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Popular Customer Experience Metrics and which one to use?

On 16 Jun, 2020 | No comments
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--By CB Rajesh--

There are numerous customer experience metrics that an organisation can deploy to measure efficacy of all their customer engagements. The choice of any metric depends on the nature of business, market strategies and the current stage of their evolution and their go to market plans. Certain industries tend to favour one metric to another due to their past experiences and practices where they would have got sharper insights and better outcomes. This is because businesses lean towards what has worked for them in the past.

The Dilemma

The debate within the businesses are always about which of the CX tools to be deployed for measuring the customer experience and these decisions are mostly driven by the C-suite or by the CX/Marketing senior management professionals. Today roughly 60% of the organisations are already using one or more customer experience tools and are also evaluating to upgrade themselves to use top CX metrics like Net promoter score (NPS), Customer effort score (CES) or Customer satisfaction (CSAT).  Since these initiatives have a wider impact across the organisations, its stakeholders and their market strategies one tends consume a lot of time researching, comparing and benchmarking various offerings that are currently available in the market. This change is also driven by the competition or by people getting exposed to advanced tools adopted by new age ecommerce players who are continuously disrupting the market place. Such companies are swift and effective in measuring the customer experience and their brand loyalty since their business are dependent on repeat purchase.

So, what is the dilemma?  The common predicament is of shortlisting or selecting the right survey tool, since that is where most of the planning time of CXO’s and Functional Heads gets consumed. This is critical because the customer success at their organisation will depend on the efficacy of the program and its output. The challenges involved in deploying any of these programs are,

1. Identification of the right product and its deployment

2. Defining clear goals & vison for the program (aligned to business strategies)

3. Aligning training & establishing ownership for all stakeholders

4. Designing and disseminating relevant communications

5. Creating roadmap to compare performance on business objectives

6. Celebrating success at short intervals using balanced score card

The Metrics

Let us explore Net promoter score (NPS), Customer effort score (CES) and customer satisfaction (CSAT), the top Customer experience surveys which are deployed today by majority of organisations (Refer table 1.1 for their distinct advantages & limitations).

  • NPS is the most popular CX metric which is used today by varied businesses. This NPS survey tool is easy to deploy through multiple mediums like Digital, Text message, Call, IVR etc (refer table 1.2 placed below). This survey primarily helps to evaluate brand loyalty and can be measured multiple times across one journey. This at times could be intrusive and hence some organisations carry out dedupe to reduce measurement frequency in order to keep the customer at ease.

  • CES is all about making it easy for the customer to either complete the journey or solving an issue. It is generally used to measure unique journeys on whether or not it is frictionless. By reducing resistance or by making it easy to use in any journey is the key principle of CES. It also helps in creating actionable data to improve customer experience and also helps predicting customer behaviour.

  • CSAT is mostly used for tracking quality of support and is relatable to number of key business areas.  The measurement of customer satisfaction is fast and simple and hence easy to deploy and extract output. This metric also points to specific areas of interactions or transactions and can help create scorecard at an individual level.

The Rationale

It is not right to compare one metric with another since each of these measurements have established their use and applicability at different levels of journeys (refer earlier table 1.1 of advantages & limitations). A pragmatic approach will be to create an organisational CX strategy first and then the key pillars to achieve it. Shortlisting of any CX metric can be done after Identifying engagements or journeys which will positively influence in achieving those goals. Let’s also look at modes though which any of these CX measurement tools can be deployed

Finally use of any metrics should be taken considering a long-term view on how the outputs or insights will be used for improving customer experience, to boost current business and go to market strategies. Also, how many resources an organisation is willing to commit and by when to revisit and evaluate its effectiveness.

The Applicability

The evolved wisdom and understating on these CX metrics indicates that one must not compare them against each other and rather use it in different journeys to get optimum output. Intrinsically each of these metrices can be applied in different stages of a customer lifecycle basis relevance (refer the table 1.3 below).

There is an element of VOC (voice of customer) which gets generated through various CX initiatives and helps you explore the core emotions of how good or bad was the journey from customers point of view. There also lie a deeper sentiment of any customer to be analysed (RCA) in order to build it as strengths or to eliminate weaknesses. It is a larger subject to be covered in this article we may explore it later.

The Conclusion

The idea is to define the strategy first and align the metrices complementing the organisation goals. If these CX metrics are aligned smartly, the organisations can use each of the metric in tantum by using one’s output as other input feed. This can constantly work as continues improvement cycle.

To deploy any of the above metrices, a detailed research and planning are essential and this will require shortlisting the best fit survey tool/software and accordingly choosing the right partner for the engagement.

“Let the CX metrics sweat for each other’s efficiency”



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