CX Metrics That Matter
As Experience has replaced differentiating product features as the competitive landscape that organisations battle today, we see more and more companies shift their attention to try and quantify that experience. While in the past decades, we have seen organisations of all sizes utilise different sets of data to do this. Most are still trying to grasp the right statistic for their needs.
Lets touch on the CX metrics utilised today and discover how it fits your organisation:
Net Promoter Score (NPS)
Net Promoter Score has been one of the most popular since its inception from Fred Reichheld and Bain & Co. The score is a determinant of business growth based on the loyalty of customers and advocacy.
NPS surveys are design first by asking the ultimate questions “How likely are you to recommend [Company] to a friend or colleague?” and ask the customer to respond on a scale of 0 to 10.
This allows the respondents to be segmented into the dectractors (0-6), neutral (7-8) and promoters (9-10). The Net Pormoter Score is calculated as the percentage of Promoters less the percentage of Detractors and is expressed as a percentage score. The higher the number the better.
NPS can be used to measure an individual transaction, episode or the overall relationship to the brand. In terms of CX Metrics that Matter, this is the most commonly adopted approach today.
Customer Satisfaction (CSAT)
Customer Satisfaction Score is the methodology in measuring satisfaction directly. Whereas NPS and CES are measuring advocacy and loyalty respectively. CSAT can be a comprehensive yet simple way to measure specific transactions, episodes and overall relationship to the brand. However, unlike NPS, it cannot be used as a predictor of revenue growth, but as a way to highlight to future potential clients as positive rating or review.
The questions of a CSAT survey is based on the likely outcome you’re looking for with a rating system that scales often from:
- Highly Satisfied
- Neither Satisfied or Dissatisfied
- Highly Dissatisfied
- Not Applicable
To capture the best outcome and specific results is to direct the questions to either the transaction, episode or overall brand relationship.
How satisfied were you with your most recent purchase? – Last transaction
How satisfied were you with the completion of the job done overall? – Episode
How satisfied are you with [brand]? – Overall relationship with the brand
In terms of CX Metrics that Matter, this is still being utilised as a method to dig deeper into the drivers of why behind the score.
Customer Effort Score (CES)
Customer Effort Score is relatively new in comparison to the other measurement tools. This score is a focus on the effort that a customer is required in each interaction with the company. The idea is the less effort it requires a customer to find your products and information about it, also the less effort it is for support, will create loyal customers.
The survey design revolves a specific question that can be adjusted again for transaction, episode or overall brand relationship. “How much effort did you personally have to put forth to handle your request?” with the answer on a 5-point scale has from Very High Effort to Very Low Effort.
In recent years, however, due to the difficulties in translating “effort” into other languages, the question has been changed to “The company has made it easy for me to handle my issue” with 7 point scale that range from Strongly Agree to Strongly Disagree.
According to CEB, Customer Effort Score (CES 2.0) is 1.8x more predictive of customer loyalty than CSAT and two times more than NPS. They do mention it is best for a multi-facet approach which does include NPS as a predictor as well.
In terms of CX Metrics that Matter, this is being adopted, however, still not have had the adoption like NPS. However, it does go hand in hand with the other Metrics that Matter.
Recently organisations have started utilising Overall Satisfaction score (OSAT) within their surveys as an added measure to gauge loyalty. Other statistics range from industry to industry include speed and quality of service, average time to respond, customer churn rate as measures to gauge where the organisation can drive loyalty and improve overall customer experience.
It is common to see CES used complimentary to NPS as a predictor for organisational growth and advocacy but also a measure for loyalty. Whereas, CSAT being used individually on occasion to understand a specific transaction or episode. However, in the current state of the market where all of these practices are put into play by a number of companies, it is critical to ensure you’re managing survey fatigue and creating a unique experience whilst garnering survey responses.
This should give you grasp of what CX metrics that matter. How you adopt the metrics depends on the outcome you’re trying to achieve.
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