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The 4 Best Customer Experience Measurements

“If you can’t measure it, You can’t improve it” – Peter Drucker

Taking the time to build and implement a customer experience strategy takes time and hard work. You need to make sure your hard work is paid off and your customers are engaged, happy and satisfied with your service.

So how do you do that? By using customer experience metrics to measure and consistently improve on the service you’re providing.

In this article I'm going to share with you the key customer experience measurements you need to monitor and how to choose the right one.

What is Customer Experience Measurement and Why Do We Measure Customer Experience (CX)?

Customer experience measurement is the practice of measuring customer experience at all points of the customer journey. Measuring customer experience allows businesses to tailor their business in a more customer-centric and personalised way.

Why You Need to Measure CX.

Measuring CX is not just an additional option in your customer strategy. Rather, it is a must for any business that works with clients.

Here are some of the key benefits of employing CX measurement into your strategy:

- It gives you a better perspective of the product-market fit, customer satisfaction, and expectations.

- Helps to improve service quality.

- Helps to improve customer engagement, advocacy, and increase loyalty.

- Helps to set goals and enables future improvements.

- Helps you make your customers more satisfied with your business.

How to Choose the Right Metrics for Customer Experience

The first step to choosing your metric or combination of metrics is to determine exactly what you want to measure.

  • Is it a specific product or service?

  • Is it the overall satisfaction of a ticket desk service?

  • Will the customer be likely to purchase again?

  • Is it related to the speed of service?

  • The performance of your live chat function?

Once you determine what you want to measure, you can then choose the best method to use or the best combination of methods.

There’s no single metric that will work for every company in every industry – here are some of the most popular metrics used to measure customer experience.

1. Net Promoter Score (NPS)

Let’s start with the Net Promoter Score. The NPS score focuses on customer Loyalty – specifically it asks ‘how likely are you to recommend the product or service to a friend or colleague?’.

Respondents give a rating between 0 (not at all likely) and 10 (extremely likely) and depending on their response, customers fall into one of 3 categories to establish an NPS score: Promoters, Passives and Detractors.

  • Promoters respond with a score of 9 or 10 and are typically loyal and enthusiastic customers.

  • Passives respond with a score of 7 or 8. They are satisfied with your service but not happy enough to be considered promoters.

  • Detractors respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you

The score is then calculated by subtracting the percentage of detractors from the percentage of promoters.

NPS focuses on the loyalty to a brand or a product and allows you to measure the overall customer experience across the board rather than just one incident or transaction.

The NPS Score is a customer experience metric that measures customer loyalty.

Customer Experience Measurements: NPS Score

2. Customer Satisfaction Score (CSAT)

The next metric to measure customer experience we’re going to look at is the Customer Satisfaction Survey. CSAT is the average satisfaction score that customers rate a specific experience they had with your company. This type of survey is traditionally the most common method for customers to give feedback. It’s usually based on a scale of 1-5, 1-10, a happy to sad face emoji or satisfied to unsatisfied.

This survey can be short with just a few questions and can be done in various ways (over the phone, online, in an email) which makes it easy to implement and measure.

This survey is often used at the end of a service to see how satisfied the customer is. A great example of this is at the end of a live chat session there is often a quick survey to say how the agent responded to your query.

Customer Satisfaction Score is a customer experience metric to measure satisfaction.

Customer Experience Measurements: Customer Satisfaction Score

3. Customer Churn Rate

The next measurement is Customer Churn Rate. This is the percentage of customers who stop purchasing over a certain time period. For example, take the total number of lost customers over a 12 month period and divide this by the total number of customers. This will give you your churn rate.

This measurement helps you to look at the health of your company. In order for your company to grow your new customer acquisition numbers must exceed the number of customers who churn.

You can measure this metric by dividing the total number of lost customers by the total number of active customers for any given period.

Customer Churn Rate will help you to measure the health of your company.

Customer Experience Measurements: Churn Rate

4. Customer Feedback

Lastly and importantly, Customer Feedback. There are many ways to capture customer feedback for example, product reviews, external review websites, customer forums. With many of these using some form of scale like 1 – 5 which gives you a star rating.

If your customers are reviewing your company online then it’s important to listen to what they’re saying. You can monitor how happy your customers are, the quality of a particular product and you can quickly solve problems by reviewing a problem a customer might have had.

Measuring customer feedback might take more time but will offer some very detailed insights.

Listening to customer feedback will give you actionable insights.

Customer Experience Measurements: Customer Feedback

Customer Experience Measurements Are Not a One Size Fits All!

It’s vital you take the time to track and measure your customer experience metrics in order to continually improve your customer experience.

Whatever you decide on, make sure that you measure the things that are most important to your customers, and that you can draw actionable insights from. Relying on customer metrics, paired with human insights, will give you an overall view of the customer journey, helping you to continually improve your customer experience.

And finally, if you’re looking for more in-depth analysis of your customer journey’s or help with your measuring your customer experience, get in touch and we'll be happy to help.

We offer various packages depending on your needs, so it doesn’t matter if you’re just starting out or you’ve been reviewing your customer data for years and need a fresh pair of eyes.


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