Measuring customer experience: 5 CX KPIs to keep an eye on
Image source: grapestock from Getty Images | Canva
In modern business, focusing on customer experience (CX) is no longer a nice-to-have, but rather a necessity for businesses of all sizes. However, defining a successful customer experience can be difficult because many touch points form the customer journey. By using online surveys, companies can gain quantitative information about the customer experience to actively monitor trends that develop over time. Based on customer feedback, organizations can identify areas for improvement, adjust their strategies accordingly, set better goals for their key performance indicators (KPIs), and strive to deliver the seamless experiences that today’s consumers expect.
Customer experience KPIs
Research shows that CX is now competing with traditional factors such as price and quality in influencing customer loyalty and advocacy. According to Forbes, 77% of consumers consider CX just as important as the main product or service itself. PWC reported that even beloved brands risk losing 32% of their customers after one negative interaction. In addition, poor CX burdens the company with costs. To address this, this article outlines five critical CX KPIs that can be systematically monitored, evaluated, and optimized to help address customer service problems and strengthen a company’s connections with its customer base.
1. % Customer satisfaction score (CSAT)
This KPI measures how customers rate particular interactions with a company, such as getting a response from customer care or processing a return. Users can score their satisfaction with the experience on a scale from “very dissatisfied” to “very satisfied” by responding to an automated questionnaire sent to them. Monitoring the ratings depends on a company’s objectives, but the general rule is that anything above 85% is excellent, and anything below 60% requires rapid attention.
Calculation: CSAT = (Number of Positive Responses / Total Number of Responses) x 100
2. # Net promoter score (NPS)
The NPS, considered the most famous CX KPI, reflects the willingness of consumers to recommend a product to friends and acquaintances. To calculate NPS, a company can conduct a survey of customers from one query: “What is the probability that you will recommend the product to your friends?” The answer is given on a 10-point scale, where 0 is “I will not recommend it in any case” and 10 is “I will definitely recommend.” The respondents can be divided into three groups depending on the scores obtained: promoters, passives, and detractors. The majority of companies consider a score above 80 as excellent, a score between 50 and 80 as very good, and a score below 50 as good.
Calculation: NPS = % Promoters – % Detractors.
3. % Word of Mouth Index (WoMI)
An extension of the NPS index, the creation of the WoMI was motivated by criticism towards the traditional NPS. Researchers believed that the NPS made the incorrect assumption that if a customer does not recommend a product or service, then they are automatically considered detractors. This led researchers to make adjustments to the KPI in order to better reflect reality. It tracks the recommendation, but from the opposite perspective: “What is the probability that you will discourage people from doing business with the company?” This can be rated on a scale of 0 to 10. Those who choose 9-10 on the scale of “dissuading” are categorized as “true detractors.” The threshold varies from one industry to another. It is better to have a lower score, as the target for most companies is less than 10%. To gain a comprehensive understanding of your company’s position among customers, we suggest employing both approaches to obtain a complete picture.
WoMI = (Number of Promoters – Number of Detractors) / Number of Respondents * 100.
4. Consumer Effort Score (CES)
The CES index, which was developed in 2010, is related to the idea that the more effort the product or service requires from customers, the less likely they are to stay with the company. As cited in an article, research by the Corporate Executive Board (CEB) shows that 94% of customers who have an effortless experience are likely to make repeat purchases. The KPI could be measured by the customer’s response to a statement like: “Thanks to the service/product of company X. I was able to easily cope with my problem.” with a rating scale of 1 to 7. Most companies typically receive CES scores ranging from 5 to 5.5. A score exceeding 6 is generally considered above average.
CES = (Sum of response scores) ÷ (Number of responses)
5. Customer churn rate
Simply put, the churn rate is the number of users who stop any interaction with the company. Depending on the industry, this could mean that customers deleted their account, did not re-buy, or simply decided to switch to a competitor. In its simplest form, customer churn can be calculated by comparing the number of customers lost to the total number of customers. By dividing one metric by another, one can get the customer churn rate as a percentage of the total base. The most common acceptable churn rate is 5-7% annually.
Enabling effective CX measurement
KPIs must be monitored and measured in order to improve CX. To do so effectively, a system that accurately collects data from all channels should be considered. This allows requests to be categorized and common issues to be identified. In-depth interviews with both loyal and dissatisfied customers should be conducted to understand the root cause of any problems, as some of which could be related to support services. Consistency in tracking and improving CX KPIs is the key to ensuring decisions and actions in customer service adapt to changing customer sentiment and meeting their needs.
Take your CX to the next level! Visit smartKPIs.com for a comprehensive, 360-degree view of CX KPIs.
Tags: Customer Experience, customer experience key performance indicators, customer experience KPIs, Key Performance Indicators
Massive News
| #
I want to express my deepest gratitude to the site owner for publishing this excellent piece of writing on their site.
Reply
tempmaiol
| #
I just like the helpful information you provide in your articles
Reply
temporary email services
| #
I just like the helpful information you provide in your articles
Reply
حلول أنابيب uPVC في العراق
| #
Hi, i think that i saw you visited my web site thus i came to ?eturn the favor텶 am attempting to find things to improve my web site!I suppose its ok to use some of your ideas!!
Reply
uPVC products
| #
hello!,I like your writing very so much! proportion we keep up a correspondence extra approximately your post on AOL? I need an expert in this space to unravel my problem. May be that is you! Taking a look forward to see you.
Reply
مصنع العراق
| #
My brother recommended I might like this web site. He was totally right. This post actually made my day. You cann’t imagine just how much time I had spent for this information! Thanks!
Reply
WonderFix Glycogen Support Ingredients
| #
I do not even understand how I ended up here, but I assumed this publish used to be great
Reply
uPVC pipe solutions
| #
Hi, i think that i saw you visited my web site thus i came to ?eturn the favor텶’m attempting to find things to enhance my site!I suppose its ok to use a few of your ideas!!
Reply
bwer fittings solution iraq
| #
of course like your website but you have to check the spelling on several of your posts. A number of them are rife with spelling issues and I in finding it very troublesome to inform the reality on the other hand I will certainly come back again.
Reply
bwer Ductile Hdpe Agri Iraq
| #
I loved as much as you will receive carried out right here. The sketch is tasteful, your authored subject matter stylish. nonetheless, you command get got an edginess over that you wish be delivering the following. unwell unquestionably come further formerly again as exactly the same nearly very often inside case you shield this hike.
Reply
bwer Factory Fittings Iraq
| #
I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you’re going to a famous blogger if you aren’t already ;) Cheers!
Reply
bwer Ductile Weld Iraq
| #
What i do not realize is in fact how you are no longer actually much more well-favored than you might be right now. You’re very intelligent. You recognize thus considerably in relation to this topic, made me in my view believe it from numerous numerous angles. Its like men and women are not fascinated until it is one thing to do with Lady gaga! Your own stuffs excellent. All the time handle it up!
Reply
bwer Upvc Weld Iraq
| #
Nice blog here! Also your site loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as quickly as yours lol
Reply
bwer Ductile Upvc Iraq
| #
Normally I do not read article on blogs, however I would like to say that this write-up very forced me to try and do so! Your writing style has been amazed me. Thanks, quite great post.
Reply
bwer Factory Pipe Iraq
| #
I loved as much as you will receive carried out right here. The sketch is tasteful, your authored subject matter stylish. nonetheless, you command get got an edginess over that you wish be delivering the following. unwell unquestionably come further formerly again as exactly the same nearly very often inside case you shield this hike.
Reply
bwer Fittings Iraq
| #
obviously like your web-site but you need to test the spelling on quite a few of your posts. Several of them are rife with spelling problems and I to find it very troublesome to inform the reality on the other hand I’ll certainly come back again.
Reply
bwer Factory Iraq
| #
Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a little bit, but instead of that, this is excellent blog. A fantastic read. I’ll certainly be back.
Reply
bwer upvc agriculture iraq
| #
of course like your website but you have to check the spelling on several of your posts. A number of them are rife with spelling issues and I in finding it very troublesome to inform the reality on the other hand I will certainly come back again.
Reply
bwer hdpe solution iraq
| #
Thanks, I have just been looking for information about this subject for a long time and yours is the best I’ve discovered till now. However, what in regards to the bottom line? Are you certain in regards to the supply?
Reply
bwer Factory Ductile Iraq
| #
Usually I do not read article on blogs, however I would like to say that this write-up very compelled me to take a look at and do it! Your writing style has been amazed me. Thank you, very nice article.
Reply
bwer Pipe Weld Factory Iraq
| #
Fantastic site. A lot of helpful info here. I’m sending it to some buddies ans additionally sharing in delicious. And naturally, thanks on your sweat!
Reply
bwer pipe network iraq
| #
Hi my family member! I want to say that this post is awesome, nice written and come with approximately all significant infos. I would like to peer extra posts like this.
Reply
bwer Ductile Hdpe Agri Iraq
| #
I’ve read several just right stuff here. Certainly price bookmarking for revisiting. I wonder how a lot effort you place to create this kind of great informative website.
Reply
bwer ductile agri iraq
| #
Hi my loved one! I wish to say that this post is amazing, nice written and include approximately all vital infos. I’d like to peer more posts like this.
Reply
Gen AI
| #
Your content always manages to captivate and educate me. Keep up the fantastic work!
Reply
Jayleen Lynn
| #
Keep up the fantastic work and continue to inspire us all!
Reply
fitspresso reviews
| #
For days now I’ve been glued to this gem of a site. The owner works tirelessly to engage fans with quality content. I’m mega impressed and can’t wait to see what they wow me with next!
Reply
fitspresso reviews
| #
Just days ago I discovered this awesome website, a standout for fans. The gifted owner keeps visitors riveted with spot-on content. I’m stoked to be a new member of the community and eager to see what interesting content comes next!
Reply
Sadie Bradley
| #
Your posts always seem to lift my spirits and remind me of all the good in the world Thank you for being a beacon of positivity
Reply
Kaden Rojas
| #
I love how this blog promotes self-love and confidence It’s important to appreciate ourselves and your blog reminds me of that
Reply
puravive
| #
Your posts always provide me with a new perspective and encourage me to look at things differently Thank you for broadening my horizons
Reply
alpilean
| #
Your posts always provide me with a new perspective and encourage me to look at things differently Thank you for broadening my horizons
Reply