How to Define and Measure the Customer Experience

How to Define and Measure the Customer Experience


Defining the Customer Experience (CX)


Experts at Convince and Convert define customer experience as the “combined interactions a customer has with your brand.” These interactions span the entire customer journey from individual consumer touchpoints to customer engagement channels (i.e. chatbots, social media, email, etc.).

Customer experience is subjective, which makes achieving a unanimously positive customer experience nearly impossible. If you surveyed 12 individuals on the same customer journey, each individual’s interpretation of events could be vastly different.

Achieving a generally positive customer experience is imperative since there is a 91% chance that a customer will not do business with you a second time if they are unhappy with your customer service experience or business operations.   

How Do You Measure Customer Experience?

Regularly measuring customer satisfaction, overall exertion, likelihood of repurchase, likelihood of product recommendation, and more, on the customer journey allows your business to identify, moderate and improve key consumer touchpoints.

The most widely applied data acquisition and measurement tools used to measure the efficacy of your existing customer journey in the retail, CPG and FMCG industries are: Net Promoter Score (NPS), Customer Effort Score (CES) and Customer Satisfaction Score (CSAT).

Net Promoter Score (NPS)

The Net Promoter Score (NPS) measures the likelihood of existing customers promoting your business to their personal network as a result of their overall experience with your brand.

The NPS survey provides customers with a straightforward, benchmark question: On a scale of 1-10 (1 being unlikely and 10 being very likely), how likely are you to recommend our brand (or service) to a friend?

Responses to the survey are grouped into three categories:

  1. Promoters rank businesses a 9 or a 10 on the NPS scale. Promoters are loyal and likely to re-purchase. They are brand enthusiasts and will potentially encourage their network to purchase your product or service over competitive options.
  2. Passives rank businesses a 7 or an 8 on the NPS scale. Passives are satisfied with your product or service, but largely unenthusiastic about your brand. They may repurchase, but they are more vulnerable to competitive purchases.
  3. Detractors rank businesses a 0-6 on the NPS scale. Detractors are unhappy with your product or service and can damage your brand’s reputation with a negative review. Statistics show that it takes 40 positive reviews to undo 1 bad review, making it crucial to monitor CX and make adjustments when necessary.

Your Net Promoter Score is calculated by subtracting the percentage of detractors from the percentage of promoters.

Customer Effort Score (CES)

The Customer Effort Score (CES) assesses the customer journey on a micro-level, identifying hiccups in the customer experience process by ranking customer’s effort on a quantifiable scale.

Scores are acquired through the distribution of short, post-interaction surveys requesting customers to rate a specific statement on the provided scale. CES questions ensure the customer provides feedback on a specific process for analysis, for example:

How much do you agree with the following statement: The company’s chat service helped me to resolve my issue easily.

  1.   Strongly Agree
  2.   Agree
  3.   Neither Agree nor Disagree
  4.   Disagree
  5.   Strongly Disagree

In order to effectively measure CES, the survey must be distributed immediately following customer interaction to gauge real-time sentiment.

Customer Satisfaction Score (CSAT)

The Customer Satisfaction Score (CSAT) is a metric used to measure customer satisfaction with a specific business interaction.

The CSAT provides a top-level measurement of customer sentiment by using various points on the customer journey to identify pain points in the process.

CSAT surveys are distributed following a distinct customer touchpoint. Due to their simplicity and brevity, CSAT surveys can be distributed at multiple touchpoints on the customer journey.

Selecting Your Customer Service Metrics

The NPS, CES and CSAT metrics each contribute useful data for customer experience analysis, providing a valuable lens through which to understand the customer journey.

The most effective method for analyzing and improving your business’ existing customer experience is to compound the NPS, CES and CSAT metrics into a robust data analytics strategy. Ed Thomas, VP Analyst of Gartner, recommends that businesses “consolidate all the relevant metrics into a CX dashboard, build a hierarchy of metrics, or construct an index that covers as many aspects of employee engagement, quality, satisfaction, loyalty and advocacy as possible.”

The inevitable result of this data influx is a comprehensive understanding of the customer experience and actionable insights into necessary improvements for a positive customer experience.

 

Are you interested in learning more about how Premise can optimize data to improve your customer experience? Visit us at www.premise.com/retail-audit or email info@premise.com. We can’t wait to help you become more data-driven.