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Effective Customer Experiences: How to Measure Success

Is your organization talking about customer experience? If not, it should be. According to Gartner, 64 percent of people now think that customer experience is more important than price in their choice of brand.

To ensure that their customer experiences are as memorable and effective as they were designed to be, organizations look to quantify how customers perceive these experiences. Here is a look at some common ways customer experience is measured in organizations of all kinds.

Net Promoter Score (NPS) is probably the most well-known customer experience metric. The Net Promoter Score is calculated based on customer responses to one question: “How likely is it that you would recommend [name of brand] to a friend or colleague?” NPS is used to measure customer loyalty and, since it is so widely used, it can also help organizations benchmark against others. One challenge with using the NPS is that, while it can convey customer sentiment about your organization, it cannot tell you reasons behind that sentiment or how to improve it.

Net Promoter Score respondents are considered promoters (ranking 9-10), passives (ranking 7-8) or detractors (ranking 0-6). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. NPS can range anywhere from -100 to 100, and actual average scores vary widely by industry.

To get to the reasons behind why customers feel the way that they do, many organizations use satisfaction as a vital customer experience metric. There are a number of different ways to measure satisfaction, but one commonly-used approach is to ask customers how satisfied they were with a given transaction or interaction by asking them to rate that particular experience and provide feedback on why they gave the rating they did.

This approach works well for keeping a regular pulse on customer sentiment, but may not work well in industries where purchases and customer interactions happen less frequently. In cases like these, a lengthier semi-annual or annual customer satisfaction survey would be a more effective approach.

While many customer experience insights are gained from customers themselves, organizations can also use internal metrics to gauge customer experience effectiveness. Response time is one such metric. In a restaurant, for example, one measure of response time would be the amount of time it takes for food to be delivered to patrons after they have placed their order. Organizations can also look at the number of referrals they receive from customers and the revenue earned from those referrals as a measurement of customer experience effectiveness. Customer churn rate, which is the percentage of customers who don’t make a repeat purchase or cancel a subscription service, can provide additional insight into the success of your customer experience.

2017-09-18T13:39:21+00:00 By |Customer Experience|0 Comments

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Liz McBrayer is ClickDimensions' Content Marketing Manager.

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