Customer experience teams often find themselves facing the difficult task of deciding which KPIs to track to measure the success of their efforts. It can be hard to know where to start with so many options. This article will outline 5 KPIs that customer experience teams should use to monitor and improve their customer experience success.
1. Net promoter score
The net promoter score (NPS) has become a popular KPI for customer experience teams in recent years. The NPS is calculated by asking customers how likely they are to recommend your company’s product or service to others on a scale of 0-100. Customers who respond with a score of 90 or higher are classified as “promoters,” while those who respond with a 70-90 are classified as “passives.” The remaining customers, who respond with a score of 0-60, are classified as “detractors.”
The NPS can be used to measure the overall satisfaction of your customer base and track improvements over time. It is also one of the few KPIs that can be used to track customer loyalty.
2. Customer effort score
The customer effort score (CES) is a metric developed to measure the amount of effort customers feel they need to put in to get what they want from a company. The CES is calculated by asking customers how much effort they need to complete their most recent interaction with the company, and this is done through surveys, questionnaires, and interviews.
While the NPS focuses more on the customer-business relationship, CES focuses on the transactional level. The CES can be used to help identify areas where your company is making it too difficult for customers to do business with you.
3. Customer satisfaction score
The customer satisfaction score (CSAT) is one of the most popular KPIs for measuring the customer experience. The CSAT is calculated by asking customers to rate their satisfaction with a product or service on a scale. The score is usually presented as a percentage, with 100% representing total satisfaction and 0% representing complete dissatisfaction.
Unlike the customer effort score, which focuses primarily on a transactional lens, the CSAT can highlight both a transactional and relationship perspective. It can also be used to measure how likely customers are to return in the future and recommend your company to others.
4. Customer churn rate
The customer churn rate is a KPI that can measure how likely customers are to leave your company. It is calculated by taking the total number of customers left in a given period and dividing it by the total number of customers at the beginning of that period. This KPI can track improvements over time and identify potential causes of customer churn.
5. Customer lifetime value
The customer lifetime value (CLV) is a metric that can help track the profitability of your customer base. It can be calculated by taking the customer value and multiplying it by the average customer lifespan.
The CLV is a valuable metric because it allows you to track the long-term value of your customers. This can help you make better decisions about allocating resources to improve the customer experience.
You can also segment your customers by their CLV to understand which ones are more valuable to your company.
Customer experience tools teams can use.
Several different customer experience tools can help teams track and improve their customer experiences. A platform like Capacity can drastically improve your customer experience. Capacity uses AI and automation to help ensure customers get their questions answered 24/7/365. Using conversational AI chatbots, customers will receive answers to their questions instantly, without bothering your support team to step in for repetitive questions.
Capacity can also help you to understand additional metrics, such as:
- Rapid response rate – The number of issues that get solved promptly. This is done by measuring how long it took to reply to an issue and how long it took to solve it. Having a low response and solving time means you’re doing a great job quickly addressing customer concerns.
- Significant match rate – Using AI and machine learning, Capacity can accurately answer customer inquiries and solve problems. This ensures greater customer satisfaction and a lower churn rate.
- Quantity of questions answered – The number of questions answered by the help desk. Knowing how many questions are being asked and answered can help you to determine where your team needs to focus their efforts.
Conclusion
Companies looking to improve their customer experiences and ensure that they deliver exceptional services to all of their customers should consider using the KPIs outlined in this article. The metrics listed above can be used by companies and startups looking to build a solid foundation to grow into large businesses over time.
If your business would like to streamline support operations and improve customer satisfaction, give platforms like Capacity a try. With the help of AI and machine learning, you’ll be able to provide your customers with the support they need in a timely and efficient manner. Request a demo of Capacity, and find out how we can help you deliver exceptional customer experiences.