Measuring customer experience is important for businesses because it allows them to understand how customers feel about their interactions with the company. This information can then be used to improve customer service, make it easier for customers to use the company’s products, and create more effective marketing campaigns.
But how exactly do you measure customer experience?
Customer experience measurement framework
Before we can dive into the metrics, it is important to have an idea of how the customer experience data will be integrated and used to improve the customer experience. A measurement framework provides this structure. Here are four major pillars to consider when developing your framework:
- Use an integrated system.
- See what the competition is doing.
- Choose the right metrics.
- Include every department in the initiatives.
1. Use an integrated system.
One of the first steps in measuring customer experience is to make sure that data is being collected from all channels – online and offline. This will give you a holistic view of how customers are interacting with your company.
You also want all the data centralized so that you are not pulling from separate sources to analyze data. This can make analysis difficult and time-consuming.
2. See what the competition is doing.
No one likes to be left behind, especially when it comes to customer experience measurement. Keeping tabs on what the competition is doing will help you stay ahead of the curve and improve your customer experience metrics.
You can use a variety of sources – online reviews, social media, customer surveys – to see how the competition measures up.
3. Choose the right metrics to measure customer experience.
There are a plethora of customer experience metrics out there. But which ones should you focus on? Different metrics will have different levels of importance depending on your business goals. More on this below.
4. Include every department in the initiatives.
Customer experience is not only the responsibility of one department. It takes the effort of everyone in the company to provide a great customer experience. This includes marketing, customer service, product development, and more.
Now that we have a general idea of how to measure customer experience, let’s take a look at some common metrics.
Customer experience metrics
Measuring customer experience is important for a company to understand how they are doing and how they can improve. There are many different metrics that can be used to measure customer experience, including satisfaction surveys, Net Promoter Scores, customer effort scores, and more.
The most important part of measuring customer experience is understanding which metrics are the most relevant. The most common metrics used are:
- Customer Satisfaction (CSAT)
- Net Promoter Score (NPS)
- Customer Effort Score (CES)
- Customer Delight Score (CDS)
- Customer Lifetime Value (CLV)
- Churn rate
- Referral rate
- Sales
Customer Satisfaction (CSAT)
Customer satisfaction is one of the most common ways to measure customer experience. It is a simple metric that asks customers how satisfied they are with a product or service on a scale from 1 to 10.
This can be for anything from the business overall to specific customer interactions, so make sure you are analyzing the data for what it refers to. CSAT scores can be collected through surveys, either online or in person.
Net Promoter Score (NPS)
The Net Promoter Score (R) is a metric that measures how likely customers are to recommend a company’s products or services to others. It is calculated by asking how likely respondents are to recommend the company on a scale from 0-10, with 10 being the most likely.
NPS can help you understand how well a company is doing in terms of customer experience and how likely customers are to continue using their products or services.
Customer Effort Score (CES)
The CES is a metric that measures how much effort it takes for customers to use a product or service. It is calculated by asking how easy or difficult it was for respondents to do what they wanted to do on a scale from 1-5, with 5 being the easiest.
CES is a good metric to measure how easy it is for customers to interact with a product or service and how much effort they have to put in to get what they want.
Customer Delight Score (CDS)
The CDS is a metric that measures how much customers enjoy using a product or service. It is calculated by asking how likely respondents are to recommend the company on a scale from 0-10, with 10 being the most likely.
CDS is a good metric to measure how much customers enjoy using a product or service and how likely they are to continue using it.
Customer Lifetime Value (CLV)
The CLV is a metric that measures how much money a customer is expected to spend with a company throughout their lifetime. It takes into account how often they purchase, how much they spend per purchase, and how long they are expected to remain a customer.
CLV is a good metric to measure how much money a company can expect to make from a customer throughout their lifetime. It can help you understand how loyal your customers are and how often they return to make a new purchase.
Churn rate
The churn rate is a metric that measures how many customers stop using a product or service over a given period. It is calculated by taking the number of customers who have left in a given time period and dividing it by the total number of customers at the beginning of that time.
Churn rate is a good metric to measure how many customers are leaving your product or service. This can help you understand why customers are leaving and how to keep them from leaving in the future.
Referral rate
The referral rate is a metric that measures how many customers were referred to a product or service by another customer. It is calculated by taking the number of referrals in a given time period and dividing it by the total number of customers in that period of time.
The referral rate is a good metric to measure how successful your referral program is. This can help you understand how likely customers are to refer your product or service to others.
Sales
Last but certainly not least, sales. Sales are a good metric to measure how successful a company is in terms of customer experience. If customers are happy with the product or service, they are more likely to buy it.
There are many different metrics that can be used to measure customer experience. The ones listed here are some of the most common ones. Each one provides a different perspective on how customers feel about a company’s products and services. By using a variety of metrics, you can get a well-rounded view of how your company is doing in terms of customer experience.
Final thoughts: how to measure customer experience
Measuring customer experience is an important way to ensure that your business is providing the best possible service and products to your customers. By using common metrics such as customer satisfaction surveys, Net Promoter Scores, and Customer Effort Scores, you can track how well you are doing in meeting the needs and expectations of your customers.
If you find that you are falling short in any area, you can take steps to improve the customer experience and increase customer satisfaction.At CustomersFirst Academy, we offer customer service training for your whole team. We can help your business grow by empowering each employee to provide exceptional service every time.
