Customer experience (CX) is widely recognized by organizations, as per Gartner, as the primary driver of competitive advantage. Therefore, any rationale that advocates for exceptional customer experience (CX) becomes straightforward.
Since CX is quite versatile and complex, it will (it is) be realistic to say that a well-detailed CX will comprise comparing several CX data from multiple angles.
The question now will become, what aspect of the metrics will be worthy of measurement and again? How do we get the particular set of metrics that can comfortably show in detail customers’ opinions towards your brand?
Let’s get down to business. We will now show you the major 5 metrics which when analysed together can give you a detailed insight into CX.
The Net Promoter Score (NPS): Unpacking the Power of Customer Experience
Confidence is one of the major reasons a customer will go on to make recommendations for your product or services to another person, be it a friend, colleagues, or neighbor. Likewise, if your product or services are no good, customers will scream out loud to prevent others from buying it. Generally, the Net Promoter Score (NPS) is what you need. It measures the rate at which customers will be willing to make recommendations for your company.
Rating a brand by customers is usually done on a scale of 0 to 1. Any score below 6 will be noted as “detractors” and customers giving your brand a rating of 7 or 8 are still double-minded and can easily switch to another brand. Any score that comes between 9 or 10 is the scores we regard as “promoters”. Now, if we are to calculate the NPS, we will be subtracting the percentage of detractor customers from the percentage of promoter customers.
The result obtained from the NPS is usually an accurate and reliable way to rate general customer experience. Even though the result might appear to be blunt. Coincidentally, the developer of the system, BAIN, which is a consulting firm, supported this NPS theory when he demonstrated the way business growth is associated with NPS. There’s also space right after the NPS where the CX picture can be made more colourful.
Therefore, it is necessary to make NPS the very first thing you check when you rate your Customer Experience (CX).
Churn and Retention Rates: Key Metrics for Gauging Customer Loyalty
For Churn, organizations analyse the number of customers usually in percentage that quit from service within a given period. While Retention shows the percentage of customers that remain in the service within a period of time. So, it can be said that the Churn and retention rates simultaneously show the same thing. In other words, both can say to show off NPS as being able to illustrate the overall CX.
There are 2 major reasons why churn and retention appears to be among key indicators of customer experience;
- First of all, it can shed off the part that says customers take their leave for dissatisfaction purposes. They both do show overall customer experience to some extent.
- Again, you should consider reducing churn. It’s quite costly to keep getting new customers that will take the place of those customers that left the organization.
Customer Satisfaction (CSAT) Metrics: Gauging Client Contentment
You can take a look at the Customer Satisfaction Score (CSAT) when you want to see the factors behind customer churn. The 5-point scale (from poor to excellent) is usually used when measuring customer’s satisfaction. It is necessary to increase the number of responses you receive because
We can generally say that the most valuable thing about CSAT score is that it helps to pinpoint the specific area of their products or services that customers don’t find good enough.
Customer Effort Score (CES)
Even though both Customer Satisfaction (CSAT) and Net Promoter Score (NPS) will provide you with a balanced image of both the negative and positive aspects of customer experience. The CES tends to give more precise details of what may hinder the good Customer Experience (CX).
CES focuses more on requests from customers to use the scale of very easy to very difficult when rating their Experience.
In other words, CES asks customers today how easy or difficult it was for them to use their products or services. As well as have their customer service issues resolved.
Therefore, the primary aim of conducting a CX survey is to help know how easy customers find using your products and services. The CES which tends to show a more accurate image of this aim becomes very valuable and important.
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is all about analysing the foreseen net profit of lifespan of each customer relationship.
In as much as a company’s way of measuring their CLV may be a bit different from another company’s. It will be worthwhile to bear in mind 2 major reasons why CLV is important.
- The first thing to note is that the majority of customer experience prefers to make an investment. You should know that too many investments will decrease generated profits. Therefore, it is necessary that you supervise the net profit of your customers. This will be your guide towards their investment and increasing profits.
- Secondly, checking the CLV with time will help you know if your customers really love your products or services or are just enduring it for some reason.
Customer Satisfaction Metrics; Knowing the Best Way to Respond
Customer experience is multifaceted, and each CX metric method we’ve discussed contributes distinct insights to the overall CX assessment. These metrics provide valuable information about customer satisfaction, encompassing both current and historical perspectives.
So, my advice to you if you’d love to have an extensive picture of what your customer experience looks like. Study these multiple methods for a longer period of time. This will enable you to create the best and stronger strategy for your Customer Experience.
Learn more about the importance of customer satisfaction or other blogs by checking our blog page.