September 5, 2022

Successfully Calculate Your Customer Experience Measurement

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Measuring customer experience (CX) success is important as companies adopt customer-centric strategies. 49% of consumers have left a brand in the past year due to poor customer experience. (Emplifi) With statistics like these, CX becomes a key differentiator for customers, and it's important to quantify how well it's being done. Companies must make the right impressions and interactions throughout the customer experience journey.

CX can be measured in various ways, and analyzing different elements of customer experience management provides excellent insights. But what are the key measurements of success in delivering customer experience? What metrics are most important to track and evaluate? Where does a company begin? Let's first define customer experience measurement:

Defining customer experience measurement

Customer experience

The customer experience is the perception customers develop based on their interactions with that company. It results from all the touchpoints customers have with a brand, from their first awareness of the company to their post-purchase interactions.

Customer experience measurement

Measuring customer experience quantifies the effectiveness of customer interactions and touchpoints along the customer journey. This gives businesses valuable insights into how well they engage and retain customers. Measuring customer experience can help build stronger customer relationships and improve overall customer satisfaction.

Why companies need to measure customer experience

It's no secret that companies are under immense pressure to deliver excellent customer experiences, and it's not just about making a one-time purchase –customers who have a great experience are also more likely to become lifelong advocates for your brand.

Benefit #1: Gather everyone on the same page

Customer experience metrics help businesses prioritize initiatives impacting the bottom line the most. By understanding what customers want and need, businesses can allocate their resources more effectively to improve the customer experience.

Benefit #2: Engage your workforce

Companies focusing on customer experience are more likely to attract and retain talent because satisfied customers make an employee's job more enjoyable. In turn, happy and engaged employees successfully create positive customer experiences. Therefore, measuring customer experience drives the employee experience and serves as a key retention indicator.

Determining which metrics to measure customer experience

Determining which metrics to use to measure customer experience in your company is based on an organization's unique structure, business model, and KPIs. Whatever metrics you use ultimately must align with your business goals. By tracking these commonly used metrics, you can learn how your company is performing and where you need to make improvements:

Net Promoter Score (NPS). NPS is a popular metric for measuring customer experience. It's a simple yet effective metric that asks customers how likely they are to recommend your company to a friend or family member.

Customer Satisfaction (CSAT). CSAT is another popular metric for measuring customer experience. It measures how satisfied customers are with your company, product, or service.

Customer Effort Score (CES). CES measures how much effort customers have to put forth to use your product or service. It's a useful metric if you want to measure customer experience and customer service.

First Contact Resolution (FCR). FCR measures how often customers can resolve their issues on the first contact. It's an excellent metric to use if you want to measure customer service.

Average Handle Time (AHT). AHT measures how long it takes for customer service reps to resolve an issue. It's a great metric to use if you want to measure customer service.

Customer Churn. Customer churn measures how often customers stop doing business with your company. It's a metric that measures customer loyalty.

Lifetime Value (LTV). LTV measures the total value a customer brings to your company throughout their relationship. It's an excellent metric to use if you want to measure customer loyalty.

Social Media Sentiment. Social media sentiment measures how customers feel about your company on social media. It's a fantastic metric to measure brand awareness and reputation.

Web Traffic. Web traffic measures the volume of traffic your website gets. It's an excellent metric to use if you want to measure brand awareness and reputation.

Engagement. Engagement measures how often customers interact with your company. It's a great metric to use if you want to measure brand awareness and reputation.

Tips on processing customer experience data

Remember to process quality over quantity when it comes to CX data. Most of the time, companies pursue large amounts of consumer data. Still, the best way to retain functional knowledge is to narrow your search for the data that really matters: information that means the most to your audience.

Tip #1 -Capture a 360-degree overview

CX innovators employ data from various sources to form a comprehensive 360-view of each customer. This data may come from websites, in-app browsing, marketing interactions, chat, social media, customer support, and operational or transactional data. Most existing platforms and systems have a hard time aggregating all valuable data in to one place, but that's where the profound CX impacts come from.

Modern-day companies struggle to adapt to a customer-centric approach. OvationCXM outshines the rest by unifying information into a customer-focused dashboard that is assessed by various internal and external teams.

As companies add more partners and outside providers to their customer journeys to meet rapidly changing expectations, capturing a 360-view of the customer in real-time becomes an even tougher accomplishment, but one that can elevate the level of service they deliver.

Tip #2 -Enable predictive customer-centric data

Predictive analytics can improve the management of operations in several ways. First, it enables forecasts that are more precise and accurate. Instead of using simple arithmetic with a limited number of variables to predict demand, demand predictions can be made for specific products and services based on granular profiles of customer segments and behavior using many variables.

This generates forecasts closer to the actual demand, leading to better inventory management, capacity planning, and pricing decision-making. In addition, predictive analytics can help identify potential bottlenecks and issues in the operations process and suggest ways to resolve them.

Thus, predictive analytics can be a valuable tool for improving the efficiency and effectiveness of operations management.

Calculate customer experience measurement with confidence!

For businesses fighting for clients' attention, business, and loyalty, meet the next generation of CXM technology, CXMEngine. CXMEngine is the first to use customer interaction data to make on-demand, informed decisions to guide customers and overcome friction. CXMEngine helps the business owner evaluate the progress of the customer journey. By unlocking customer data that has been siloed in different systems, you can access and unify the customer view across every touch point.

Companies using CXMEngine receive real-time insights to fix their broken customer journeys. Instead of waiting until it's too late to address customer dissatisfaction, those using CXMEngine can step in at the right moment to ease friction and provide added support.

Calculating customer experience measurement with confidence means finding ways to improve the overall process in real-time, not after they submit surveys or feedback. Here at OvationCXM, we provide the solution to exceptional customer experiences, streamlined support, and increased productivity. Calculate CX measurements in confidence with CXMEngine!