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Customer experience is critical to the success of any business. The ability to track and measure customer experience is essential to understanding how well your business is doing. There are a few crucial metrics that you should track to ensure that you are providing the best possible experience for your customers.
Note: WatchThemLive is a customer experience analytics tool that can assist you in gathering CX data. You can analyze data, identify the drop-off points and fix them with the help of this platform. Read on to learn more.
What Is Customer Experience?
Customer experience, also known as CX, is the customer’s perception of their experience with your business. In other words, it is a totality of cognitive, affective, sensory, and behavioral consumer responses during all stages of consumption. These stages include pre-purchase, consumption, and post-purchase. Your customers will experience great customer service if you follow practices like valuing customers’ time, having a pleasant attitude, and providing knowledgeable resources.
Analyze Customer Journey to Measure Customer Experience
A critical step to measure customer experience is the analysis of the customer journey. Tracking your website’s visitors can significantly help you to understand your customer’s journey, analyze it, and see if there is any problem or pain point that customers are facing.
The best and most effective way to track website visitors is to rely on a customer experience tool such as WatchThemLive. This tool will provide you with session recordings and user tracking so that you can take a closer look at the exact journey your customers take. A tracking tool can give you the chance to collect information about your users to monitor their online behaviors such as the duration of their stay, the pages they visit, and the activities they perform.
Watch the video below to learn more about WatchThemLive user tracking feature.
Interested? Sign up and track your users in every possible way.
What Are Customer Experience Metrics?
Customer experience metrics are the KPIs businesses follow that involve customers’ input. A customer experience metric is the metric or data that lets you track and measure the customer’s experience, and you will find out how loyal or satisfied your customers are.
The most popular customer experience metrics are listed below:
1. Net Promoter Score (NPS)
NPS is the most common metric for measuring customer experience. It measures your customers’ satisfaction and whether they are willing to offer your company to others. To calculate your NPS, you can ask your customers:” How likely is it that you would recommend us to your friends and family?” Then, to give you a score between 0 and 10, you can simply subtract the percentage of detractors from the percentage of promoters.
2. Customer Satisfaction Score (CSAT)
The average satisfaction score is tracked by CAST. This is calculated via an automated survey, asking customers to rate a specific experience from “very satisfied” to “not satisfied at all.” This metric is best for gathering up-to-date data as it is fast to calculate.
3. Customer Service Satisfaction (CSS)
CSS is used to measure how satisfied your customers are with your after-sales service. Measuring CSS is through asking clients for feedback after every interaction they have. The data can be collected through forms, pop-ups, live chats, and online surveys.
CSS may not be helpful in providing a complete picture, but you will learn about users’ frequently asked questions and problems.
4. Customer Health Score (CHS)
CHS indicates if a customer is going to come back to you over time or not. CHS looks at behavior patterns over time. The purpose of CHS is to classify your customers as weak, healthy, or at-risk based on some parameters. To check how healthy your customer score is, you can take a closer look at the:
- Action frequency: How much time do customers spend in the product and how often do they come back?
- Breadth of usage: How many customers are using the product?
- Depth of usage: How many of the product’s key features are being used?
Having this information will help you understand if you are standing at the right place, or if you need to make some changes to improve your score.
5. Customer Effort Score (CES)
Customer effort score is used to measure how much effort a customer needs to exert in order to get a problem solved. Some examples of interactions are filling out an online form, looking for a product, or dealing with a technical difficulty. This metric is mainly used to help customers experience improvement by showing places where it’s possible to make improvements and make things easier for customers.
The data is typically acquired through an automated survey where you ask the customer to specify the level of effort required to complete an activity.
6. Churn Rate
Churn rate measures how many customers stop doing business with your company over time. The idea is the customers won’t leave if they have a good experience. To calculate the churn rate, you need to divide the number of lost customers during that specific period of time by the number of customers at the beginning of that timeframe.
Churn rate is the exact opposite of the retention rate.
7. Retention Rate
Retention rate measures how many customers come back for a second purchase. Normally, a positive and strong customer experience can entice customers to return. This can lead to overall costs and create a strong group of return customers.
8. Conversion Rate
Conversion rate is the percentage of users who completed a desired action such as submitting for a weekly newsletter, clicking on a CTA, or purchasing a product. It is helpful for the times you want to check the efficiency of your marketing and presentation efforts in terms of audience sign-ups.
9. Referral Rate
As we discussed before, NPS tracks how willing your customers are to suggest your business to their family and friends, but referral rate measures if your customers really do it. Referral rates can be measured in different ways. You can use a specially designed referral program with unique links for customers individually or use social listening to follow referral conversations.
10. Average Resolution Time
This metric tracks the time it takes to reach a final resolution to a customer service issue. To calculate the average resolution time, you can divide the total number of cases resolved during a period under analysis by the total number of times to resolution. In other words, ART is the average time between a customer’s call for an objection and the time it is marked as “resolved”.
An important fact to mention here is, that the faster you solve your customers’ issues, the higher the customer satisfaction would be. Keep that in mind and put this strategy as a top priority.
How to Use the Metrics to Improve Customer Experience
Here you can see some strategies that help you create a better customer experience and improve customer satisfaction. The more satisfied your customers are, the higher revenue you will have, and your churn rate will decrease.
1. Have a Clear CX Vision
The first step to improve customer experience is having a clear customer-focused vision. You need to set rules and have guiding principles that are followed by every single member of your team.
2. Know Your Customers
The second step is to distinguish different types of customers who deal with your customer support team. If you want to understand your customers’ needs, you need to fully understand the situation they are facing.
One way to do this is to create personas and give each persona a name and personality. For example, Sarah is 30, she likes new technology and enjoys watching video tutorials to learn, but Josh needs education and has to follow precise instructions.
Creating personas will help your customer support team to recognize who your customers are and provide them better support, and become customer-centric.
3. Create an Emotional Connection
Customers become loyal after they are emotionally attracted and see how you make them feel after they buy a product or service. The feeling they have after they purchase something comes from the experience you give them. A positive experience can also lead to your customers’ recommendations.
4. Capture Customer Feedback in Real Time
To get feedback from your customers, you need to ask them, or ideally, capture their screen in real-time. You can use tools that record all the interactions and track the journey your customers take. It can give you valuable information, and you will find out what is functioning perfectly and what needs to be fixed.
5. Measure the ROI from Delivering Great CX
The last step is, well, how do you know if all the investment in your team is working properly if there is no clear business result? Measuring customer experience is a big challenge that organizations face, and they decide to use net promoter score. NPS will collect valuable information by asking straightforward questions and you’ll be able to deliver an excellent customer experience.
Conclusion
Investing time and money to measure customer experience is absolutely critical. The metrics will allow you to understand how your customers find your product and will give you actionable insights into how to improve your product. It can significantly influence your company by decreasing your churn rate or increasing your retention. Another influence it has is that you can see where your teams are performing better and where needs to be improved. The more you know about your products, their functionality, and how your customers are using it, the more positive changes you can make, and eventually, the happier experience your customers will have.
In my opinion, the most important way of measuring customer experience is analyzing the customer Journey for a perfect result; you need to check the tools that can give you a hand in analyzing your customer journey. What is the perfect tool? Sign up in WatchThemLive and give it a try!
