Table of Contents
It can be hard to set KPIs for customer experience. It’s easy to measure the number of conversions, but what about other metrics? What is a good way to show that you’re asking the right customer satisfaction questions, improving your customer experience and creating loyal customers?
In this blog post, we will discuss how businesses should evaluate their success in reaching these goals, and provide some examples.
How to choose meaningful KPIs
One way to set customer experience KPIs is to look at what others in your market are doing. What are they measuring? How are they measuring it? Are they even focusing on the customer experience? (If not, that might be an area where you can differentiate yourself and gain an edge!)
If it’s hard to tell what your competitors are doing, try benchmarking yourself against the industry or comparable industries. What does the “ideal” customer experience look like? Once you have an idea of what good looks like, you can start measuring how well you’re doing in comparison.
Now you have a better idea of what is normal for the market, you can come up with your own KPIs that are specific to your business.
The most popular customer experience metrics
If you’re still unsure about what KPIs to choose, here are some popular ones that other businesses have used successfully:
- Customer Satisfaction Score or CSAT is a metric that shows the percentage of customers who are fully satisfied with your product or service. It’s usually measured through surveys, where customers are asked to rate their satisfaction on a scale from one to five.
- Net Promoter Score or NPS is a metric that shows the percentage of customers who would recommend your product or service to others. It’s measured through surveys, where customers are asked to rate their likelihood of recommending on a scale from 0-10.
- Customer Effort Score or CES is a metric that shows how much effort customers expend when interacting with your product or service. It’s measured through surveys, where customers are asked to rate the ease of completing specific tasks on a scale from one to five.
- Loyalty Program Engagement measures how engaged customers are with your loyalty program. This can be measured through surveys, but it’s also possible to track things like the number of memberships sold or the average redemption rate.
- Repeat Purchase Rate/Frequency is a metric that shows how often customers purchase from you again. You can calculate this by dividing the number of customers who have made at least one additional purchase by the total number of repeat buyers.
- Customer Service Response Time is a metric that shows how quickly your customer service responds to requests for help or information. You can measure this through surveys, where customers rate their satisfaction with response times on a scale from one to five. Alternatively, you can also track the amount of time it takes to resolve customer complaints.
- Social media sentiment analysis is a metric that shows the overall tone of social media conversations about your brand. This can be measured through tools like Hootsuite or Sprout Social, which track things like positive and negative mentions, sentiment score and top keywords.
There are many other customer experience KPIs out there, but these are some of the most popular ones.
The most important thing to remember is that KPIs are most useful if they’re actionable – so choose ones that will help you do something! If all your CX metrics are trending in the wrong direction, for example, you can use that information to make changes and improve your customer experience.
How to track your KPIs
Once you have your KPIs set, it’s important to track them regularly and make changes based on what you’re seeing. If customer satisfaction is dropping, for example, you’ll want to investigate why and take corrective action.
It’s common for online businesses to use software like Google Analytics, Mixpanel or Salesforce to track customer experience KPIs. This gives you a bird’s-eye view of how your customers are interacting with your website or app.
But what about when you need feedback about experiences that happen in the real world? That’s where customer feedback tools come in.
One approach to tracking customer experience in the physical world is through surveys or feedback forms. You can send these out after a purchase, for example, or you could leave them in strategic locations (like near the exit of your store). This gives customers a way to provide feedback anonymously and on the spot.
Another way to track customer experience is through social media monitoring. Tools like Hootsuite or Sprout Social can help you see what people are saying about your business on Twitter, Facebook and other platforms. This can give you a good indication of how well you’re delivering on your customer experience goals.
Whichever tools you use, make sure to follow up on the feedback. If a customer is complaining on social media about poor service, for example, it’s important to respond quickly and address their concerns as best as possible.
Setting customer experience KPIs is an important part of any business, but it can be hard to know where to start. Hopefully, this blog post has given you a few ideas on how to get started.
Remember, most CX professionals will tell you that setting customer experience KPIs is a balancing act. You need to find metrics that matter for your business, but they also have to be measurable and actionable – so choose wisely!
The most important thing is to not get discouraged! It can be hard to set KPIs for customer experience, but it’s very important. Even if you don’t have the feedback to measure your success initially, keep trying and eventually you’ll build up a valuable set of data.
Tom is the co-founder of TRACX, a no-code marketing platform that allows local business owners to collect customer feedback and create engaging marketing campaigns. With over 17 years of experience in entrepreneurship, product development, and marketing for businesses large and small, Tom is currently responsible for developing product and marketing strategies for TRACX.