Without a doubt, the importance of Customer Experience (CX) for any business growth shouldn’t be underestimated. CX is how customers perceive and feel about your business and brand. In fact, companies that worked on improving customer experience saw a 92% increase in customer satisfaction, 84% uplift in revenue, and a 79% cost savings. In recent years, a number of strategies and tools have been developed to measure and analyze customer habits and preferences. Yet, the most valuable information you can get comes directly from your customers themselves. It’s called customer experience metrics

According to Forrester’s CX Index, 72% of companies admit that working on improving customer experience is a must. However, only 1% of organizations manage to provide a superior experience. Measuring and carefully benchmarking customer satisfaction metrics is already a big step for businesses to start enhancing their customer experience. 

But how to measure customer experience? And which metrics are worth considering for your business? In this blog post, we’ll explain to you how to start measuring customer experience, and how to apply those metrics so that to improve your business overall performance.

What are cx metrics?

Simply put, cx metrics help your organization to measure how happy your customers are so that you can actively work towards increasing competitive advantage, expanding revenue, and boosting customer loyalty and retention. 

Even if customers are unhappy with your product, they choose to say nothing. Those are customers you are likely to lose if you don't take necessary measures. That’s why tracking customer satisfaction metrics is crucial. These measurement tools can help you collect valuable feedback, analyze it, and based on the received insights make improvements. 

What Metrics Measure Customer Satisfaction?

NPS, CSAT, and CES are the most commonly used customer satisfaction metrics. We’ll introduce you to each metric and show how they can help improve your business performance. 

Net Promoter Score (NPS)

The Net Promoter Score measures the willingness of customers to recommend a company’s products to others. It is used to identify the loyalty of customers to a company. We usually measure NPS with a single question survey:  

"On a scale from 0 to 10, how are you likely to recommend company/brand/product X to a friend/colleague/relative?"

net promoter score scale

Accordingly, 0 is not at all likely, and 10 extremely likely. Depending on the response, customers fall into one of three categories to establish an NPS score:

net promoter score: customers categories

Consider implementing NPS metric into your customer experience strategy, as it can be used with industry NPS benchmarks to see how your product is doing compared to your competitors. 

The formula to calculate the NPS metric is simple. You just have to subtract the percentage of customers who answer the question with a 6 or lower from the percentage of customers who answer with a 9 or 10. 

NPS = % Promoters - % Detractors

If you apply the NPS feedback correctly, you can adjust your business to meet what customers want without over-delivering in one area or under-delivering in another. 

We also recommend asking follow-up questions as a part of the survey:

  • What’s the reason for your score?
  • What can we do to improve our product and bring more value to you?

Customer satisfaction is the key to acquire new customers and keep old ones. In addition to that, remember that NPS is just a part of a bigger picture. Don’t view it as a standalone metric that determines your whole customer experience. Combine NPS with other metrics. Customer Satisfaction Score (CSAT) and Customer Effort Score (CES) will be a good company. 

Focus on value and quality rather than numbers. It means that you should aim at improving the score rather than just increasing the figure. Take what you have learned from your insights and apply results to grow promoters, and convert passives and detractors into promoters.

Summing up, the goal of the Net Promoter Score is to help you analyze and support the relationship you've created with your audience. To make it effective, you should always listen to the voice of your customers and act on it. Instead of trying to improve the numbers, focus on understanding what drives the score, and improve it to create and sustain long-term customer success.

Customer Satisfaction Score (CSAT)

CSAT is a commonly-used key performance indicator. We usually apply this metric to track how satisfied customers are with your product.

CSAT surveys are usually sent when you want to see how happy customers are with a certain aspect of your product. For example, you’ve added a new feature and want to see how efficient and useful it is to the end-users and if any improvements are necessary.

customer satisfaction score scale

Here’s an example of common CSAT questions:

"How are you satisfied with our product?" or “How would you rate your overall satisfaction?” with the company, its product, or a certain interaction. 

A five-point scale is used, with options very unsatisfied, unsatisfied, neutral, satisfied, and very satisfied. Companies can calculate CSAT by using an average of 1-5 or by focusing on the 4-5 responses.

(#) positive responses / (#) total responses X 100 = (%) CSAT

To calculate the Customer Satisfaction Score, divide the number of “satisfied” or “very satisfied” respondents by the total number of respondents, and multiply it by 100. This results in your CSAT percent.

Customer Effort Score (CES)

With the CES, we ask customers to score the amount of effort involved with a specific interaction. Using CES surveys, you can ask the question,

on a scale of ‘extremely easy’ to ‘extremely difficult’, how easy was it to interact with [product].” 

customer effort score scale

The idea is that customers are more loyal to a product that is easier to use. Customer churn is one of the main business drivers and customer effort is a great indicator of loyalty. CES impacts your business outcomes and is easy to track over time. 

To calculate the Customer Effort Score, determine the percentage of positive (very easy and easy) and negative (very difficult and difficult) responses to your CES survey. You can then subtract the number of negative responses from the positive responses.

CES = % Easy - % Difficult

If you get a high average, it shows that your company is making the experience convenient for customers. A low average indicates that there’s still work to be done to make the customer experience easier and engaging. However, the drawback of CES is that it is more focused on evaluating a particular process of customer interaction, so it doesn’t give a broader understanding of the entire customer experience. For this reason, we apply CES together with Net Promoter Score and Customer Satisfaction Score to get a better understanding of customer satisfaction.

In Conclusion

We believe that a well-designed CX strategy combines multiple CX metrics, based on user feedback. When you collect different types of feedback data, you get a holistic view of what exactly is going through your customer’s mind. To do so, it’s important to follow up CSAT, CES, and NPS questions with open-ended questions where users can leave qualitative feedback.

Working with metrics is an essential part of the cx-aware solutions development process. From the very beginning of the project, we start incorporating user feedback and CX metrics into the project roadmap. Want to learn what it looks like in practice, contact our team for more details.