The rise of social media and the development of technology is the reason marketing experts consider customer experience as the backbone of any marketing strategy.
Every customer is an asset to any company. A business could not run at all without them. Additionally, having a good reputation is important in attracting buyers.
That is why businesses are making sure that their brand would not be associated with negative reviews and bad feedback. Putting a focus on customer experience could help you create a reliable customer base for your products.
Customer experience definition
Customer experience is the overall perception of the client with your business or brand. It is based on every contact the customer had with your business – from browsing your website to talking to customer service and purchasing your product or service.
Everything you do has an impact on your customers’ perception and their decision to keep coming back to your store or not. In short, a great customer experience is key for your business to be successful.
The benefits of delivering a great customer experience include increased customer loyalty and satisfaction and better word-of-mouth marketing, positive reviews, and recommendations.
Why does it need to be measured?
Customer experience is a marketing device that can offer you a sustainable edge over competing companies. It is an ideal approach if you want to remain ahead of your competitors.
It is important to measure your customer experience because it will let you know if there are changes you need to make or if there are conflicts that you need to resolve to serve your clients better.
You would also be able to observe specific areas in your strategy that may be improved. Furthermore, gaining insights and listening to your clients’ comments would make them feel valued and heard.
Common metrics used to analyze customer experience
To analyze your customer experience strategy, you need to use different metrics to track how it improves or worsens over time. These metrics are also useful to evaluate the success or failure of your efforts to deliver remarkable service to your clients:
Customer Effort Score (CES)
Customer Effort Score or CES refers to the effort required by the customer to work through an interaction. This interaction may be simple like browsing on your product list or complicated such as resolving a technical issue.
Buyers are usually looking for a fast and useful solution to their inquiries and dislike expending a lot of effort on a service-related task. CES measures whether your efforts to reduce the interference in your customer experience strategy are working or not.
Net Promoter Score (NPS)
Net promoter score shows how likely your customers will recommend your business to a friend. This metric will also provide you with the percentage of customers who are interested, impartial, or are not satisfied with your product or service.
NPS aims to gather a numerical score to be able to measure the customer experience. To calculate this, you can send a survey to your customers and ask them how likely they are to recommend you to a friend on a scale of 0-10.
Scores from 0-6 are the dissatisfied buyers, 7-8 shows that the customer is neutral, and 9-10 are from clients who would likely promote your product or service to others.
Once you have calculated the results, you can start working on improving the customer experience of neutral and dissatisfied customers.
Customer Satisfaction Score (CSAT)
The customer satisfaction score is one of the most straightforward ways of measuring your customer experience. CSAT determines the customers’ satisfaction with the product or service that they purchased from your company.
Unlike the Net Promoter Score, which asks customers to consider their overall feeling towards the brand and their likelihood of recommending it, CSAT focuses the customer’s attention on specific touchpoints they were satisfied or dissatisfied with.
To calculate this, you can send a survey immediately following a purchase or interaction with your client. This survey will ask them to rate their experience in your store.
The average score of that survey is your CSAT. If you have a low customer satisfaction score, you can begin to improve your company’s customer experience plan.
Time to Resolution (TTR)
Time to resolution or TTR is the average length of time for customer service teams to resolve an issue or ticket after it has been opened. The result can range from some business hours to several days.
You can measure this by adding your team’s TTR and dividing the result by the number of disputes solved.
The leading cause of customer frustration is a long wait or response time. Having a shorter TTR means that your customers did not experience frustration while asking for assistance.
