5 Main Metrics to Measure Customer Experience

[fa icon="calendar"] 22 Agustus 2019 / by Duma Ambika

More companies are considering customer experience (CX) as an important factor in creating business plans and marketing campaigns. When your business is growing, you need to create a measurement system for CX. The system requires metrics to calculate customer experience and create proper strategies.

Why Do You Need Customer Experience Metrics?

The CX metrics help calculate the best marketing strategy. They provide clear measurements for customers' reactions and responses toward your products or campaigns. You need the data to create projections and determine the best marketing/engagement plans.

Calculating customer experience also helps business owners in finding the root causes behind lapses. When your marketing campaign does not bring satisfying responses, you can use the data from CX metrics to find the root causes.


Main Metrics in Measuring the CX

Here are the popular metrics you can use to measure and report the CX:

1.     Customer Satisfaction (CSAT)

The CSAT metric measures customer satisfaction with polls from a single interaction or purchase. The poll survey consists of a confirmation-style question, and customers give their answers by checking one of the answers that resonate with them. For example, the question might be, "How would you rate our new product?" and the answers range from "Very Satisfying" to "Extremely Disappointing” (or something similar).

CSAT is popular in social media companies or any businesses that offer new products. The answers are useful to measure the CX from one-time interaction.


2.     Net Promoter Score (NPS)

Net Promoter Score (NPS) asks the customers questions about a product or service, and whether they will recommend (“promote”) it to others or not. The answers are described in numbers 1 to 10, with comments such as “very likely,” “very unlikely”, and “I don’t know.” The customers who answer this survey are divided into Promoters, Detractors, and Passive.

The NPS is not only easy but also giving clearer pictures about the future revenue losses or gains. If your business relies on mouth-to-mouth promotions, NPS is a great tool to measure the customers' responses.


3.     Customer Effort Score (CES)

Customer Effort Score (CES) provides slightly deeper insights into the way customers acquire the products. The questions ask about how easy (or difficult) the efforts customers put forth to get products, resolve issues, or access the customer services. The question can be something like “how difficult is it for you to get the product?” The answers may range from “very easy” to “very difficult.”

This measurement is important to predict the numbers of repeat purchases and customer churns. Use the report details to determine which customers get the most and least of your products.


4.     Churn Rate Metric

The Churn Rate metric calculates the average amount of customers who don’t make purchases, even after inquiries. You can also use it for the term of service subscriptions (such as how many people who cancel subscriptions). You get the rate by dividing the numbers of lost customers with the starting ones. Both variables must be taken from the same periods.

The Churn Rate metric is important to detect the root causes of lapses and losses. You can also use the result to create a strategy for retaining old, loyal customers.


5.     Retention Rate Metric

Retention Rate metric is like Churn Rate but from the opposite camp. Retention Rate calculates how many customers making repeated purchases during certain periods. The result of this metric reveals the number of loyal customers. You can use it as a strategy to retain the loyalties of repeat customers. In many cases, keeping loyal customers is easy than inviting new ones.


You can use all or several of these metrics to measure the customer experience. They provide comprehensive responses about your customers’ reactions, giving you better plans to retain customers and reduce the churn rates.


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Topics: customer experience, digital marketing

Duma Ambika

Written by Duma Ambika