The hodgepodge is normal
Your house contains products from hundreds of thousands of suppliers and craftspeople. The food you eat comes to you from a very loosely coordinated (not organized, not controlled) network of millions of vendors and farmers. To read this blog, you’re using software from hundreds (probably thousands) of companies, all barely connected in time and space. […]
Habits are not needs
It’s easy to imagine that they are, as it lets us off the hook as habits become negative, or even addictions. If someone else is thriving without the habit we seem to need, then it’s likely a desire pretending to be a need. For example: You can be a successful professional without spending time on […]
This week in CX: Twitter, Amazon, and cost-of-living business updates
Happy Friday! We’re bringing you the latest roundup of industry news. This week, we’re looking at Forsta’s predictive analytics, the eighth annual State of Marketing report, and a mass of new business updates caused by the cost-of-living crisis. This includes comments about Amazon’s Q3 results, what adverts Brits want to see this Christmas, and more. Key…
The post This week in CX: Twitter, Amazon, and cost-of-living business updates appeared first on Customer Experience Magazine.
5 Call Center Improvement Ideas to Boost Business
Whatever the size of your contact center, there will likely come a
The post 5 Call Center Improvement Ideas to Boost Business first appeared on Fonolo.
Fair and square
Fair is often in the eye of the beholder. What you think is fair might depend on where you are in the transaction. Losers tend to think an outcome is more unfair than winners do. But square? The thing about square is that everyone can agree on that part. If something is fair and square, […]
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?“
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:
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.
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 [product].”
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)
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No good ideas?
It’s certainly a common excuse for being stuck. In fact, there are more good ideas right now than ever before. That’s not the hard part. Need a name for your project? This site will not only invent a thousand names, it will also generate a nearly infinite number of logos for you. Instantly. Surely, at […]
Most Underrated in CX: Returns & Exchanges Flow
Brands are so afraid of returns, and often make the mistake of making them more difficult for customers.
This is the most underrated area for CX teams to optimize in my opinion. It’s so helpful both for a customer who is still considering their purchase, and to retain and build long-term customers.
Here’s why —
- Reduce downside for the customer.
- This is the most obvious reason. Going beyond ‘30 day money back’ also goes a long way with customers. I recently bought something from Mr. Porter where they will have a concierge pick-up your unwanted purchase without me needing to do anything.
- Build a better brand.
- you can price your products high, retaining an “elevated” brand image, while signaling to the customer that you’re so confident in your product that you’re willing to offer an insane returns (or warranty) policy.
- Build better relationships and word-of-mouth.
- Let’s assume any given customer will return their item. You still have the checkout, post-purchase, shipment tracking, unboxing, and return process to “wow” them with your attention to detail and lack of friction — all of which create an actual relationship, and help inspire word-of-mouth.
- Force better efficiencies on your back-end.
- You’ll be forced to protect your bottom line by working out the logistics first — if you dial in your returns workflow, you can become more efficient with the process, accounting for, and saving, many dollars rather than being stuck holding the bag when customers inevitably return.
- Preserve revenue with a proactive process.
- By setting up a more thoughtful exchanges process with your customer support team, you can reduce unnecessary returns. Oftentimes returns are made because of size or color issues, or the customer just wanted to try two options, but would be happy to shop with you again if given store credit.
- Brands that have excellent return policies: REI, Mr. Porter, Nordstrom, LL Bean, Patagonia, Zappos, and of course: Amazon.
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10 Techniques to Motivate Call Center Agents
Looking to motivate your call center team? There are some dos and don’ts — explore our list of motivational techniques!
The post 10 Techniques to Motivate Call Center Agents first appeared on Fonolo.
Gatekeepers and judgment
Infinity is seductive. 1,000 emails take up just as much space (and cost just as much) as one. An online bookstore can carry every book ever published. And the long tail of music gives every single person a chance to share their work. The simplest thing to do is “let the market sort itself out.” […]