It’s also no longer sufficient to just focus on good customer service and in today’s market companies must focus on the overall customer experience (CX) to stay in the competition. Today a customer has more touch points along their journey thanks to the rise of digital and mobile platforms.
However, even CX, as a discipline, is starting to mature. What was once a fashionable buzzword has now become a routine category of management reports.
When you optimize for CX, the first step is to measure it. To understand the multilayered concept of customer experience , here are three very important tangible metrics :
- Net Promoter Score (NPS)
- Customer Satisfaction (CSAT)
- Customer Effort Score (CES)
Net Promoter Score (NPS)
In this survey,companies asked their customers to rate, on a scale of 1-10, how likely they would be to recommend their services to a friend or colleague. The respondents are classified into three groups based on their answers:
- Promoters– loyal customers and a great source of referrals (score either a 9 or 10)
- Passives – customers satisfied with the service but susceptible to competitors (score a 7 or 8)
- Detractors – unhappy customers and can damage your brand (score or 6 or below)
This survey is generally followed by an open ended question,like “What is the most important reason for your score?” or “Care to give us your feedback?”.
How is NPS calculated?
NPS = % Promoters – % Detractors
While the NPS can be helpful, it can’t tell you everything about a customer’s experience. Like what is the difference between a 9 and a 10? So it is always good to club it with a set of other survey questions inorder to make more sense out of the them.
It is suggested that we repeat the NPS survey at regular intervals and segment the NPS by types of customers to understand the “why” behind our score.
Customer Satisfaction (CSAT)
While NPS provides a high-level view of a customer’s overall experience, CSAT score offers a more detailed description of which components of the customer journey are in need of improvement.
CSAT scored is measured through averaging the responses to customer surveys, usually mentioning the services, products or customer touch points and asking the consumer to rate them on a scale 1-10, with 10 indicating ‘highly satisfaction’ and 1 inferring ‘No satisfaction’.
Customer Effort Score (CES)
This simple yet powerful metric is used to measure the effort required by the customer during any form of interaction or transaction process with the company ,like on-boarding process , service interaction etc.
Both NPS and CSAT can go through respondent biases. In case of CSAT and CES it’s important to ask the customer what problems they are facing with the product ,rather than asking the customers open ended questions on what they want eg “what they would like to use” or “How would you like us to improve”.Often the customers donot know what they want, but they can clearly communicate what bothers them.