Four ways to Measure Customer Experience

Four ways to Measure Customer Experience

In the age of advanced technology, consumers have a lot of choices. Dissatisfaction with a product is not a big deal for them, as they can find multiple replacements in minutes. That dissatisfaction, however, can cost a lot for your brand and your profits. 


Customer experience is more than just customer service. The entire interaction between the client and your brand, from finding and browsing your website to receiving a product or service from your brand, and everything in between, is referred to as the “customer experience.” Customer service is one part of CX that should have your attention, but there is more than that for your clients.


Improving the customer experience requires the use of tools that help you understand where your services are lacking and what you can do to improve them. With all of these measurement systems, you let the customer speak and use their opinions as the backbone of your improvement. There are multiple ways to measure the customer experience, each focusing on different key aspects of the experience. 


There are many different ways to measure CX, but generally, they all fit into one of these categories. 


1. Customer Satisfaction (CSAT), 

CSAT is the metric that customers will encounter the most with the brands they use. This category involves surveys, ratings, reviews, etc. Companies usually start their CX measurement here, since it’s the most widespread type of measurement. The results will typically show how your brand looks to your customers, how likely they are to recommend it to others, and how much they like your services on a scale that you decide.


Measuring customer satisfaction (CSAT) is pretty straightforward. Below, we have compiled a short step-by-step guide on how to do it properly:

  • Decide what you want to measure: First, you need to identify the specific product or service you want to measure customer satisfaction for. This will help you create targeted questions for the survey and get better, more specific answers. 
  • Create a survey: After you decide what you want to measure, you need to design a short survey that asks customers to rate their satisfaction with the product or service on a scale of 1-5 or 1-10. The questions should be as short and clear as possible in order to avoid confusion and make the process quicker for your customers.
  • Send the survey: Now it’s time to share this survey with your customers via email, include it on your website, or anywhere that feels natural for you. Make it easily accessible and make sure to include clear instructions on how to complete the survey.
  • Analyze the results: Calculate the average score of your survey responses to determine overall customer satisfaction. You can also segment the data by different factors, such as demographics or purchase behavior, to identify trends and patterns. This will help you more specifically pinpoint any areas in that need improvement.
  • Take action: Thanks to your hard work, now you have valuable insight into your customers’ experience with your business. Use these insights from the survey results to make improvements to the product or service, address customer concerns, and enhance the overall customer experience.


2.  Customer loyalty/retention 

This metric shows how likely your customers are to remain customers for a long time. This method works by calculating the customers’ actions in relation to your brand, such as purchases, subscriptions, repeat orders, etc. You can understand what part of your services causes customer churn or retention by analyzing how many of your customers remain loyal to your brand and how many of them leave after one purchase. This is a great way to understand which part of the customer experience causes customer churn and how to increase loyalty and retention by working on those parts. 

Below, we have listed five ways you can understand and analyze customer loyalty:


  • Customer Lifetime Value (CLV).

CLV is the total amount of money a customer spends on your products or services over the course of their relationship with your business. To calculate CLV, you’ll need to know the average purchase value, the average purchase frequency, and the average customer lifespan. Customer Lifetime Value offers valuable insight into your business and can guide your marketing and client retention strategies, hopefully leading to a rise in sales.


  • Customer Engagement Rate.

Customer engagement rate measures how often your customers engage with your business or content. It includes things like website visits, opened emails, social media engagement, and reviews. By tracking customer engagement, you can determine which marketing platforms are most successful in grabbing customers’ interest and change your strategy accordingly.


  • Repeat Purchase Rate.

The “repeat purchase rate” is the percentage of customers that purchase your products and services more than once. It’s a reliable sign of customer loyalty and can show you where your goods and services need improvement in order to draw in more repeat customers.


  • Upsell Ratio.

Simply put, the upsell ratio is the percentage of customers who upgrade or purchase additional products or services on top of their initial or original purchase. It’s a good measure of customer satisfaction and can help you identify opportunities to increase revenue by offering complementary or upgraded products.


  • Customer Churn.

The percentage of customers who stop doing business with your company is called Customer CHurn. Needless to say, it’s very important to monitor this measure because it can show you what problems with your product or customer service are driving customers away. By identifying why customers are leaving, you can take steps to reduce churn and increase customer loyalty.

Regularly monitoring these metrics will help you stay on top of your customers’ needs and build a loyal customer base.


3. Brand Advocacy

Similar to CSAT, measurement systems related to brand advocacy analyze how likely a customer is to recommend the brand and its services. This can be done through customer satisfaction surveys, event participation, trust ratings, etc. The willingness to endorse your product means that your client has trust in your brand and your abilities. If your clients seem uninterested in recommending your brand, then it will be useful to focus on understanding more about their needs in order to fix that problem.


Brand advocacy is usually measured through the Net Promoter Score. NPS is a measure of customer satisfaction and loyalty. It’s based on a single question: “How likely are you to recommend our product or service to a friend or colleague?” Customers respond on a scale from 0-10, and you can calculate your NPS by subtracting the percentage of detractors (0-6) from the percentage of promoters (9-10). NPS can help you identify areas where you need to improve your customer experience (CX) to increase word-of-mouth referrals.



4. Product Quality 

Some CX issues have nothing to do with the service that customers get, and everything to do with the quality of your product. In that case, being nice to your customers or offering new deals will not help your brand. Instead, you need to focus on how to improve the quality of your products and services while maintaining a good relationship with your clients. 


It is apparent that most of these measurement systems only focus on certain parts of the customer experience and not the whole process. In order to use these metrics to your advantage, you have to understand where you are lacking and what your clients want.


Knowing your weaknesses will ultimately help you become stronger. Using the right types of measurements or even a combination of them will help you grow, while the wrong methods for your company will prove to be only a waste of resources. 


Measuring your customer experience is crucial to improving your services. That process can be tricky, as there are many ways to do it, and not all of them will work for your business. You need a skilled team to help you find the best way to improve your CX. We can help!

Contact us for a free consultation on improving your customer experience.

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