Measuring your customer journey with customer experience metrics
Customer experience is an important aspect of companies in any industry. Your customers keep your business afloat. With this, you should always know how to improve their experiences in every transaction they have with your company. In the end, they only want you to take care of them and get in touch with your company.
But how do you know if they are satisfied with your business or not? Here are some metrics you can use to measure their customer experience.
Net promoter score (NPS)
NPS shows the rate of customers who will likely refer your businesses to other people. Usually, this is measured through a single question asking how customers are likely to refer you to their friends or colleagues, on a scale of 0-10.
Depending on what rating they give, customers are classified into detractors, passives, or promoters.
Customer satisfaction (CSAT)
Meanwhile, CSAT tells you the overall satisfaction of your customers to your services. Aside from numerical ratings, you can measure CSAT on a level of “not satisfied” to “very satisfied” in several ways.
Companies usually give CSAT surveys a few hours after the transaction or an event to measure it right at the moment.
Customer effort score
Similar to CSAT, CES, meanwhile, measure how much effort did the customer give during the transaction.
Customer effort comes in many ways. In phone calls, it can be the time they take to reach an agent. For websites, the overall loading time and navigation it takes to get their purchase. CES is usually measured in three things: “easy”, “neither”, or “difficult”.
Customer retention
This metric determines how many customers come back for a second purchase. Usually, customers return when they have a great experience from the company. This also helps you lower your overall costs in attracting new customers.
Repeated purchases from the same customer contribute to their lifetime value with your business.
Customer lifetime value (CLV)
CLV counts a customer’s overall amount of contribution to the company. Every purchase each customer makes adds up to their Customer Lifetime Value.
This also shows how much you have saved from attracting new customers and your return of investment (ROI) in sales, marketing, and acquisition, and customer experience.
Churn rate
This metric, meanwhile, measures the rate of customers who stop making purchases at your company. Churn rate is computed by dividing the number of customers lost over the number of active customers.
With this, you get to have an insight into how much profit you have lost and why your customers are happy or unhappy with the company.
Referral rate
While NPS measures how likely they will refer you to other people, referral rate tells you the actual number of successful referrals. You can measure referral rate in different ways.
This includes having a referral program that tracks each automated email sent to leads and their actions done to it.
Customer reviews
You might as well look out on reviews and recommendations your customers post on social media or review sites. This metric is most relevant to eCommerce stores and even physical stores with live websites.
To do this, set up a Facebook page or an account to a site such as Yelp and ask your customers to leave a review on these pages.
Cart abandonment rate
Lastly, there are some customers who fill up their carts but make no purchase at all. You can measure this through cart abandonment rate.
Loyal customers don’t really abandon their carts if they don’t have a reason to. This metric can help you check on its cause as a part of trying to improve your customer experience.
In the end, the goal of these metrics is to guide you how to keep your customers satisfied with your business. These, when put to good use, will help you run your business successfully and grow your market in no time.
