Important Customer Experience Metrics
Analytics tools in the customer experience field have been evolving and growing, and companies need to start utilizing them sooner rather than later. That way, they’ll be able to precisely pinpoint what is and isn’t working for their customers, and improve the overall experience they have when interacting with a business. However, when utilizing customer experience analytics tools, companies have to be mindful of which metrics they want to track so they can measure them and get accurate results. There are different metrics that companies can choose to track, but it’s smart to start with the most important ones.
The customer satisfaction score (CSAT) is simply a numerical expression of the number of satisfied customers for a specific product or service that the company provides. Plenty of businesses tend to use this metric to stay on top of the overall happiness of the target audience and figure out if there are any elements they need to start improving. When a company keeps track of its satisfaction score, it can figure out the number of satisfied and unsatisfied customers, plan any future product developments, prioritize which areas of the company need to be improved, and improve different internal processes. The best way that companies can keep track of this metric is by simply asking the customers to rate their satisfaction on a scale in surveys, through chatbots, or feedback forms.
Companies that want to figure out their promoter score (NPS) need to look at the feedback they receive as well as the overall customer loyalty. Although there are plenty of different ways that companies can calculate this metric, one of the most common ways is to simply use a scale of 1 to 10, where 1 is unsatisfied customers, while 10 are extremely satisfied customers. To get accurate data, it’s important for companies to ask their customers how likely they’d be to recommend the business to others using that scale.
Another important metric that companies need to track is the churn rate because it’s able to tell companies the reasons why customers might be leaving a business, and what that business can do to retain more of them. Most companies tend to focus on this specific metric because if the churn rate starts to increase it can lead to lost revenue and cost the business a lot. There are different ways that companies can calculate this metric, with the most common one being dividing the number of customers that have stopped doing business with the company over a period of time by the total number of customers at the beginning of that period. Any result over 10% tends to be too high for most industries, with a few exceptions. The best way for companies to decrease their churn rate is to improve the customer experience and give consumers great customer support.