As customer experience (CX) becomes ever more relevant in this current digital age, ensuring that your business provides quality CX is more essential than ever. To transform someone into a customer, good products or services are no longer enough. Long gone are the days when a good product could guarantee a following with just that. Now, the complete experience is the defining factor to ensure customers.
Customer Experience 101
CX is one of the foundations of business success. After all, it refers to the complete perception customers have of your experience. These perceptions are what customers base their decisions on. In fact, 1 in 3 customers will leave a brand they love after just one bad experience, while 92% would completely abandon a company after two or three negative interactions. Constantly providing quality experiences has never been more important than now.
How to Measure CX
Measuring the success of CX can be challenging since it involves various factors that are strongly linked to customer perception and satisfaction. As a response to this, different metrics and methods were developed so that businesses can measure the success of CX.
CX METRIC #1: Net Promoter Score (NPS)
NPS is a widely used metric to measure customer loyalty and satisfaction. It asks customers how likely they are to recommend the business to others on a scale of 0-10. Customers who give a score of 9 or 10 are considered “promoters”, between 7 and 8 are passive customers, while those who score 6 or below are “detractors”. To calculate the NPS, you need to subtract the percentage of detractors from the percentage of promoters, giving a score between -100 and +100.
CX METRIC #2: Customer Satisfaction (CSAT)
CSAT is a metric that measure how satisfied customers are with a particular interaction or experience. It is measured by asking customers to rate their experience on a scale of 1-5 or 1-10. Businesses can also use open-ended questions to gather more detailed feedback from customers.
CX METRIC #3: Customer Effort Score (CES)
CES measures how easy or difficult it was for customers to complete a specific task or interaction with the business. It can be measured by asking customers how much effort they had to put into resolving an issue or completing a task on a scale of 1-5 or 1-7.
CX METRIC #4: Repeat Business
The frequency in which business occurs can serve as an effective indicator of customer satisfaction and loyalty. Monitoring the percentage of customers who return to the business for additional purchases or services provides insight into the overall success of CX.
CX METRIC #5: Customer Lifetime Value (CLV)
CLV measures the total value a customer brings to the business over their lifetime. It takes into consideration factors such as purchase history, frequency of purchases, and customer loyalty. A higher CLV indicates that customers are more satisfied and loyal, which is a positive reflection of CX.
CX METRIC #6: Social Media Metrics
Keeping a close eye on social media mentions, reviews, and sentiment can give details into customer perception of the business and its CX. Through positive reviews and mentions, it becomes evident that customers are satisfied. On the other hand, negative reviews can highlight areas for improvement.
STRATEGIES TO IMPROVE CX
By regularly tracking and analyzing these metrics and methods, businesses can continuously improve their CX and measure the success of their efforts.
HORATIO’S TIP #1: Analyze Metrics
Once you have relevant metrics under your belt, the next step is to analyze them rigorously.
HORATIO’S TIP #2: Gather Data
Surveys, focus groups, and even customer interviews can be a great way to gather specific insights into your CX.
Elevating Your Customer Experience with Horatio
Customer perception is everything in this modern world. This means that CX is of utmost importance to ensure customer satisfaction and retention.
At Hire Horatio, we are committed to building a personalized, world-class customer experience to level up your company, helping you achieve the best possible outcomes as a company.
Allow your customers to fall in love with your business again and again. Contact us to start now.