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Metrics for Measuring Customer Experience

You may be going all out to deliver excellent products or services, and you’re sure to have designed your physical or online store to provide a positive customer experience. But have you hit the sweet spot and earned your customers’ approval and loyalty? The only way to find out is by measuring customer experience, and the source of your information on this is your customers themselves. 

What customer experience metrics should you apply, and what should you do with the information you uncover? This article will discuss the top five metrics that businesses use for customer experience measurement and how to use them. 

Read our guide to customer experience.

Net Promoter Score (NPS)

What It Is

“How likely are you to recommend us to a friend or colleague?”  It’s a question you will have encountered many times before. You rate the business from one to ten, and there might be a field in which you can type a longer answer explaining the score you gave.  

How to Calculate It

People who rated your business, product, or service interaction as a 9 or a 10 are your promoters. A score of 1 to 6 indicates a detractor. They’re less than satisfied with their customer experience. The rest are neutral. 

Using this guideline you can calculate the percentage of respondents who are promoters – and you can determine what percentage are detractors. Subtract your detractor score from your promoter score, and that’s your NPS. Anything above 0 is pretty good, and scoring over 50 means you’re doing really well. 

How to Use It

There’s always room for improvement even if you have a great score. If you offer a comments field, you can use it to see what customers loved – and hated – about your business. Want to improve that score? Do even more of what you do well, and look for ways to fix the things that alienate your customers. 

Customer Satisfaction (CSAT)

What It Is

This is a customer experience measurement tool you’ll be familiar with – it’s the typical one to five-star rating you see on review platforms – and there’s room for comments too. 

Your Results

Four and five-star ratings are the ones that say you did everything very well indeed. When CSAT is coupled with comments – as it is on Google reviews, for example, you can find out why people chose the ratings they gave you. 

How to Use It

You can send out your own CSAT surveys, or you can monitor public platforms to see how you’re doing there.  As before, you can use ratings to improve things your customers aren’t happy about – but you can also use them to build relationships. Reach out to people who gave you a low rating if you aren’t sure why they were dissatisfied or want to make amends for their bad experience. Thank people who gave you a good review or rating – they’ll be pleased that you did. 

Customer Effort Score (CES)

What It Is

“How easy was it to use our service / resolve your issue today?” Once again, it’s a customer experience measurement metric you’ll have encountered as a customer. You get to say whether it was “very easy,” “easy,” “neutral,” “difficult” or “very difficult.” 

Another way to phrase it is to make a statement. For example, “It was easy to resolve my question,” and then provide up to seven click boxes with options ranging from “Strongly agree” to “strongly disagree.”

Why it Matters

This is a very important metric because people love it when you make things easy for them. And, of course, the opposite is true when you make things difficult. In the latter instance, they’re less likely to support your business in future. 

What to Do With It

By now, you’ll have guessed that you’d like all or most of your clients to rate doing business with you or interacting with support services to say that it was “easy” or “very easy.” This metric is widely used to evaluate customer service and support, but you can also ask customers about the general ease of doing business. For example, you might ask whether it was easy for them to find what they were looking for on your website. 

As always, your goal is continuous improvement. To get the greatest utility out of your CES, you need to determine what makes customers struggle and consider what you can do about it. 

Churn Rate

What It Is

This hands-off metric for measuring customer experience tells you how many of your customers have stopped supporting your business. Of course, there could be several reasons why they might do that, but extremely satisfied customers generally keep on using the products they’ve grown to love. 

How to Measure It

You can measure churn in currency or as a percentage of customers. It’s not always easy to calculate, but when you sell subscription products or services, it’s pretty simple. Suppose you gain 1000 customers with 12-month contracts and by the end of the year, 800 customers are still using your product. This indicates a churn rate of 20 percent. Alternatively, you can use the revenue value of those customers as your measurement of churn. 

What to Do With It

It’s much easier and less expensive to keep selling to established customers than it is to gain new ones. Use your churn rate as a customer experience measurement tool to find out exactly why customers are leaving. 

Looking for a good place to start? You can follow up with departing customers by sending out a questionnaire offering possible reasons why they left and asking for comments. 

For example, some of them may just have been curious and don’t really need the product. Others may find it difficult to use, or they may be unhappy with the pricing. Leave an option to give you other reasons and wait for the results. To get a good response rate, keep the survey simple. If they’re willing to take a call from your company, you can ask them more in-depth questions.

Once you know why customers leave, you can start thinking about how you might keep them – supposing that you want to. But don’t disregard a departing customer’s point of view before giving it some thought. For example, if a customer says they don’t really need your product, it could be worth finding out what features would make it useful to them. 

You can also use customer demographics, business types, or market segments to make sense of churn. If you’re losing customers in your prime target market, that’s definitely cause for concern. If it’s a niche market segment, you may be less worried since it represents a small percentage of overall sales. 

Customer Lifetime Value (CLV)

What It Is

Customer lifetime value underpins your entire customer experience measurement framework because it translates your results into a metric every business is interested in: revenue. 

CLV is the average amount of money a customer will spend on your business’s products or services during the time that they continue to be your customers. It has multiple uses since it helps to indicate your most profitable customers and who to target when marketing, helps you to make revenue forecasts, and also works as a customer satisfaction metric.

How to Measure It

On the surface, it may seem that it’s only possible to measure CLV for software-as-a-service or online purchases. While it is harder to measure the CLV for products bought in brick-and-mortar stores, store loyalty cards can be a rich source of CLV information. As you’ll have guessed, you calculate CLV by determining the average length of time you retain customers and how much they spend during that time. 

What to Do With It

There are dozens of practical things you can do CLV, but in this article, we’re applying it to customer experience management. Obviously, you’d like to increase both customer lifetime and how much they spend with your business. One of the best ways to do that is to create fantastic customer experiences. 

Throw in a bit of cross-selling or upselling where appropriate, remembering that you should only do it when it offers what customers want and need. Meanwhile, keep working on all the things that enhance customer experiences. The best place to see whether you’re getting it right? You guessed it! CLV. 

Uplift Customer Experience With RSVP

You’ve got the metrics to measure customer experience. You have plans to take it to the next level. We have the customer experience “secret” that will impact those metrics positively and give you even more in-depth data to work from. And what might that be? It’s good, “old fashioned” in-person customer service and support. So, you might wonder, what’s the big secret?  

At RSVP, the secret lies in our people. We offer highly-trained, articulate, and motivated customer service and support operatives that provide best-in-class service to the people who matter to you most: your customers. 

But there’s more to what we do than just keeping your clients feeling well-cared-for. You want market intelligence – to know what your customers are thinking, and what barriers to a positive customer experience they encounter. We listen – really listen – and then give you the information you need to understand your customers’ experience better. The next step for you? Improvement – and with it, growth. 

Let’s work together to make it happen: there’s so much more to outsourced customer service than having someone to pick up the phone. Our London-based offices at Canary Wharf are at your service – get customer-based insights, boost CLV, and develop a razor-sharp competitive edge your competitors will struggle to match. Contact us today for more information.


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