Companies with exceptional customer experience achieve higher customer satisfaction rates, reduced customer churn and increased revenues.
What is Customer Experience?
Customer expectations are rising and companies need to keep up with their customer experience. Customer experience is how customers perceive their interactions with your company. On every device, across every touchpoint. When you exceed customer expectations, you deliver great customer experience.
Forrester defines good customer experience as being made up of three things from the customer’s perspective:
Useful —they deliver value
Usable —the value is easy to find and engage with
Enjoyable —they’re emotionally engaging and people want to use them
How to measure CX?
Customer experience initiatives require multi-stakeholder buy-in to track who did what and to attribute success to the correct team. Luckily, measuring customer experience isn’t rocket science. To get started, think what will have the most impact on your overall business and narrow down your metrics. Here’s a list of the most common metrics you can use to measure CX:
1. Net promoter score (NPS)
Net Promoter Score is hugely popular due to its simplicity. It is calculated based on responses to a single question: “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or a colleague?”
2. Customer satisfaction (CSAT)
Your CSAT score is calculated by the sum of respondents that answered somewhat or very satisfied. With follow up questions CSAT can provide more rich analytics.
3. Customer effort score (CES)
Customer Effort Score (CES) is a metric that tracks the effort a customer must make to complete a transaction to the desired state. CES provides actionable data, immediately, meaning you can adjustments quickly.
4. First response time
It’s simple - nobody likes to wait, and customers expect you to respond to their issues in a timely manner. Average first response time is calculated by taking the total of all your first response times and dividing it by the number of cases resolved to find the mean.
5. Problem Resolution Time
As you might have guessed, Resolution Time is the time it takes to resolve a customer's problem. By decreasing your resolution times, you can improve your customer experience.
Link customer experience to business outcomes
You can measure the ROI of delivering great customer experience. Making it easier for the leaders to understand where to invest time and resources to drive improvement.
Recover at-risk customers
Measuring customer experience and reacting in real-time will help you pull back those headed for the exit door.
Engage existing customers
Identify your most loyal customers and offer them rewards and promotions. They are sure to come back and spend more money on your business.
Reduce cost of feedback infrastructure
Having a real-time CEM software deployed across the customer journey will help you keep all data easily available in one place. CRM integrations will help you react in real-time.
Reduce cost of new customer acquisition
When customers are happy they will recommend you. By tracking metrics like NPS recommendations you can easily find a trends and root causes of possible issues.
Engage employees and reduce staff turnover
There’s a correlation between employee engagement and business growth. Engaged employees are more productive and make for happier customers. Employee pulse surveys are a fast and easy way to gather employee feedback.