As a company owner, you probably know that a satisfied customer is willing to buy more and return to your store or institution in the future. This translates into increased profits, better brand recognition, and greater loyalty. How do you measure customer experience? Have a look at the list of 10 metrics that will help you take your business to the next level!
Why is customer experience so important?
Customer experience includes several factors that can translate either into profits or losses. Taking care of your brand image, company recognition and the entire customer journey is the recipe for winning the hearts of current and future buyers.
If you feel that this business field isn’t your cup of tea, you can benefit from professional BPO services. Thanks to them, you’ll have more time to focus on refining other aspects, while specialists will be monitoring your online platform.
How to measure customer experience — 10 useful metrics
The process of measuring customer experience can be pretty challenging, yet rewarding. Take the bull by the horns and check how people perceive your brand. To make the task more efficient, focus on the following metrics:
Net Promoter Score
Thanks to this indicator, you can easily determine what percentage of buyers are likely to recommend your offer to friends and family. This metric owes its popularity to simplicity and accurateness. Just ask customers if they are willing to spread the word about your company. The answer should be provided in a form of a number on a scale from 0 to 10. This way, you’ll get a comprehensive picture of customer satisfaction.
Pretty self-explanatory, right? It’s natural that increasing sales are a sign that implemented activities or advocated strategies bring the intended results. If your profits aren’t satisfactory, maybe it’s time to focus on customer service.
Loyal customers are something each company should fight for. To calculate this metric, analyze how many buyers come back to your store after some time and whether they prefer to choose you over your market rivals. If so, it’s a clear indicator that you’re doing a good job.
Truly satisfied customers engage with your brand. This means that they’re likely to follow your social media profiles, share, link, and comment on your content. Analyze how often buyers try to interact and communicate with your company. What is the average web session time? How many subpages do they visit? All these elements can help you measure customer experience.
Customer Effort Score
This metric comes in handy if you want to see how much effort customers need to put in to interact with the brand and resolve doubts. CES helps to determine which stages of the customer journey need improvement to make it even more enjoyable.
Cart Abandonment Rate
If people notoriously place products in their shopping carts but don’t finalize transactions, it might be a sign that your customer service doesn’t live up to their expectations. Monitor your bounce rate and shopping cart abandonment rate to nip potential problems in the bud.
Customer Lifetime Value
As the name suggests, CLV helps to calculate the value of a single customer to the business. This, in turn, is a useful metric that makes it easier to evaluate whether investments in marketing, web design, or any other elements pay off.
This metric allows you to analyze the costs of acquiring new customers. Of course, you should aim at keeping customer acquisition values low, while making sure that all needs of your buyers are met. A positive customer experience and brand recognition translate into lower CA costs, as a company can obtain new buyers through referrals or word-of-mouth marketing.
A churn rate is a great way to estimate how many customers stopped interacting with your company after a certain time. This metric is assuming that satisfied buyers don’t leave. To calculate it, you need to divide the number of customers who resigned from your products or services in a given time period by the total number of customers at the beginning of that period.
Average Time Resolution
Wondering how much time it takes to receive an answer to an inquiry sent to your customer service team? Well, this is what the average time resolution metric is responsible for. To calculate it, divide the sum of all resolution times by the total number of inquiries. It goes without saying that customers appreciate companies that are easy to contact.
How do we measure customer experience? The takeaway
Measuring customer experience with special metrics is a great way to monitor the effectiveness of activities implemented to refine buyers’ satisfaction. Taking care of your brand recognition, customer experience and loyalty will surely translate into increased profits over time.
Want to learn more? Check out our entry discussing what makes a great customer experience!