The incredible framework of Customer Experience Metrics
Dec. 07, 2022
According to a recent report, 76 percent of business leaders believe that customer experience is vital for their company's growth. The customer experience (CX) is straightforwardly linked with customer acquisition, engagement & loyalty. Today starting a business culture and structure that places CX at the forefront is crucial. The accurate measurement and analysis of the customer data assist the brand in boosting customer experience and creating long-lasting relations.
The CX analytics effectively delivers actionable data to the brand and offers verified measurements to gain success. To become a dominant player in the market, a company requires the right CX analytics to deliver actionable, measurable, and profitable business insights.
Industry-wide evolution of CX trends
Technology is a great tool to leverage the Customer experience as it is identified as a top emerging strategy to impact end-user engagements. If the customers choose a brand, they will be more likely to remain loyal and eventually work like the brand advocates. Measuring the complete process through CX metrics is crucial for boosting customer retention.
As per the Customer engagement statistics, the companies which earn above 1 billion dollars annually can expect an additional 700 million dollars on average within three years by investing in quality CX trends. Different CX trends have been evolving in the digital space, like omnichannel, data-driven marketing, chatbot automation, video marketing, and many more. The methods deliver phenomenal rise to boost the customer experience.
CX Metrics - Big way to win customers
All the companies track customer experience using at least one or several of the top worldwide CX metrics. These metric tools capture actionable and measurable data for an authentic customer experience. CX metrics assist the brands in obtaining a complete picture of the customer journey. The most important customer experience metrics which are used to improve the products and services for the businesses are -
1. Customer Satisfaction Score (CSAT)
The customer satisfaction score (CSAT) is one of the most prominent CX metrics that business leaders use to know how happy or unhappy their customers are with the services.
This tool is exclusively designed to target a particular product feature, like support ticket inquiry or product return. With the easy target feature, customization, and simple survey, it is quickly adaptable to the needs of any business.
2. Net Promoter Score (NPS)
Net Promoter Score (NPS) is a prime measure of customer experience that assist companies in building customer loyalty and attaining growth. The NPS score accurately reveals the percentage of customers who love, are neutral, or aren't fans of your brand.
The simple question says, "How many of your customers are likely to recommend you to a friend or colleague?" The answer tracks down the genuine loyalty of the customers; that's why this simple metric is taking over big businesses in the global market.
3. Customer Effort Score (CES)
Customers prefer simple interactions with easily navigated websites and usable products and services. The Customer Effort Score (CES) Survey allows customers to rank these interactions, products, or services as easy, neutral, or complex. It's a transactional metric that measures how your customers can find something.
Understanding your CES will also show you where the customer experience is smooth and where there are friction points. Thus the more effortless you can make the customer experience, the more likely your customers will buy from you again.
4. Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is a great metric tool that tells you how much one customer has brought to a business in the entire journey. In other words, how much are "worth" to a business?
The calculation also considers how much a company spends to keep that customer. It's a fantastic CX tool as it lets the business see whether a customer is happy and making more purchases or spending less with the company over time.
NPS - The favourite global CX metric
NPS is the most common CX metric, as almost two-thirds of companies follow it. In the modern business climate, the most successful companies are the ones which take NPS data and use it to boost and direct their business strategies, customer success ratio, and product development. Using NPS explains the fundamental relationship between KPI trends and money retention metrics. For example, if KPI exceeds a specific number, customers are more likely to become detractors.
The behavioural categories in the NPS structure provide easy ways to communicate the meaning of KPI trends. It is the most crucial tool that strongly assists managers in judging the business against competitors. Companies are using the NPS metric as the core tool of the CX programme due to its simplicity and popularity.
Therefore NPS has become a powerful tool globally for understanding the business's current position and aptly predicting where it could be in the future. However, the NPS score variation depends from county to country.
How has SurveyCXM assisted clients with better customer experience?
SurveyCXM is the NPS tool developed & deployed by QDegrees that assists in maintaining a competitive edge by understanding the customer's real-time issues. With its help, we improved the end-user experience for a popular finance company. There were several issues in making online payments through QR Scanner. So, the CX practitioners suggested the company build features that allow direct online payments with the out-app QR Scanner and mobile numbers.
Similarly, in another case, one company faced scanning issues at TAT that led to long queues at the toll plaza. With the data gathered by SurveyCXM, the company undertook frequent audits on tolls to ensure scanner performance and followed valuable inputs. Another housing company faced issues with a low CX score, so the NPS tool helped to suggest various methods like an online booking feature, seating arrangements, and improving the ambience, revamping the store. All this led to a score increment of 55%. All these value additions have been analyzed and rectified with the help of the NPS tool.
Today businesses affected by low scores seek ways to improve their NPS journey. The conventional methods to boost the scores are understanding the pain points, working on them, and figuring out the drivers. Also, detractors and promoters provide further details on the NPS score, leading to a prolific investigation of the customer journey. Therefore, NPS truly is the best CX metric for gaining business growth and customer loyalty.
However, it is suggested to use something other than NPS to measure product success as it is too broad. Instead, it must be used to better know the customers, for example, how satisfied they are and how the company can change this impression over time. Alternatively, there is another upgrade the businesses can try by using an NPS or actual NPS. It works by asking, "Have you recommended this service already? Why or why not?" This ultimately leads to more actionable insights.
Source: QDegrees, MMy customer Qualtrics, CXN, Hubspot