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How to Measure Customer Experience Success: Metrics That Matter

Thomas Limbüchler
Thomas Limbüchler
Managing Partner Strategy
If you take customer experience seriously, you need metrics that indicate success or failure. Ideally, these metrics provide a rough idea, help identify improvement areas, and eliminate obstacles.
How to Measure Customer Experience Success: Metrics That Matter

For entrepreneurs, the bottom line is that the numbers have to add up. I'm talking about metrics such as revenue, profit, projects, and customers. All of these can be directly measured and analyzed.

But what about customer experience? Can we measure customer experiences? The short answer is: Yes, it is possible. The slightly longer answer: Various metrics can be used to assess customer satisfaction and the success of your initiatives.

Key Metrics for Measuring Customer Experience Success

In the competitive landscape of modern business, providing exceptional customer experiences is paramount to success. However, to ensure that your efforts are yielding the desired results, it's essential to measure the effectiveness of your customer experience initiatives with the right metrics to drive continuous improvement.

Customer Satisfaction (CSAT)

The CSAT score is determined through surveys in which customers are asked to rate their satisfaction on a scale of 1 to 5 or 1 to 10.

To calculate the final score, you count all the responses with a particularly high rating, for example, at least 9 on a scale of 10. You then divide this number by the total number of responses. The result is usually expressed as a percentage.

Example: 250 people participated, and 198 were highly satisfied. 198 divided by 250 equals 0.792. This corresponds to a CSAT score of 79.2%.

These surveys can be conducted in many areas, such as evaluating the purchasing process, interactions with customer service, or even the actual product.

Net Promoter Score (NPS)

For the Net Promoter Score, customers indicate how likely they would recommend the company, product, or offering to a friend or colleague. The scale usually ranges from 0 ("definitely not") to 10 (”definitely"). The responses can be divided into three groups:

  • Promoters: These individuals give a rating of 9 or 10. They are precious to the company as they can attract more customers.
  • Passives are individuals who rate with a 7 or 8. They are satisfied but not enough to become advocates. This group has potential for improvement.
  • Detractors: Those who rate between 0 and 6. In the worst case, they may actively discourage others from using the product or offering.

To calculate the NPS, you subtract the percentage of detractors from the percentage of promoters. The result is a number between -100 and +100.

Customer Effort Score (CES)

The CES aims to show how easy it is for customers to achieve a specific goal. Again, a survey is used in which customers rate on a scale ranging from 1 ("very difficult") to 7 ("very easy"). To calculate the score, all the responses are added and divided by the number of responses. The result indicates on the scale used how easy or complex it is for customers.

The CES can also be used in various areas, such as evaluating the product's usability or specific features. It can also be used to assess the purchasing process, searching the support database, or contacting customer service.

Additional Data Sources: Internal and External

Other sources of information can be used to optimize the customer experience in addition to survey data. This includes customer feedback in ratings, reviews, or complaints. Monitoring feedback on your website, the social web, and other platforms is essential.

Existing internal data can also provide insights into the customer experience. This includes the customer lifetime value and the number and type of support requests.

Why Measuring Customer Experience Matters

Insight into Customer Satisfaction

Measuring customer experience allows you to gauge overall satisfaction levels among your customer base. By understanding how satisfied your customers are with their interactions with your brand, you can identify areas of strength and areas that require improvement.

Identification of Pain Points

Effective measurement enables you to pinpoint specific pain points in the customer journey. Whether it's a cumbersome checkout process, long wait times for customer service, or product issues, identifying and addressing these pain points is crucial for enhancing the overall customer experience.

Quantifiable Performance Evaluation

Measuring customer experience provides quantifiable data that enables you to evaluate the performance of your CX initiatives. By tracking key metrics over time, you can assess the impact of changes and initiatives and make data-driven decisions to optimize the customer experience.

Competitive Benchmarking

Benchmarking your customer experience metrics against industry standards and competitors allows you to gain valuable insights into your position in the market. Understanding how you stack up against competitors can help you identify areas where you excel and areas where you need to improve to maintain a competitive edge.

Wrapping Up

Ultimately, there are many metrics that provide a complete overview of customer experience. Instead, the goal is to capture or inquire about data at all critical touchpoints in the customer journey.

For example, the NPS provides a general benchmark for customer satisfaction. However, it does not reveal what is going right or wrong. The CSAT score, on the other hand, can provide insights if regularly collected (and if customers are motivated enough to respond).

The next step is to derive the appropriate actions from the data. Ideally, a clear weak point can be identified, such as in the purchasing process, which can be targeted for optimization. However, sometimes, it will require fundamental changes, including a recognition at the executive level of how important customer experience is for a company to succeed.

To fully understand the significance of these customer experience metrics, it's essential to explore their impact on business metrics. Measuring customer experience not only helps identify areas for improvement but also directly influences your business's bottom line. For a deeper dive into how these metrics can drive tangible business outcomes and improve overall performance, check out our detailed analysis in our blog post on understanding the ROI of customer experience and its impact on business metrics.