Understanding how customers view your business can help you to maintain a competitive edge. This competitive edge is what translates into an increased income and a huge customer base.

How do you know how customers view your business? It is simple. Measure their experience.

Don’t worry. We’ll show you how.

In this blog, we share customer experience metrics you can use to measure how your customers see you. We also share tips from experts who have measured customer experience.

Sounds like what you’re looking for? 

Grab a seat. Let’s get started. 

What is customer experience (CX)? 

CX is the impression your brand or product leaves on your customers. In other words, it is the perception they build after interacting with your brand. 

Your product and people are two essential elements impacting customer experience. 

Remember the time you were blown away by the response you received from the customer rep? And that time, you were so happy the product lasted longer than you estimated it would?

All these are examples of positive customer experience.

What are the key KPIs for measuring customer experience?

Before you start measuring, setting out some customer experience KPIs (key performance indicators) is a good idea. KPIs help you measure your progress towards a business goal. 

Here are some you should consider:

• Customer churn rate: This KPI measures customers’ rate of unsubscribing. Low churn rates mean customers are satisfied with your brand.
• Average resolution time: This KPI refers to the time required to resolve a customer’s issue. Faster resolution times mean happier customers.
• Conversion rate: Increased conversion rates mean customers are moving along the buyer journey. It also means their customer experience is positive.
• Cart abandonment rate: This KPI reveals issues in the design of the customer funnel. Your customer may have questions. Embed a messaging platform. Your customers will be able to resolve queries without leaving their carts.
• Pages per visit: This KPI for customer experience measures the time a customer spends on your website. The higher this value is, the more useful they find the website.
• Marketing campaign effectiveness: In other words, the return on investment any marketing campaign gives you. The more effective your campaign is at reflecting the voice of your customers, the better the customer experience is.
• Customer lifetime value: This KPI for customer experience measures the likelihood a customer will continue purchasing from you. If the CLV lowers, organisations can identify ways to retain the customer’s business.

How to measure CX? 3 ways, according to the experts 

It’s not rocket science! You only need data analysis and decision-making to measure CX. Here are a few ways suggested by experts that can help you get the customer experience right.

Involve the organisation

Chris Woodward, Co-founder at Handle, says:

“CX is not just a marketing, sales or CS effort. It’s an overall experience that factors in the efforts of all your departments. Everyone in your organisation should be concerned about CX.” 

Involving the whole organisation doesn’t mean assigning them direct roles to solve customer queries. 

The idea here is implicit knowledge. Knowing a part of each employee’s job contributes to the customer experience.

You can do this from day one. Start by adding customer experience as a core value. Train new hires in customer service. Ensure they learn how it impacts the overall company image. 

Woodward suggests building instruments for soliciting feedback about every aspect of your service/business. Especially the significant touchpoints in the customer journey. 

You can also review customer experience guidelines with your team once every quarter. 

Ideal performance vs actual performance

Chris Woodward suggests looping back to your CX vision when measuring CX delivery.

“This will help you see the gaps in implementing your CX enhancement strategies. And identify weak points in the journey.”

For this, you start with a customer experience vision. Build it into your core values. Define it so every department in your organisation can understand it. No matter what kind of organisation you are, your departments contribute to your customer’s journey. 

As you roll out your services, you can set KPIs and compare them to your vision. 

Automation

“By automating surveys and gathering customer feedback at each touchpoint, you can better understand and analyse the customer journey.”

This lets you improve your products and services continually,” says Kate Williams, Product Marketing Manager at Survey Sparrow.

This method focuses on creating an efficient process of collecting feedback. The faster you collect information, the quicker you can enhance customer experience.

Shortlist the touchpoints you want to survey in your business.

For example, ask website visitors about their browsing experience. Embed a survey on your website that pops up after your customer spends a specific time on your website. 

Automated surveys also give you a clear picture of your customer journey. Add an element of conversation to your surveys. This will keep your customers from feeling bored when responding to them. 

Check out the automation tools you need to delight your customers.

FAQs

What 3 metrics best measure customer success?

Customer Satisfaction (CSAT), Net Promoter Score (NPS), and Customer Retention Rate are the three most commonly used customer experience metrics.

What is the KPI for customer value?

Customer Lifetime Value (CLV) is a KPI for measuring customer value. It quantifies the total value a customer brings to a business over their entire relationship. 

Which tool is used to measure customer experience?

Customer experience Net Promoter Score (NPS) is commonly used to measure customer experience.

Why is customer experience measurement important?

It is crucial because it helps businesses understand and improve customer interactions. This understanding leads to enhanced satisfaction and better decision-making, driving growth.

What is a customer experience matrix?

A customer experience matrix is a visual framework. It maps various aspects of customer interactions and perceptions. The matrix helps businesses identify which customers are most valuable. And how to improve their experience.

What are the procedures for measuring customer satisfaction?

Customer satisfaction measures include surveys, feedback forms, interviews, focus groups, and online reviews.

What does KPI mean?

KPI stands for Key Performance Indicator.

What is the customer success formula?

Customer Success = Customer Outcomes + Customer Experience.

What is LTV in customer success?

LTV stands for Customer Lifetime Value. It measures the total value a customer forms for a business over the entire duration of their relationship.