Almost all successful businesses have a set of standard metrics. Learning who your customers are, what they need, and how they can be served better is not just the foundation for a business to grow, but also a significant quotient for avoiding customer churn. Metrics reflect the success of programs that enhance customer experience and recognize areas for improvement. KPIs often have a financial link, too; they are instrumental in securing additional funding for customer experience projects and in demonstrating ROI.
There is massive data out there, but here are the 20 best metrics for your company, to provide an overview of the success of your CX strategy.
- Net Promoter Score: NPS is a great place to start and should be part of every organization’s strategy to keep a finger on their customers’ pulse. NPS shows the percentage of clients who would refer friends and family to your service. It is the most frequently used metric because it is precise and straightforward.
- Sales: This tracks a company’s bottom line and measures whether the sales have risen over a given period or since the start of a customer experience initiative. Organizations focused on consumer service tend to generate higher sales, so this figure will hopefully improve with greater emphasis on customer experience.
- Customer Loyalty: Loyal customers can be influential brand supporters. Achieve this criterion by calculating how often consumers visit after their first buy and by regular purchases show their commitment to the store, instead of moving to a competitor. Loyal customers have a proven record of regular purchases.
- Customer Engagement: Some consumers only interact with your brand to buy, while others believe in having a good relationship with the company. We can quantify the loyalty of your regular purchases by measuring user interaction with brands such as, how often they interact with the company, how much time they spend on your website, and how many times they click on your ads over your competitors, etc.
- Customer Retention: This figure measures how many clients return for a second purchase. Active customer experiences can often encourage customers to return, which can reduce total costs and reduce overall customer churn.
- Employee Satisfaction: An excellent customer experience starts with enhancing employee satisfaction. Monitoring employee satisfaction can be as simple as asking employees whether they are happy or satisfied with their job, or asking them to rate their level of satisfaction on a scale of 1-10. Employees who are more content with their work provide better customer service in general.
- Customer Effort Score: CES measures how much effort clients have to put in while interacting with the brand. It is usually measured by asking clients, “How much effort have you had to make to solve the problem?” with a rating scale. CES helps businesses discover pain points for consumers and find ways to create a more seamless experience.
- Customer Acquisition: Customer acquisition calculates the costs of acquiring a new customer. It includes the cost incurred in marketing, customer experience efforts, and knowledge building, etc. The objective is to maintain low procurement costs without losing out on potential customers. If a company has active customer service and has a strong reputation as a brand, it can reduce the overall cost of customer acquisition.
- Customer Lifetime Value: CLV is just how much a consumer costs to the organization throughout their journey. Customer lifetime value lets brands see what their marketing, acquisition, and customer experience investments would deliver.
- Customer Satisfaction: CSAT measures average customer satisfaction. CSAT is typically used for specific customer encounters, such as calling the contact center or while returning a product. Customers should be scaled on a level from ‘Very Satisfied’ to ‘Not at All Satisfied.’ CSAT surveys are often conducted within hours of an event so that brands are effectively able to measure real-time consumer satisfaction.
- Churn Rate: Churn rate indicates how many consumers have stopped doing business with a company after some time. The idea is that if you provide a good experience, consumers won’t leave. Churn rate is calculated by dividing the customers lost over time by the number of customers at the start of the period. Also, the retention rate is the reverse.
- Average Time Resolution: This metric calculates the total time required to solve a problem from when a customer first raises it to when it is fully resolved. Divide the summation of all resolution times by the number of solved cases in a specific period to find the average. Customers are generally happier and have better experiences when their problems are resolved quickly.
- First Contact Resolution: FCR monitors how many consumers had their problems resolved or questions fully answered on their first interaction with the company. It totals up to a fraction of the company’s total calls. FCR shows if consumers can get the help they need quickly and whether employees have the tools to solve issues directly.
- Visitor Intent: Visitor intent helps answer the question, “Why a potential client has visited the company’s website.” To track the intentions, provide clients with a variety of options and ask to characterize their visit’s primary focus. Visitor’s intent will help businesses refine their websites to best suit what their customers seek.
- Task Completion: Operating with visitor intent, task completion measures whether visitors have been able to accomplish what they were looking for on the website effectively. Task completion assists in separating positive visits from unsuccessful visits and is determined with a simple question of yes/no, which is customers were able to complete the purpose of their visit.
- Stock Price: Customers are significant players, but are not the only stakeholders. Stock price considers not only the growth and sales of an enterprise but also its business prospects for future growth. Companies with strong customer experience will undoubtedly be compelled for further growth and an increased stock value.
- Contact Volume By Channel: Brands must be attentive to how their customers choose to interact with them. Contact volume by channel tracks the number of questions and issues registered on various channels such as mobile, email, talk, or social media. This metric not only helps enterprises better understand their customers but also helps to allocate resources and contact centers in busy times to the appropriate channels.
- Social Listening: This metric illustrates how frequently people on social media talk about you and what they say. Customers sometimes have opinions on brands — can be good or bad — which they do not share with the company directly, but rather tell their family and friends. Social listening monitors the number of times a brand has been mentioned on various online channels, also tracks whether they’re positive or negative. It also enables brands to enter into conversation to fix a relationship if necessary.
- Referral Rate: NPS monitors the willingness of consumers to refer a brand to their family and friends, whereas referral rate measures if they actually do it. Referral rate can be calculated in a few different ways, such as using a specially designed referral program with specific links for each client or tracking referral conversations using social listening.
- Cart Abandonment Rate: When consumers fill their shopping carts but don’t buy, it could indicate that the online experience is poor. Loyal customers don’t abandon a transaction mid-way. Be mindful of the percentage of carts that are left behind, mainly if your web and mobile experience is to be improved strategically.
These 20 metrics can help any organization in understanding its customers and investments better. Data leads to tailored relationships and robust customer experiences. CX platforms are tools that allow businesses to track and manage these key metrics. CX systems typically represent a series of tools that help organizations to set their customer interaction goals. The scale of the channels through which consumers communicate with a business is often so vast that it is difficult to monitor them all with just one solution. Exceptions to that are becoming more common because organizations have identified the value of a rich customer experience.
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