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In the CX world, tracking these metrics is a way of life!
CloudCherry | Featured | March 30, 2017
As much as success is about dreaming big, the path towards it is all about setting precise targets to hit or even surpass. Usain Bolt bettered his own 200 meters world record of 19.30 seconds in 2008 with a mind boggling 19.19 seconds in 2009! Ronaldo and Messi, two of the most gifted footballers of our generation, have a renowned reputation for continuously improving their numbers – goals, assists, trophies, you name it – with each season.
So, there you have it. In order to truly taste success, you will have to track your goals and keep improving on the numbers. This statement makes as much sense for a sportsperson as it does to a business. And if a particular business is aiming for long-term growth, it requires key, powerful metrics to base its performance on.
A couple of years ago, these metrics had a proclivity towards transactions and sales. But now with the explosion of Customer Experience into the mainframe, tracking more of experiential metrics has become the norm, and if you aren’t doing it, chances are that you’re actually clueless about how your business ranks against competitors and also in the minds of consumers.
So, what are the most-necessary Customer Experience metrics your Business should keep tabs on?
The Net Promoter Score needs no grand introduction. The ‘holy grail of metrics’ is used by most companies worldwide to track customer loyalty.
Based on responses to the question: “How likely is it that you would recommend our brand to your friends and family?” on a 10 point scale, customers are either as classified as detractors (0 to 6) or passives (7 and 8) or promoters (9 and 10).
Detractors are the unhappy, frustrated customers while Passives are the neutral ones who neither despise nor love your brand. Promoters, on the other hand, are your loyal and happy customers, who would gladly promote your brand in their circles.
The prominence of Net Promoter Score stems from its ease of use, versatility (can be applied to businesses of any scale) and a simplistic working model.
Customer satisfaction is another crucial metric that businesses rely on to gauge customer happiness as well as loyalty. In simple terms, CSAT can be defined as the average score that customers rate a particular experience with your brand, like the delivery experience or ticket booking experience.
In order to measure customer satisfaction, customers are asked to rate a question/set of questions based on their level of satisfaction. The answer scale varies from ‘highly satisfied’ to ‘highly dissatisfied’.
The theory here is that customers who are highly satisfied are least likely to defect to other brands whereas those who are highly dissatisfied are the most vulnerable to do so.
The Customer Effort Score deflects away from the loyalty quotient and instead, helps you quantify the effort put in by a customer to complete a task – be it searching for company information or reaching a live agent to solve a query.
Here are some common questions in a Customer Effort Score survey:
• How much effort did it take to find out our company’s contact information?
Answer choices ranging from Very Low Effort to Very High Effort.
• The live agent made it easy to understand my query and solve it.
Answer choices ranging from Strongly Agree to Strongly Disagree.
The Customer Effort Score is also an indication of whether or not your business is actually ‘customer-friendly’. Is the customer is able to effortlessly get in touch with you and have his/her queries addressed by spending as little time and effort as possible?
Customer Churn Rate, directly linked to loyalty, is indicative of how good/bad your business is at retaining customers.
In most business models, churn is the percentage of customers who don’t conduct repeat business or cancel their subscription. Churn percentage is calculated by dividing the total number of lost customers by the total number of active customers for any period of time.
Churn should be tackled in advance, before it grows out, which makes tracking this metric even more integral to your business’s survival. If left unattended, churn can wipe out your business before you even realize it.
So if your dreams are big enough to ace Customer Experience
• Write down the targets for these above-mentioned metrics
• Have a company-wide discussion on these targets. Every employee should work towards improving these metrics, and consequently the customer experience.
• Conduct weekly/monthly reviews to keep track of the journey towards hitting these numbers.
It’s high time you get started – start tracking and start improving – and we’re always there to guide you!