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Find out the Ideal Metrics to Measure Customer Experience

Posted August 8, 2018

The majority of the businesses have already realized the value of great customer experience. The brands that deliver a seamless customer experience are most likely to have a mouth to mouth publicity through each customer and grow exponentially as a result. Quantifying the customer experiences through the feedbacks, surveys, reviews and several other factors are the most important thing if you want to achieve the desired result in delivering customer experiences.

Image credit: Max Pixel, CC0 Public Domain

Let’s get into some statistics to understand the impact of CX on business profit expansions and growth.

According to research conducted by the Harvard Business Review, the brands that have good CX score have experienced a good growth in sales.  If we talk about facts:

– Research conducted by McKinsey says 70% of the buying experiences are based on the feeling of the customers on how they are being treated.

– The demand for OmniChannel customer experience will be multiplied by 2020- according to PWC.

Customer experience is measured in the qualitative and quantitative way and the impact of CX is measured across the organizations. Measurement gives the businesses a definitive path which they can follow to improve the customer experiences through the facts, realistic strategies and implementations of the strategies.

Comparison of the Major CX Metrics

CX Metrics like NPS, CSAT or CES are used to help the organizations finding the root cause of the problems and let the focus straight on finding solutions. Finding the best CX metrics is a journey and a continuous process. Before going into a comparison, let’s check out what these metrics are used for and how they measure CX in an organization –

Net Promoter Score (NPS)

Net Promoter Score metrics is a very simple way to measure how the customers feel about your services. The score is given by the customers in the count from 0 to 10.

Based on the scores your customers have given to your organization, they can be divided into three major categories:

Promoters – If you have got a score of 9 or 10 from a customer, that means they are very satisfied with your services and customers are going out of the box to recommend you for other businesses. These customers can be called as your promoters.

Passives – If you have got a score between 6-8, it means that the customer is happy with the service you have delivered, but they will not go out of their way to talk about your business. These customers are called Passives.

Detractors – If you get a score below 6 for your services, your customers are not happy with your services and may change their mind to cancel the contract for further requirements. So, these customers are detractors.

Now, once you get a score from the customer, say through a marketing campaign you have conducted, you can calculate your NPS. The total number of promoters minus the total number of detractors is your NPS score.

Customer Satisfaction (CSAT)

Customer Satisfaction is used to measure how the customer feels about a particular product or about a particular service delivered by you. One question is asked to measure CSAT to measure your CSAT score – how do you like our product? The answers are given like – Not satisfied, Somewhat Satisfied, Very satisfied or through a score from 0-5. So, CSAT is measured by the sum of the number of customers answered ‘Somewhat Satisfied’ and ‘Very Satisfied’. The CSAT score is used to calculate the Customer Satisfaction Index (CSI).

Customer Effort Score (CES)

The Customer Effort Score is the metric to identify how much effort the customer had to put in order to make a transaction and complete the process. The rating is given on a scale of 1 to 5, in which 1 denotes very little effort and 5 denotes a very big effort. This metric can be calculated through more defined or personalized questions according to the brand, product or services.

Customer Lifetime Value (CLTV)

This is a metric which defines how valuable your customers are to your business through their journey starting from the onboarding until their last engagement. CLTV is the new age financial metric for the businesses which takes the revenue implications into account through the complete journey of a customer with them through the aspects of ongoing customer engagements.


Each of the metrics has their own usage, limitations, and applicability. CSAT and NPS – both are used to find out what a customer thinks about your business. The difference is CSAT is focused on short-term and focused on specific products, while NPS is used to measure long-term customer happiness and focused on the organizational level of services you offer.

CES focuses on the efforts the customer had to put through the transactions in order to get desired results. The lesser the effort is, the better the score you get.

Customer lifetime value looks into the overall picture starting from the onboarding of the customers to their current and ongoing engagements, the complete journey.

There are many other metrics available in the market to measure the CX like First Response Time, Problem Resolution Time, Contact Volume (By Channel), Social Listening Stats, Referral and Review Rates and more. Each of them focuses on a specific aspect of a customer experience journey.

Steps to find out the right Metrics for your business

Measurement of CX is important to understand the business challenges and it facilitates the business conversions that are achieved by investments, setting priorities and ROI (return on investments) for the businesses. The CX Value equation works mainly on:

– Acquisition (To increase sales)

– Retention (Building relationships and monetization)

– Efficiency (Investments)

1. Work on the outcomes

Having a definitive and measurable outcome is necessary to get an effective CX Metrics. The reasons for the failure of CX programs or management campaigns is the CX Metrics are created using the volume of data the face value. It does not necessarily produce the desired results. Reduction in volume in order to achieve defined quality and quantity produces definitive and measurable outcomes from the integrated marketing campaigns.

2. Getting the complete picture is the key

All the data provided by the customers during the marketing campaigns should be considered while creating a CX Metric, even if the data seems to be not valuable. This will help the organizations understanding the needs and preferences of each individual customer and lets them get the full picture of customer base and customer segments.

3. Engage the customers in the process

Engaging customers while creating a CX Metrics or sharing that after the creation will take the success to the next level. Customers know better what works for them. Therefore, engaging them in the process of managing an integrated marketing campaign will help to create an ideal CX Metrics and enhance customer trust. The integrated marketing campaigns can be done by engaging the employees as well as the customers, to get the complete picture.

4. Work towards making the right CX strategy

In order to achieve the success of the marketing campaigns or management campaigns and take the outcome to create a better CX metric which will lead to remarkable customer experience, brands need to find out better and optimized CX Strategy.

A brand must consider the following key points when making a CX strategy:

– The flexibility of the channels –

Consumers try to interact with a brand through different channels and the customer journey contains different touchpoints. A good CX strategy provides the flexibility for the customers to switch through the touchpoints when needed without compromising the previous interactions or communications.

– CX Personalization

Personalization is the key to achieve a seamless customer experience. No one has the time to read out and adhere to a brand’s term and conditions to get the most out of any service. The present and the future, customers will need everything as they like. A personalized service, plans, subscriptions, transactions and communications through multiple touchpoints are required to achieve the omnichannel customer experience. It is important for the acquisition, retention of the customers and profitability of the business.

New age brands specifically the telecom sector is adopting the predictive analytics or vector analytics for mapping an ideal CX metrics through factors like weak signals, regression modeling, transcript analytics, predictive modeling and campaigns for a survey of weak signals to improve the experience of their customers.

According to studies, the brands with omnichannel customer experience strategies will retain 89% of their customers in comparison with 33% of the companies with no or weak omnichannel CX strategies. A futuristic approach to find or create the ideal CX metrics and a clear CX strategy will help you get better in achieving the ultimate customer satisfaction through your services.

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