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measure customer experience

How to measure Customer Experience

You have decided to outsource the CX but want to ensure it provides the necessary success and results. How to measure customer experience is a complex matter primarily because experiences include multiple touchpoints across multiple channels and different specific goals. So, how can you know what works and what doesn’t? We have prepared a series of guides to help you learn how to measure customer experience and which are the most important key performance indicators (KPIs) to understand and track.

Every work done gets measured. And when measured properly, it’s done even better.

Customer experience starts with customer satisfaction. And when customers are satisfied, they are willing to provide feedback. Customer feedback is measurable and one of the most important indicators to know if your company meets your customer’s expectations.

measure customer experience

Start by measuring your customer journey.

Customer journey is every single step your customers take or make when interacting with your products or service. So, to measure the success of the customer service, you need to measure the customer journey. 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. Therefore, you’ll be able to measure the journey as a whole, measure the stages of the journey, or measure all individual touchpoints of the entire customer journey.

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 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.

Measuring customer journey phases means measuring each stage your customers will go into when becoming part of your journey. The most common customer journey phases (for both SaaS and B2B) are Awareness / Evaluation, Consideration / Onboarding, Purchase / Adoption, Retention / Renewal, and Advocacy. You can measure each stage individually with different sets of questions to be addressed and different sets of measures. Here are some examples for each phase:

1. Awareness or Evaluation: Are your customers familiar (aware) with your brand, products/services, and features?

  • Share of Voice (SOV) in the market: measures your brand’s market share compared to your competitors. SOV measures your brand’s visibility and how much you control the conversation within your industry.
  • Website visits/website users: measures the number of visits or users created on your website over time.

2. Consideration or Onboarding: Are customers looking for your brand when they know they want to buy the type of product/service you offer?

  • 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.

3. Purchase or Adoption: Are customers completing their purchases once they begin the purchasing process?

  • Abandoned cart rate: determinates 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 sell.

4. Retention or Renewal: Do your customers return to your brand for a second purchase after making the first purchase?

  • Customer Lifetime Value (CLV): determinates ​​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 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 services.
  • Customer service ticket volume,
  • The number of return visitors: measures the number of customers that will return to your brand for a possible second or third purchase after their initial one or after they have visited your store within a determined time frame.

5. Loyalty or Advocacy: How likely will customers recommend your brand after shopping with you?

  • 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),
  • sentiment via social listening,

And finally, measuring specific touchpoints means defining all possible touchpoints (how customers act with your brand) and setting particular measures to see how each touchpoint performs. Here are some examples:

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 period of time. This shows precisely how many of your customers need help.
  • First contact resolution: measures how many of your customers resolved their problem 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 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
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Example #2: Physical touchpoint metrics (in 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

Measuring your customer experience 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. You’ll know if you meet your customer’s expectations, how easy to use your services or products, and if your customers will refer you to other users. But also, you’ll be able to know how your CX team is performing, whether it’s providing the expected solutions and help and whether your customers are satisfied with them and your company overall. In the next guide, we’ll help you how to calculate the most important metrics so you can have visible results.