How do you know if your customers are satisfied and will refer your company? What are ways you can measure customer experiences as well as predict future behaviors?
Most people are familiar with the Net Promoter System. The NPS score is derived from a simple question: “On a scale of 1-10 with 10 being highest, how likely are you to recommend [the company, brand, or product] to a friend or colleague?” There’s a lot of controversy about this metric simply because people don’t fully understand the system.
I interviewed Rob Markey, co-founder, and pioneer of NPS at Bain, who explained in simple terms what NPS is and what it is not. He also shared proven tactics to measure customer experiences and maximize satisfaction that goes beyond the price of products and services.
Press the play button below to hear DoingCXRight® Podcast episode.
My conversation with Rob Markey prompted me to think more about how customer experience leaders can expand their measurements because we need a holistic view to improve “pain points” along the ENTIRE customer journey.
3 Ways to Measure Customer Experiences & Understand The WHY behind your Net Promoter Score (NPS)
To measure customer experience (CX), service, and support, you can add metrics such as: value enhancement score, customer effort score (CES), and customer satisfaction (CSAT). Gartner research provides three helpful definitions, originally posted here.
Value enhancement score (VES)
According to Gartner, “Enhancing the value that customers perceive through service interactions boosts their loyalty by raising their confidence in the purchase decisions they’ve made — and in their belief that they can achieve more with the company’s product or service … Measuring VES validates the impact that customer service’s value enhancement efforts have in boosting loyalty.”
Customer effort score (CES)
As Gartner explains, “CES measures customers’ perception of how easy it is to handle their issue or question during customer service and support interactions … CES is also a key predictor of disloyalty. Knowing who experiences high effort enables customer service and support leaders to proactively identify at-risk customers and mitigate churn.” If you are interested in learning more about measuring customer experiences as it pertains to Effort Score, listen to my podcast interview with Adam Toporek about creating a frictionless experience to get and keep customers.
Customer satisfaction (CSAT)
“CSAT measures customers’ perceptions of whether a company’s product or service meets their needs and expectations. Service and support leaders can primarily use CSAT to measure the satisfaction level of specific aspects of their interactions, such as the CSR they spoke to or the channel they used. CSAT feedback is most commonly captured through a post-transaction survey but also can be captured through speech analytics or other voice of the customer (VoC) methods,” Gartner explains. There are many ways to improve CSAT scores and utilize the data to impact other business objectives. Contact me if you want to discuss further.
1. You can’t improve what you don’t measure. So, make sure you are measuring customer experiences and digging deep into how customers think, feel and perceive your brand. Net Promoter (NPS) is valuable, however, do not over-rely on one measurement.
2. Customers know if you are “checking a box” and pretending to be customer-centric. If you ask for feedback and do nothing with the insights to improve experiences, you’ll end up impacting customer frustration resulting in less revenue and retention over time.
What would you add to the list?