3 Key Metrics For Maximising Customer Experience
If you want to get the most from your CX efforts, you will need to track the right metrics. This will help you find out whether your implemented solutions are working out, what you would need to change and what you should eliminate.
Without tracking the metrics, you risk running around in circles, using ineffective solutions that and losing you a lot of time, money and customers. No serious business wants that for itself. Therefore, it’s crucial that you know these metrics – and start implementing them right away.
Here are three essential things you need to measure for maximum efficiency in providing customer experience.
1. Net Promoter Score
In short, the Net Promoter Score (NPS) is an index that shows how willing your customers are to recommend your product/service to others.
You can calculate it using a simple scale of 0 to 10, by asking a question such as: “Would you like to recommend us to friends or colleagues who might be interested?”. Answers are then sorted in three categories: detractors (6 or lower), passives (7 and 8) and promoters (9 and 10).
Detractors are not very interested, the passives show some interest but lack the enthusiasm to spread the word, and the promoters are so happy they cannot help becoming brand advocates and promoting your business.
Your NPS is what you get after you subtract the percentage of detractors from the percentage of promoters. It can be used to rate a specific product/service, but also your business as a whole.
For example, if your percentage of detractors is 20%, and the percentage of promoters is 55%, your NPS is: 55% - 20% = 35%.
2. Customer Satisfaction (CSAT)
This is one of the most frequently used CX metrics, and the reason why is because it’s effective and easy to use (your customers can answer it quickly, without any hassle).
CSAT is usually asked after a resolved issue in customer support or a successful business transaction. It gives you immediate feedback on whether your customers are satisfied with the service provided.
The question asked for calculating CSAT could be something like: “How would you rate [X]?” and then show a scale of 1 to 5, or 1 to 10 for customers to tick off. Also, you can form the questions around the level of enthusiasm: fantastic/great/good/satisfactory/not so good/could be better/bad.
And to calculate the CSAT score, divide all the responses that are positive to the number of all the responses you got – and then multiply it by 100.
Here is an example:
• 500 responses
• 400 positive
• 100 negative
• 400 (positive responses) ÷ 500 (total responses) = 0.8
• CSAT score is 0.8 × 100 = 80
But this is best-suited for binary questions i.e., those that can be separated into two categories (good-bad, etc.). When the CSAT score is calculated using a number scale, this is how to calculate it: the total score of all the responses is divided with the maximum possible score and multiplied by 100.
• Total score is 45
• Maximum score is 60
• 45 ÷ 60 = 0.75
• CSAT score is 0.75 × 100 = 75
3. Customer Effort Score (CES)
This is a very important CX metric, as it’s closely connected to brand loyalty and brand advocacy. CES revolves around ease of use and how simple it was for customers to have their problem solved.
This can even be one of the questions asked to get the results: “How easy was it resolve the problem you had?” Another variation of this question could be: “How effectively did our organisation help you solve the problem?”
The answers are usually presented on a 5-point or 7-point scale e.g.: extremely effectively/very effectively/quite effectively/ effectively/effectively enough/not effectively enough/ not effectively at all.
CES is calculated by dividing the sum total number of responses with the number of responses you get. Here’s an example:
• You get seven responses, with the following number of points for each (based on the scale above, with ‘extremely effectively’ carrying 7 points and “not effectively at all” carrying 1 point, as the lowest one): 7, 7, 6, 6, 5, 5, 5
• The sum total of all the answers is: 7 + 7 + 6 + 6 + 5 + 5 + 5 = 41
• The number of all the responses is 7
• CES is 41 ÷ 7 = 5.85
Customer experience is very complex, and you should never rely on just one of these metrics to get the best results. If you truly want to maximise your CX efforts, be sure to track all the metrics, compared and analyse them, and improve based on the results you get.
How do your results compare to the metrics discussed above? Do you have admirable achievements in providing customer experience you would like to share with the greater CX community? If yes, consider entering GCXA22 and competing for one of the awards. See you there! More information here: https://gulfcxawards.com/enter-now