Customer Experience

This guide explains how to measure Customer Satisfaction and Customer Loyalty using KPIs such as NPS, CSAT, and CES.

Knowing how to measure customer satisfaction and loyalty metrics is the most critical factor in making your customers happy and keeping them coming back.

The good news is that measuring these is pretty straightforward. There are three key metrics you should know about: NPS, CSAT, and CES.

NPS tracks your customers’ loyalty over time. CSAT helps you understand how satisfied customers are after those special moments in their journey with you, and CES lets you know how easy it is for customers to get the answers they need.

With data gathered from all three metrics, you’ll have a complete picture of how you’re serving your customers ‒ and where there is room for improvement.

Jump to:
What is Net Promoter Score (NPS)
Why use NPS?
How to measure and calculate NPS
What is Customer Satisfaction Score (CSAT)
Why use CSAT?
How to measure and calculate CSAT?
What is Customer Effort Score (CES)?
Why use CES?
How to measure and calculate CES?
Key Takeaways

What is Net Promoter Score (NPS)

One way to measure customer satisfaction and loyalty is by calculating the Net Promoter Score. NPS measures the likelihood of your customers recommending your product or service to their friends. It is the most widely used CX metric, with nearly two-thirds of businesses using it. Why is it so popular?

NPS is a powerful metric for measuring customer loyalty with just two questions. It is short and simple for companies to implement and track and for customers to answer. The first question is some variation of: How likely are you to recommend [product or service] to others? And the second question is: What is the reason for the score?

Why use NPS?

• It’s quick, simple, and easy for both companies and customers
  
• It calculates how loyal your customers are likely to be
  
• It shows the big picture
  
• It’s an industry-standard metric: it is widely and well understood, and there are available benchmarks
  
• An increase or decrease in NPS helps forecast future revenue gains or losses
  
• It’s also used to evaluate word-of-mouth marketing campaigns

How to calculate NPS

Calculating NPS is quite simple:

• Send an email or a store survey with only two questions
• Have a scale from 1 to 10 for the customers to rate
• Sort the respondents into three groups: Detractors, Neutrals/Passives, and Promoters
• Those who answered 1–6 are Detractors, 7–8 are Neutrals/Passives
• Sort the respondents into three groups: Detractors, Neutrals/Passives, and those who answered 9-10 are Promoters.

Subtract the total number of detractors from the total number of promoters.
The formula is: NPS = % Promoters – % Detractors
If the results show that 70% of your customers are promoters and 10% are detractors, your NPS score will be 60%.

What is Customer Satisfaction Score (CSAT)

Customer Satisfaction score (CSAT), along with NPS, is one of the most commonly used CX metrics. It comes in various shapes and sizes, but the most common is using a 1 to 5 scale. An excellent example of CSAT is Google or Facebook ratings. CSAT is a perfect tool for determining whether a customer is satisfied with a one-time interaction. CSAT is also easily adaptable to any specific needs of an organization.

Why use Customer Satisfaction score (CSAT)?

• CSAT is simple and efficient to implement
• Customers’ responses are typically straightforward and quick
• It’s targeted, and responses help determine which aspects of the product/service customers are most satisfied with or dissatisfied with
• It can be tailored to any specific area or need
• It is frequently requested of a customer following a transaction or support ticket to assess the efficiency of the customer service department
• Customer satisfaction score is an excellent way to learn what customers think of a brand at the moment

How to measure and calculate CSAT?

• Send a short survey immediately after customers’ interaction with your brand or their interaction with a specific area of your service or product
  
• Usually, the survey contains only one question: “How satisfied were you with your experience/our product/service today?”
  
• Provide a scaling system (on a scale of 1-5 or 1-10) from very satisfied to very dissatisfied

Calculating the Customer satisfaction score (CSAT) can be done differently, depending on what works best for the business.

• Use Happy-Neutral-Unhappy Ratings
• Use 5-star ratings
• Use one of the Two different formulas:

With these formulas, you can:

• Take an average of all the results. In this case, the CSAT formula is to add all scores and divide the total by the number of respondents. Then, multiply the result by 10 to get the Customer satisfaction (CSAT) score %.
• To calculate an average customer satisfaction score, take the number of “Very Satisfied/Satisfied” responses, divide by the total number of respondents, and multiply by 100.

Here are examples for both:

• Your CSAT survey had 20 respondents. If the total of their scores is 100, you have a 50% CSAT score.
  
• If you had 20 respondents and ten said “Very Satisfied/Satisfied,” the CSAT score would be 50%. (0,5 times 100).

What is Customer Effort Score (CES)

CES analyzes the amount of time and number of steps taken before the customer reaches an answer or solution. Lower effort means a higher level of client satisfaction with the service. It is the third most popular customer experience metric that involves the customer’s input.

The more accessible (and more effortless) you make the customer experience, the more likely your customers will buy from you again.

According to research, 94% of customers who had an easy experience are more likely to buy again. Also, 81% of the customers who felt like buying was too much effort are more likely to share their negative experiences, compared to 1% of those who had an easy time.

The CES is typically calculated by asking customers, “How easy was it to solve your problem today?” on a scale of 1 to 5 or 1 to 7.

Why use CES?

• CES is simple and efficient to implement
• It assists you in analyzing the product/service’s complexity
• It evaluates the ability to improve usability. Furthermore, reducing effort may increase customer loyalty. As a result, CES may be the best metric for predicting loyalty

How to measure and calculate CES?

• Send the survey immediately after the customer interaction. Ask your customers to rate the interaction from low to high in the survey. To calculate the score, see the average and distribution of scores.
• The formula is: CES = Sum of all customer efforts score / Total number of responses.

Key Takeaways

We’ve covered the three most popular metrics on how to measure customer satisfaction and loyalty: Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Effort Score (CES). These metrics will provide you with important insights on how to enhance various elements of your business and will give you a sense of how easy your customers find it to use your product or service. This can result in satisfied consumers who stick around longer and spread positive word-of-mouth marketing. 

If you have difficulty identifying, tracking, and measuring Customer Experience metrics, you can always reach out to us. FrontLogix provides strategies for improving your overall customer experience and improving the NPS, CSAT, and CES scores.

Get a quote now.

Related: How to measure Customer Journey
Related: How to measure Customer Lifetime Value (CLV), Customer Retention Rate (CRR), & Customer Churn Rate (CCR)

This is a super-comprehensive guide on how to measure the Customer Journey as a whole, by phases, and by specific touchpoints.

By measuring the Customer Journey, you can get actionable insights into your customers’ motives, emotions, and behavior. This can reveal areas where customers may be dropping off or facing friction, allowing you to then use that knowledge and improve your Customer Experience.

The Customer Journey can be analyzed in a variety of ways, including measuring the entire journey as a whole or breaking it down into individual stages and touchpoints. Knowing how to measure Customer Journey ensures that you can identify pain points and optimize each interaction for better results.

Jump to:
What is the difference between Customer Journey and Customer Experience?
Why measure Customer Journey?
What is a Customer Journey Map?
How to measure the Customer Journey as a whole
How to measure Customer Journey by phases
1st phase: Awareness or Evaluation
2nd phase: Consideration or Onboarding
3rd phase: Purchase or Adoption
4th phase: Retention or Renewal
5th phase: Loyalty or Advocacy
How to measure Customer Journey specific touchpoints
Drawing a conclusion

What is the difference between Customer Journey and Customer Experience?

The Customer Journey is the process a customer goes through when engaging with a brand to purchase its product or service. It covers the specific progression of the customer across every touchpoint, starting from when they first discover the brand (awareness stage), to the final purchase and turning into a brand advocate.

Consumer Experience, on the other hand, refers to a customer’s overall impression of a brand based on interactions throughout the customer journey, including aspects such as product quality, customer service, and any other factors that influence their opinion.

Understanding how to measure Customer Journey plays a great part in the overall Customer Experience. CX is, however, more holistic and includes a wider range of factors than just the Customer Journey.

What gets measured, gets done.

Why measure Customer Journey?

How to measure Customer Journey will help you understand how you are seen by your customers. Key Performance Indicators (KPIs) are a great way to track and measure CX, but understanding WHICH ones to measure, WHEN measurements should be taken, and HOW to interpret the results can be tricky.

How to measure Customer Journey – start with a plan. You could measure the journey as a whole, measure the stages of the journey, or measure individual touchpoints. 

But first, it would be helpful to have a Customer Journey map. This map will identify all the journey phases and touchpoints for a more straightforward measurement. Learning how to measure Customer Journey effectively ensures that each phase of the journey is optimized for better customer satisfaction and business outcomes.

What is a Customer Journey Map?

A Customer Journey Map is a visual storyline of the Customer Journey. It depicts the individual touchpoints and steps a customer goes through while engaging with a brand ‒ from customers’ initial awareness of the product or service to post-purchase review. 

Its purpose is to help businesses better understand the customer experience, identify pain points and areas for improvement, and align business goals with customer requirements and expectations. A well-designed map also serves as a foundation for determining how to measure Customer Journey at each stage or touchpoint.

How to measure the Customer Journey as a whole

Measuring the customer journey means measuring customer success during all phases and via all journey touchpoints. The essential metrics for overall success are:

• Net Promoter Score (NPS): Measures customer loyalty and advocacy, or how many of your customers are likely to recommend your products/services to a friend. This is usually done on a scale of 1 to 10. It can help you understand how the overall experience works in the journey, including customer sentiment towards products, pricing, onboarding, retail experience, marketing, touchpoints, brand, and customer service.
• Customer Satisfaction (CSAT): Determines how satisfied your customers are with your products/services and the customer experience you provide. This measures how happy or unhappy they are with an overall product/service or specific features (for example, returning a product).
• Customer Effort Score (CES): Measures the effort customers require to achieve what they want, including placing an order, getting a question answered, resolving an issue, or returning a product. Usually, the higher the customer effort, the lower the customer loyalty.

How to measure Customer Journey by phases

How to measure Customer Journey – Measuring customer journey phases means measuring each stage your customers will go into when becoming part of your journey. Understanding how to measure Customer Journey by phases helps businesses identify specific pain points and opportunities for improvement at every step.

There are 5 most common how to measure customer journey – journey phases (for both SaaS and B2B).

1st phase: Awareness/Evaluation
2nd phase: Consideration/Onboarding
3rd phase: Purchase/Adoption
4th phase: Retention/Renewal
5th phase: Loyalty/Advocacy

2nd phase: Consideration or Onboarding

Are customers looking for your brand when they want to buy the type of product/service you offer? Learning how to measure Customer Journey during the consideration phase ensures you can track customer interest and engagement effectively

The essential metrics to measure in this phase are:

• Organic keyword traffic: Measures the volume of a keyword used in search engines to attract free website traffic over time.
• Direct website traffic: Measures the volume of visitors that arrive at your website directly, without first clicking on a link on another website.
• Monthly Active Users (MAU): Measures how many users actively engage with your product or service over a specific time. In this case, the number of active users in a month.
• Store visits (if physical store available): Provides the number of people who have visited your physical store over time.

3rd phase: Purchase or Adoption

Are customers completing their purchases once they begin the purchasing process? Understanding how to measure Customer Journey during this phase is essential for optimizing conversions and reducing drop-offs.

The essential metrics to measure in this phase are:

• Abandoned cart rate: Determines the total number of completed purchases divided by the number of carts created.
• Store visits vs. Purchases (if physical store available): Measures how many people have visited your store and purchased a product/service you are selling.

4th phase: Retention or Renewal

Do your customers return to your brand for a second purchase after the initial one?

The essential metrics to measure in this phase are:

• Customer Lifetime Value (CLV): Determines ​​the total value of a customer to a company throughout their relationship.
• Customer Retention Rate: ​​Measures the number of customers who return to your business or continue to pay for your product/services after a certain period.
• Customer Churn Rate: Measures how many customers have left your company over time or are no longer paying for your product/services.
• Customer service ticket volume: Measures the number of tickets customers submit over a period of time.
• The number of return visitors: Measures the number of customers that return for a possible second or third purchase after their initial one or after they have visited your store within a determined time frame.

5th phase: Loyalty or Advocacy

How likely is it for your customers to recommend your brand after shopping with you?

The essential metrics to measure in this phase are:

• Customer Referral Rate: Measures how many people refer and recommend your brand to their friends or colleagues. It is the ratio between referred purchases and total purchases.
• Net Promoter Score (NPS): Measures the likelihood of your customers recommending your product/service to others.
• Sentiment via social listening: Measures what is being said about your brand on social networks and if it is negative, positive, or neutral.

Example #1: Digital touchpoint metrics (in case of an online store or web-based service placement):

• Chat/call/ticket volume: Measures the number of chats, calls, or tickets received over a certain time period. This shows precisely how many of your customers need help.
• First contact resolution: Measures how many of your customers resolved their problems in a single interaction.
• Average resolution time: Measures how long it takes to resolve a customer’s problem, on average.
• Average response time: Measures how long it takes for the customer experience rep (CXR) to respond to a customer query.
• The number of tickets reopened: Measures the number of tickets reopened over a specific period because the customer was dissatisfied with the initial support and must return for the correct solution.
• Average handle time (AHT): measures the total amount of time spent in conversation with each customer by each contact center agent – including hold time and time spent completing forms or other tasks as a result of the conversation – and the length of the conversation itself.
• Customer satisfaction survey: Determines how satisfied your customers are with your customer support, services, or products.
• Frequency of up-sells & cross-sells: The number and frequency of up-sells/cross-sells made.

Example #2: Physical touchpoint metrics (in the case of a retail store):

• Store visits vs. number of purchases
• Total order value/cart size
• Overall sales in retail
• The number of queries for the staff
• Overall cross-sell & up-sell

Drawing a conclusion

How to measure customer journey is more than necessary. It’s crucial. There are so many factors to consider and so many metrics to follow. Those metrics will tell you different aspects of your customer’s journey with your brand.

If you have difficulty identifying, tracking, and measuring all those metrics, you can always reach out to us. FrontLogix provides strategies for improving your overall Customer Experience and KPIs.

Contact us today.

Related: How to measure Customer Satisfaction and Customer Loyalty

Related: How to measure Customer Lifetime Value (CLV), Customer Retention Rate (CRR), & Customer Churn Rate (CCR)