‘You can’t manage what you don’t measure’ is the quote our founders live by, and actually, so should you. Customer experience metrics (or KPIs) are measurements used to evaluate the satisfaction and overall experience of customers with a business or product. These metrics provide insights into the performance of a business and the quality of its products and services from the customer’s perspective. Basically, its answering the question if you’re doing a good job in the eyes of your customer.
In this post, we will evaluate the most popular customer experience metrics used by Customer Experience (CX) professionals.
Most popular customer experience KPIs
There are two categories of customer experience metrics: those gathered via customer feedback surveys and those gathered via conversion and customer support solutions. Though the two can be used alongside one another to give CX specialists the full picture.
Let’s take a look.
CX Metrics gathered via Customer Feedback Surveys
One way to gather CX metrics is by employing a digital customer feedback tool. These solutions enable you to gather user insights into the customer experience, customer loyalty levels, overall satisfaction with the digital channels, online experiences and more. Let’s take a closer look at the top three most commonly used CX metrics gathered using customer feedback surveys.
1. Net Promoter Score (NPS)
Net Promoter Score is like the golden standard in CX metrics. This metric measures customer loyalty by asking customers how likely they are to recommend a product or service to others from a scale from 0 to 10. This type of metric should therefore be used after a transaction has taken place on your digital channel(s). The NPS sometimes gets asked too early in the process, which will most likely destroy your NPS.
Aside from measuring customer loyalty, this KPI also helps you identify who your fans are, allowing you to leverage them for different marketing campaigns (like referral programs or social media efforts). They also shine a light on the customers who are truly unhappy with your product or service, which makes it possible for you to catch them, listen to their feedback and change their mind – Before they start spreading the word to their social circle.
After all, 92% of consumers report that they trust friends and family over any kind of advertising. This can work both in your favour and against you, which is why the NPS score is so important.
Example of a NPS survey from Maxi-Cosi
Read our blog about NPS surveys to learn more about how to get started.
2. Customer Satisfaction Score (CSAT)
The CSAT is a rating of how satisfied a customer is with a specific interaction or experience with a business or product. A typical example of this is a 5-star rating. With so many competitors in the market, it’s important to retain your customers and avoid churn. By knowing what your customers want and meeting these needs, you can increase their loyalty towards your brand and thereby attract many new customers in the same way. CSAT is typically used in feedback forms that are available on websites or apps at all times via a button. It is also a common way of measuring how happy customers are with apps.
Example of a CSAT survey from Tommy Hilfiger
3. Customer Effort Score (CES)
The CES is a measurement we like a lot. In essence, CES measures the ease of an online experience. This is done by directly asking the customer how much effort it took to achieve their goal on your website. Like: ‘How easy was it for you to find what you were looking for?’. The reason we like this one is that it tells you a lot about the customer experience. And in turn, it allows you to take measures to improve it!
Always make sure that you follow this question up with an open comment field where the customer can explain why they are giving their specific rating.
Example of a CES survey from Allianz
CX Metrics gathered via Conversion, Customer Support and CRM Tools
In addition to metrics gathered via customer feedback surveys, there are also plenty of KPIs that can be extracted from solutions such as conversion tools, customer support tools and even the most basic CRM tools. Let’s take a closer look at these below.
4. Churn Rate
Everyone’s most hated metric, but so important for the future of your company! Churn rate is the measure of the percentage of customers who cancel or discontinue their use of your product or service in a given period. This metric is particularly useful for organisations that work with user subscriptions such as SaaS (Software as a Service) organisations. This number must remain low so that your organisation can compensate for its Customer Acquisition Cost (CAC).
By analysing your organisation’s churn, you can improve both your customer service efforts as well as online customer experience.
Source: HubSpot
But wait… is churn a feedback thing?
Well… not really but also not not really. While this metric is not listed under customer feedback surveys, organisations can actually use feedback to gather more insights into why customers churn! These surveys are called ‘exit surveys’, which typically take the form of an email survey (i.e. following an ‘unsubscribe’ or cancellation) or in the moment on your digital channel (i.e. drop offs in the checkout funnel). This feedback can give you great insights into why customers decide to churn. Maybe you’re too expensive, maybe your product isn’t needed anymore or maybe the UX is a bummer. This information will give you actionable insights and might keep other customers on board!
5. Average Handle Time (AHT)
The Average Handle Time is a (more traditional) customer experience and customer service metric that measures the amount of time it takes for a customer service representative to handle a request or issue. With this metric, it’s important that hold times are minimised, talk times are optimised and customer satisfaction is improved.
Source: Zendesk
Looking to lower your AHT? There are also more digital-first ways of improving customer support. These are solutions like chat or self-service online content that guides customers through their issues or a process. This lightens the load on your call center, while also giving customers the freedom to find their solution without long wait times.
Are you already taking these digital steps but are not sure if they’re up to par with the service received by actual call agents? Try leveraging digital customer feedback on your self-service pages (i.e. goal completion rate surveys embedded on the page). This is a great way to see if the information you provide speeds up the support process.
See? There’s really a CX metric for everything… even for CX itself!
6. First Response Time (FRT)
No one likes calling a customer service number after a messed-up order. Having to wait for what feels like hours while listening to a low-quality, horribly pitched song with your phone on speaker mode (you know what we mean, we’ve all been there…) is hardly anyone’s first choice on how to spend an afternoon. Which is why FRT is so important!
The First Response Time is the time it takes for a business to respond to a customer’s inquiry or request. The quicker, the better 😉 By tracking FRT over time, you can identify areas where the support team may be struggling, and take steps to improve response times and overall customer satisfaction.
It’s worth noting that FRT can vary depending on the channel used to contact support (e.g. email, phone, chat), as well as the complexity of the issue being addressed. In general, however, a lower FRT is generally viewed as a positive indicator of strong customer service and support.
7. Customer Lifetime Value (CLV, or CLTV)
This one is more aligned with the churn metric. The Customer Lifetime Value considers the revenue a business can expect from a single customer account throughout the predicted customer lifespan. This measures how valuable a customer is to your business. Not just on a purchase-by-purchase basis but across the whole relationship.
By tracking changes in CLV for customers who have provided feedback, businesses can gain insights into how feedback is influencing customer loyalty and purchasing behaviour.
For example, if a business implements changes based on customer feedback and sees an increase in CLV for the customers who provided that feedback, it can be a good indicator that the changes were effective in improving customer satisfaction and loyalty. Conversely, if the CLV for customers who provided feedback decreases, it may suggest that the changes implemented did not have the desired effect and may need to be revisited.
How do you choose which customer experience metrics to track?
This is a difficult question to answer as it depends entirely on your organisation’s goals. For example, some organisations may be more focused on online customer loyalty and the reasons behind loyalty levels, whereas other organisations may just want quick customer support performance-related CX metrics that can easily be reported to upper management, such as Average Handle Time (AHT).
But hey! Who’s to say you can’t track both feedback CX metrics and support CX metrics simultaneously? In fact, a lot of times these metrics complement each other quite nicely, as you might have noticed by reading this article. For example, perhaps your churn rate alerts you of something happening within the checkout funnel of your website. The churn rate is great for notifying you that there is some sort of issue causing a negative impact on your CX. But it leaves the question: What kind of issue?
Customer feedback (and the additional qualitative data it provides) can give you those answers and more. With metrics like NPS, CSAT and CES, you can deep dive into your data and explore WHY certain scores are trending. This, in turn, helps you better define what you and your team need to do to rectify the situation.
Analysing your customer experience KPIs
By monitoring and analysing these metrics, businesses can identify areas for improvement. It helps them make data-driven decisions to improve the overall customer experience. And the most important thing to do … keep measuring!
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