customers.
5.
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is a forecast of the net profit earned over the course of a customer's whole future relationship. It may be assessed as a business value that a customer contributes to a firm throughout the course of their relationship
6.
Average Resolution Time
The average resolution time is a
customer service KPI that measures how long it takes an organization to handle
a client issue. This customer service statistic is closely related to client
satisfaction and represents the effectiveness of the team. Fast resolutions are
the most important aspect of a positive customer service experience.
One can better determine which levers
to pull in order to influence client's experience when one can relate to the
customer experience measure results to what transpired in the transaction. It's
critical to comprehend how the customer experience influences consumer behavior
which in turn affects your business.
