How to measure customer experience & satisfaction? Key metrics
A loyal customer is a satisfied customer. I know this very well as the core focus of my company is CX-aware solutions development. We use customer experience and customer satisfaction insights to inform our decisions for product designs. NPS, CSAT, and CES are the most commonly used customer satisfaction metrics. I’ll introduce you to each metric and show how they can help improve your business performance. CX metric #1: net promoter score (NPS) The Net Promoter Score measures the willingness of customers to recommend a company’s products to others. It is used to identify the loyalty of customers to a company. How to measure customer experience with NPS? I usually measure NPS with a single question survey: “On a scale from 0 to 10, how are you likely to recommend company/brand/product X to a friend/colleague/relative?“ https://preview.redd.it/bknuhd2krjx91.png?width=1249&format=png&auto=webp&s=4ca0089a7e0a0cefc3726d09e9c3ac865ddb3c2c Reading NPS CX metrics is easy. Here, 0 stands for not at all likely, and 10 is for extremely likely. Depending on the response, customers fall into one of three categories to establish an NPS score: https://preview.redd.it/g9ruvzsipjx91.png?width=1249&format=png&auto=webp&s=0c71103cca2aaf7c59be0fb318888134cd9f83ea Consider implementing this CX metric into your customer experience strategy, as it can be used with industry NPS benchmarks to see how your product is doing compared to your competitors. The formula to calculate the NPS metric is simple. You have to subtract the percentage of customers who answer the question with a 6 or lower from the percentage of customers who answer with a 9 or 10. Customer satisfaction formula: NPS = % PROMOTERS – % DETRACTORS If you apply the NPS feedback correctly, you can adjust your business to meet customers’ needs without over-delivering in one area or under-delivering in another. CX metric #2: customer satisfaction score (CSAT) CSAT is a commonly-used key performance indicator for customer experience. I usually apply this metric to track how satisfied customers are with the product. CSAT surveys are one of the ways to measure customer experience in regard to a certain aspect of your product. For example, you’ve added a new feature and want to see how efficient and useful it is to the end users and if any improvements are necessary. https://preview.redd.it/iicdip5srjx91.png?width=1250&format=png&auto=webp&s=13b80797e6ac91d27bc0851111e2ad51c873f5e7 Here’s an example of common CSAT questions: “How are you satisfied with our product?” or “How would you rate your overall satisfaction?” with the company, its product, or a certain interaction. A five-point customer experience scale is used, with the following options: 1) very unsatisfied, 2) unsatisfied, 3) neutral, 4) satisfied, and 5) very satisfied. Companies can calculate CSAT by using an average of 1-5 or focusing on the 4-5 responses. Customer satisfaction formula: (#) POSITIVE RESPONSES / (#) TOTAL RESPONSES X 100 = (%) CSAT To calculate the Customer Satisfaction Score, divide the number of “satisfied” or “very satisfied” respondents by the total number of respondents and multiply it by 100. This results in your CSAT percentage. CX metric #3: customer effort score (CES) With the CES experience metrics, we ask customers to score the amount of effort involved with a specific interaction. Using CES surveys, you can ask the question, “on a scale of ‘extremely easy’ to ‘extremely difficult, how easy was it to interact with .” https://preview.redd.it/eurisgz0rjx91.png?width=1250&format=png&auto=webp&s=8fc4c4889fe9311dc4afa8c6cdfa66220bb0479a The idea is that customers are more loyal to a product that is easier to use. Customer churn is one of the main business drivers, and customer effort is a great indicator of loyalty. CES impacts your business outcomes and is ideal for tracking customer experience over time. To calculate the Customer Effort Score, determine the percentage of positive (easy and easy) and negative (complicated) responses to your CES survey. You can then subtract the number of negative responses from the positive responses. Customer satisfaction formula: CES = % EASY – % DIFFICULT If you get a high average, your company is making the experience convenient for customers. A low average indicates that there’s still work to be done in order to make the customer experience easier and more engaging. However, the drawback of CES is that it is more focused on evaluating a particular process of customer interaction, so it doesn’t give a broader understanding of the entire customer experience. For this reason, I apply CES together with Net Promoter Score and Customer Satisfaction Score to get a better understanding of customer satisfaction. Other customer experience metrics Customer experience is multi-faceted. That’s why there’s no single CX KPI that would give you a straightforward answer as to whether the customer experience you provide is good or bad. To make sure you are guided by relevant data, you have to keep track of a variety of customer experience indicators. Although they do not point at customer experience flaws directly, they may well add context to the data you’ve already collected with the NPS, CSAT, and CES metrics. So, here are a few more KPIs to measure customer experience: Customer lifetime value (CLV) Customer health score (CHS) Customer retention rate Customer referral rate Customer churn rate Conversion rate Active users: daily (DAU), weekly (WAU), monthly (MAU) submitted by /u/joe_dojo [link] [comments]