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Key Metrics for Studying the Customer Experience
Customer experience isn’t an abstract set of customer experiences, as it may seem at first glance. It’s an indicator that can be measured and special metrics are used for this purpose.
Customer Satisfaction (CSAT)
This metric helps to determine the customer satisfaction of a company – Customer SATisfaction. It can be used immediately after the customer contacts your company – after buying the product, visiting the website, placing a 22Bet Tanzania bet or communicating with the technical support. The metric will help to detect problems in time and change the situation.
To calculate the CSAT, customers are asked how satisfied they are with the product or service. And to answer, they are offered a scale from 1 to 5 points, where 1 is completely dissatisfied and 5 is completely satisfied. Consumers who answer are considered satisfied: 4 or 5 points.
The results are then calculated using the formula: (number of satisfied customers / number of surveys) x 100 = % satisfied customers. Besides numbers, you can use other symbols in the scale, such as stars or emoticons.
Loyalty of Clients (NPS)
This metric stands for Net Promoter Score. This metric helps to calculate how many people your company has who are willing to recommend you to their acquaintances and, therefore, to bring in other customers. To calculate NPS, consumers are asked, “How likely are you to recommend our company?” – on a scale of 0 to 10 points.
Based on the results, you’ll see how many promoters, neutrals and detractors your company has. They are defined as follows:
- Promoters. These are the ones who scored a 9-10. These people will probably recommend your company to others.
- Neutrals – 7-8 points. For these people, the interaction with your company went unnoticed and they probably won’t recommend you.
- Detractors – 0-6 points. These are the critics who are not satisfied with the interaction with your company and are willing to leave negative feedback.
After the survey, it remains to count the number of clients in each of the three categories and calculate the difference between the percentage of promoters and detractors. If the resulting number is higher than zero, that’s a good result. Even better if the number is above 50. And a fantastic result is if it’s above 70. If the number is below zero, you can conclude that most customers are not happy with your company.
Statistical indicators of the NPS can be directly correlated with the success of the company in the eyes of consumers. The index is used by large (Apple, AmericanExpress, JetBlue) and small companies due to the large number of advantages:
- Speed. One question is all it takes to calculate the index.
- Simplicity. The Consumer Loyalty Index uses common technology, so it’s easy for anyone to understand.
- Comparability. You can compare your results with competitors, because hundreds of companies also use NPS.
Customer Effort (CES)
CES stands for Customer effort score. The metric helps to detect difficulties for the consumer when interacting with your company, for example, when ordering goods in the online store, finding the necessary information on the website, or contacting the service center.
To conduct a study using this metric, customers are asked, “How easy was it for you to do the task?” and asked to answer on a five-point scale: The formula used to calculate CES is: easy customer interaction with the company (%) – difficult customer interaction with the company (%).
It’s worth noting that the question should be asked no later than 48 hours after the consumer’s contact with the organization because you’re asking about the experience of taking a specific action, not the company as a whole.
The easier it is for your consumer to cope, the more positive their experience. If he or she encounters difficulties along the way, the customer may decide not to use your services anymore or even get to the point of making a purchase. With CES, you can identify problems in time and not lose follow-up customers.
All three customer experience metrics can be used offline or online. When customers come to the company in person, they are usually offered to fill out paper questionnaires, which will later be processed by specialists. However, in many cases, it’s more convenient to conduct surveys online, for example by offering to fill out a form after making a purchase in an online store.