There are a lot of important metrics and KPIs (key performance indicators) that can help businesses figure out how trustworthy they are to their customers. To figure out how happy customers are with a company and how many people have had a good experience with them, it is important to use the most well-known and standard CX metrics.
There are several metrics available and it is always difficult to choose the right ones. As per the requirement of your business, you need to select the ones that give effective output. However, we have found the five most important KPIs and metrics for customer Experience.
An Overview of Customer Experience KPIs & Metrics
The metrics for customer experience are used to determine how well the customers connect with the business. These metrics allow businesses to improve their standard and smooth line their operations. However, to achieve a competitive advantage, higher profits, and maximum customer turnover, it is solely important to strategize and implement customer experience metrics.
Applying the CX metrics to any business can boost the good experience for customers and end up increasing sales as well. Therefore, it is entirely important to utilize the best-suited metrics in the right way to attain customer delight.
5 Most Important KPIs & Metrics For Customer Experience
Selecting the right metrics for customer experience is an important task for any business. So, we have chosen the best ones that can be used by any business to get the best information about customer service.
1. Net Promoter Score (NPS)
It is one of the best ways to figure out how loyal customers are. It lets the business see where their customers are in terms of good or bad experiences with their services. NPS is very easy, simple, and effective because it gives the best results. It is also very simple and easy to use. Net Promoter Score is based on a simple question. It asks if customers would recommend the business’s services or not and if they would.
Depending on how they answered, the net promoter score puts them into three groups: detractors, passive people, and people who like the company very much. They give a rating on a scale of 0 to 10. The detractors are the ones who give a rating between 0 and 6. The passive are the ones who give a rating of between 7 and 8. The rest are the promoters who give a full rating or the number 9.
To calculate NPS is very fast and easy. All you have to do is to calculate the whole percentage of the customer whom you have done the survey. After that, you need to subtract the percentage of promoters from the percentage of detractors.
Net Promoter Score = Promoters Percentage – Detractors Percentage
However, it is the fastest and most reliable way to get information about how customers feel about their service. The more detractors your business has, the more likely it is to make less money. However, if the number of promoters is higher, it would be assumed that the business is still going strong, which would lead to higher profits.
2. Customer Satisfaction (CSAT)
Customer satisfaction is also a very easy and effective method to measure the customer experience. It is equally easy for customers to give reviews and for the company to keep records of their customer’s responses.
The total rating in CSAT consists of 1 to 5 only.
The value of response would determine the satisfaction of the customers. However, CSAT is the mostly used CX metric around the world.
3. Customer Effort Score (CES)
The customer effort score allows the business to assess the customer’s ease while using the services. It consists of only one question where a customer is asked about the ease of operations. The answer can be in numeric form i.e., 1-5 or it can be put into words providing the scale from “very difficult” to very easy.
On a numeric scale, 1 presents that the customer had a very hard time while availing of the services and the number 5 represents the opposite of it.
However, CES is also an effective measure when it comes to knowing the experience of customers regarding the effort they put in while resolving their problems and or availing of any service. It can be calculated very easily. All you have to do is to divide the total score of the customers’ effort response by the ones who responded.
4. Site Conversion Rate (SCR)
The site conversion rate is defined as the total number of leads that visited and ended up in the conversion as well. For any industry, it is highly recommended to have a higher site conversion rate. The higher the conversion rate, the more the chances of converting leads into sales.
Furthermore, the site conversion rate is the percentage that can be calculated by dividing the number of leads that are converted into sales by the total number of leads and multiplying it by 100.
The conversion rate can be improved by providing an overall decent look to your website, an outlet, or any store. If the customers find the place of purchase attractive then surely there is a high chance that they are going to purchase from there.
5. Customer Retention Rate (CRR)
The customer retention rate is the calculation of the number of customers that came back or did the purchase multiple times.
Customer retention rate can only be improved by providing excellent services. The more the customer is loyal the higher the chances of retention.
Its not easy to earn high CRR until you invest extensively in systems & processes. Outsourced IT help desk services by 31West can help you improve your customer retention rate by a significant count. With our proven processes & 19+ years of industry experience, we have helped companies like Mcdonald’s, ATT, and Black & Decker.
A lot of information about the best ways to get information about customer experience has been covered in this article. Any business, no matter what it does, should use these metrics to improve and fix flaws in its services and operations.
Customer satisfaction, customer retention, customer effort score, site conversion rate, and the net promoter score are the five most important KPIs and metrics for the customer experience.