Want to understand your customers better? Measuring your customer experience metrics will help you look into how your customers enjoy your products or services and, in effect, how likely they will continue supporting your business and refer you to their friends and family.
What is Customer Experience and Why Should You Measure It?
Customer experience is the impact your business has on your customers. This could be through their experience with your products or the services you offer before, during, and after your sale. Basically, any and all interactions the customer has with the business is considered in their customer experience. The impression you make with the customer, results in how they perceive your brand and how likely they will continue to do business with you in the future.
According to one study done by Dimension Data, 81.6% of businesses believe that customer experience gives them a competitive edge, with 58% claiming it is their primary differentiator. Utilizing customers’ feedback, businesses can take remedial and proactive strategies that can create a great and consistent customer experience that ultimately leads to happier clients, increased customer loyalty, increased revenue, and even improved employee experience.
4 Ways to Measure Customer Experience
1. Talk to your customers
When was the last time you got to know your customers? One of the most straightforward ways to understand your customers’ experience with your business is to talk to them, and one of the most efficient ways to reach out to them is through surveys.
These surveys can help you learn about your customer health score which can help you understand their relationship with your business. Feedback forms sent to your customers in various stages of their customer journey can also help you analyze any key points of their journey you can highlight and where you can improve.
Creating a map of your customer journey will visually represent the process your customer goes through to achieve a goal with your company. This could be from finding your ad online, to purchasing your product, to any after-sales services you might offer. With the map, you get to understand all the touchpoints a customer experiences throughout their journey. You should also be able to answer questions about customer motivations, needs, and pain points with the help of the map.
2. Study Your Analytics
You can utilize the data you already have to measure customer experience. Going back to your customer journey map, go and visit all the possible touchpoints that you have gathered data to utilize in your metrics. Throughout that customer journey, you may have already gathered data beyond your customer segmentation.
Your business’s social media, ads, and website are probably the easiest sources of analytic data. You also have a plethora of data to access from your product reviews, onboarding, company events, customer loyalty programs, and email newsletters.
Find out if any needs are left unmet. How do they feel during a specific moment in their customer journey? Figure out where your customers are experiencing the most friction, if there is anything about your product in particular that you can improve on, or if there are better ways to support your customers and provide a better customer experience.
3. Calculate your Net Promoter Score
The Net Promoter Score (NPS) is one of the main metrics used to calculate customer experience. This is your customers’ satisfaction benchmark that shows you how likely your customers are to recommend your business to a friend, a colleague, or family members.
Your customers will rate how likely they are to recommend you to a friend on a scale of 0 to 10. Customers who rate 0 to 6 are called “detractors,” those who score 7 to 8 are “passives,” while those who score 9 to 10 are called “promoters.”
Your NPS is the percentage of customers that love, are neutral, or aren’t a fan of your brand. You can calculate this by subtracting the percentage of detractor responses from promoter responses. You can then immediately see how many customers are satisfied with their customer experience that they have become promoters and ambassadors of your brand,
4. Measure How Many of Your Customers Stay
There are two ways to measure how many of your customers stay loyal to your business. You have the Customer Retention Rate (CRR) and the Customer Churn Rate (CCR), and both are highly connected.
Your Customer Retention Rate measures how many customers stay with your business over a period of time. You can also recognize when customers are likely to stop doing business with your company.
To measure your CRR, the equation is really easy: % of loyal customers in period one / % of loyal customers in period two = retention rate
The Customer Churn Rate on the other hand shows how many customers leave over that same period. Churn is inevitable but it is still important to study and implement strategies to reduce it as much as possible.
The CCR is the reverse of the retention rate where you compute % of lost customers in period one / % of lost customers in period two = churn rate
You must invest time and resources into measuring your customer experience metrics. The valuable data you get from doing so can help you become more customer-centered, providing them with the best products and services that can ultimately sustain your company for longer.
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