Customer experience (CX) considers everything a customer is involved with during an interaction with your brand – the tangible and intangible elements alike. So whether they’re in-store, on social media, or interacting with your brand online, you’re creating an experience that they’re either going to love or hate.
CX is all about the customer, and it’s backed up by measurable metrics. Metrics showcase the progress of customer experience initiatives and pinpoint areas for improvement. KPIs are also often connected to finances and play a crucial role in gaining additional funding for customer experience programs and showing the return on investment (ROI) associated with them.
Metrics to Measure Customer Experience
In a recent survey, Gartner said that over 80% of organizations expect to compete mainly based on CX. But there’s quite a big world of data out there to choose from. Here are some of the best customer experience metrics for your business that you can leverage to paint a complete picture of progress for your CX strategy:
- Customer Satisfaction (CSAT)
- Net Promoter Score (NPS)
- Churn Rate
- Cart Abandonment Rate (CAR)
- Average Resolution Time (ART)
1. Customer Satisfaction (CSAT): Are Customers Happy With Your Brand?
CSAT data is the best place to start with. It measures the average score of customers satisfied with your product or service. CSAT surveys can be done by various methods varying from online surveys, calls, focus groups, etc., by asking customers to rate their satisfaction on a scale ranging from 5 that is “Very Satisfied” to 1 that is “Not at All Satisfied.”
CSAT surveys are often given within a few hours after a particular event, which helps brands measure customer satisfaction “on the go”. Today, businesses are even using intelligent AI chatbots to conduct these surveys for gathering CX data in real-time.
2. Net Promoter Score (NPS): Will Customers Recommend Your Brand?
The Net Promoter Score shows the percentage of customers who would recommend your company to friends and family on a scale from 0-10. Customers are simply asked, “How likely are you to recommend this company to a friend or colleague?” Answering with values ranging from 0-6 will mark that person as a Detractor, while ratings of 9-10 mark that person as a Promoter.
There’s no definitive science behind what exactly determines a detractor or promoter, except for promoters having greater loyalty and a higher intent to repurchase. It’s thought that working on improving detractors is more effective than focusing on promoters — but keep in mind, if their issues are significant to them, they might alter their responses!
3. Churn Rate: How Long Will Customers Stay?
A churn rate is a performance metric used to track how many customers stop doing business with a company over a particular time. While some churn is unavoidable, it’s critical to understand why it occurs so that you can address the leading cause and minimize it.
Churn rate = (Lost Customers / Total Customers at the Start of Time Period) x 100.
The lower the churn rate, the better because it implies that the majority of your base is likely to stay with you. In today’s times, that’s a big positive.
4. Cart Abandonment Rate (CAR): Are Customers Really Purchasing?
This is a crucial metric for eCommerce brands. If customers leave their cart full of items but are not buying any, it could mean your customer service needs some reforming. The best way to keep your online store profitable is by offering a great user experience.
Cart Abandonment Rate (%) = 1 – (Completed Transactions/Number of Carts Created)*100
If you are loyal to your customers, they will reciprocate that same loyalty back to you! Consequently, you will also want to check that the percentage of abandoned carts is lower than usual, as even these customers could be potential buyers in the future if you retain them through good business practices and quality products.
Conversational AI chatbots, for instance, are known to reduce cart abandonment rates by many times, by efficiently pointing potential buyers to relevant offers and resources.
5. Average Resolution Time: How Quick Is Your Customer Support?
Customers raising tickets is the clearest sign for you to identify your customers’ pain points. Ideally, you want tickets/issues resolved as fast as possible to minimize your customers’ pain and increase their satisfaction.
Average Resolution Time (ART)= Total resolution time / Total number of resolved requests.
A whopping 59% of customers will opt for live chat before heading for voice call for query resolution. So it’s clear you’ve got to nail the game from the first step, i.e., live chat.
Again, Conversational AI can help reduce ART dramatically via advanced NLP and precise customizability of the automated responses based on a specific brand’s user intents.
These are just a few critical metrics to measure customer experience. There are other metrics you may want to consider, such as:
- Customer Effort Score
- Customer Lifetime Value
- First Contact Resolution
- Visitor Intent
That said, customer experience is a critical measure you’d want to nail right. Measuring customer experience isn’t enough – you need a strategy that enables both real-time action and long-term impacts to improve the quality of your product or service consistently.
Insync is helping some great brands deliver outstanding customer experiences and ensure long-term customer success through intelligent AI solutions. Use CX data in real-time to stay ahead of your competitors and deliver a superior customer experience through our advanced AI solutions. Reach out to us for a free demo today.