Importance of Measuring Customer Experience
It is common for businesses to equate the quality of customer relationships with their overall success. However, far too often businesses are quick to invest in enhancing the customer experience they deliver without methods in place to quantify the impact of these changes on tangible metrics.
Without quantifiable metrics in place, enhanced customer experience may become nothing more than a matter of public opinion. We believe that the capability of measuring customer experience is essential to running effective CX programs designed to generate measurable impact and returns.
What Gets Measured Gets Managed
Measuring customer experience allows businesses to generate continuous improvements and link this to business KPIs. Peter Drucker, celebrated management consultant, was once quoted saying, “What gets measured gets managed.” Like with all other corporate initiatives, measuring the right aspects will ensure the program reaps the most advantageous efficiencies.
That said, demonstrating a clear relationship between customer experience and business outcomes can prove to be an intricate task. A 2017 study conducted by Capgemini found a direct and clear correlation between CX and increased sales. The study found that 81% of consumers were willing to pay more for a better experience. However, in order to measure this correlation effectively, a business must carefully identify and evaluate their initiatives, creating a map to success.
CX Maturity is Dependent on Measurable Metrics
The 2018 Forrestor Customer Experience Index for US Brands revealed how ineffective legacy models have been in addressing the expectations of their target audience. Additional data suggests that these trends are not limited to US businesses. Organizations seeking improved customer experience must clarify the value of the initiatives they put in place to achieve their objectives.
Start by comparing customer feedback over an extended timeframe, both unstructured and in response to surveys. Be sure this analysis is linked to each demographic your business seeks to attract and retain. By conducting a targeted cost-benefit analysis based on specific categories and parameters, an enterprise can create data that can be mapped to enhance future strategies and actions.
Customer experience programs must also be flexible enough to respond to future outcomes. By identifying distinct data points, and relating them to specific initiatives, businesses gain the ability to monitor their CX programs for optimal performance.
Measurable Metrics Necessary for an Enhanced Customer Experience
In order to accurately measure your CX initiatives and the value they generate, your CX strategies must include a variety of metrics that impact the success of customer experience. Not only will these measurements help you understand what’s working within your current CX strategy, but it also shows you what areas need improvement. The best place to start is by seeking customer feedback. After all, your consumers know exactly what they want and expect from the customer experience.
Customer feedback can be measured in different ways, here are a few metrics which can be used:
- Net Promoter Score (NPS): Ranging from -100 to 100, NPS provides a measurement of how many consumers would recommend your products and services to their friends and family. A direct link to the success of specific CX initiatives, NPS also serves as a proxy for gauging brand loyalty.
- Customer Satisfaction (CSAT): CSAT provides a measurement that determines how satisfied customers are with a business’s products, services, and capabilities. Leveraging the findings of surveys and ratings, CSAT can help a company determine how to improve or change its products and services. Best of all, metrics like CSAT and NPS allow companies to identify variations over an extended period of time.
- Customer Effort Score (CES): Now more than ever, customers prioritize convenience above many of their needs. CES is a single-item metric that measures how much effort a customer has to exert with a company, to include resolving a problem, fulfilling a request, processing a return, or answering a query. It correlates with business outcomes and is easy to track over time. In fact, studies commissioned by Gartner found CES more directly correlates to future loyalty than NPS.
- Visitor Intent and Task Completion: Most often related to digital engagement, these metrics can be incorporated into the customer’s online experience. Through short and simple queries, an enterprise can determine the reason for the visit and whether or not customer concerns have been properly addressed.
Customer Experience and Strategic Effectiveness
In addition to measurable metrics, all CX initiatives should be subjected to critical analysis in terms of strategic effectiveness. The most effective approaches include:
- Identifying changes in customer responses before and after specific initiatives. Metrics should be measured continually and well beyond their initial deployment so their specific ability can be quantifiably mapped onto any/all process changes.
- Identifying disruptive innovation that may generate competitive advantages. Big picture analysis is crucial in generating maximum value for your enterprise. Innovations should be continually tested for statistical variation against industry standards.
- Calculating value against initial cost and time to CX maturity. In relative terms, gaining a competitive ground alone can be inadequate when it is not measured against the time it takes to experience tangible benefits. Continuing costs and maturation often helps to identify the best returns on investment, which helps to prioritize CX initiatives.
Kanari for Measuring Customer Experience
For a CX program to be truly optimized, a business requires a thoughtful and effective strategy to collect, measure and analyze data. When accurately measured, CX data can be used to ensure the best return on investment, as well as sustained success.
At Kanari, we are all about helping you with measuring customer experience. Our innovative customer experience management solutions provide a reliable, flexible, and scalable platform to help your company create better customer relationships. Contact a member of our team to schedule your customer experience management consultation.