You’re chasing rainbows if your organization is still not placing a premium on overall customer experience. Low customer satisfaction not just costs you revenue and customers but with social media now accessible at fingertips, it doesn’t take many complaints to go viral to tarnish a brand’s image.
Luckily, plenty of researchers and industry experts have contributed to the customer experience metrics to optimize the customer journeys and in this blog, we will discuss Net Promoter Score (NPS), Customer Effort Score (CES), and Customer Satisfaction Score(CSAT) that can be measure customer satisfaction with real-time feedback.
Why is Customer Feedback important?
Simply put, asking for feedback from customers enable companies to gather and analyze distinct varieties of data which helps them adjust their products and services and come up with future strategies.
But more importantly, you communicate to the customer their opinion is important to you. Customer Voice is a very vital aspect of customer experience because it captures, analyzes, and reports on all customer feedback—expectations, likes, and dislikes—associated with your company.
What is Net Promoter Score (NPS)?
First developed by Fred Reichheld at Bain & Company, Net Promoter Score is a measure of customer perception about a company, product, or service. If you want to understand customer loyalty and customer’s overall relationship with your business, NPS is the right metric for you.
Essentially this is encapsulated in one survey question:
- Promoters: Loyal customers who respond with a score of 9 or 10.
- Passives: Customers satisfied with the services but indifferent. They respond with a score of 7 or 8.
- Detractors respond with a score of 0 to 6. These are unhappy customers who are unlikely to buy from you again, and may even discourage new customers.
The score is calculated by subtracting the percentage of Detractors from the Promoters obtained from the NPS survey.
NPS Score = % Promoters – % Detractors
Advantages of NPS:
- Simple: Answering one question gives you a quick score.
- Globally Used: As it is used by multiple big organizations such as Amazon, Apple, CVS, etc., it is easier to benchmark against competitors.
- Customer Loyalty: Because it is a feedback of the product, it is widely used to measure the likelihood of new and repeat business.
What is Customer Effort Score (CES)?
Customer Effort Score is also a single question that gauges the ease of customer experience while getting issues resolved. It is almost always asked after an interaction with a product/service that led to a purchase or subscription or a resolution.
It is a great survey to find what certain actions complex or “high effort” when a customer wants to reach a brand and other resolution processes could be streamlined to provide customers with more seamless customer experience.
There are many variations to this question but often for the CES survey, a question like this is put forth, scoring the response on a scale from 1 to 7, with 1 CES score representing the highest level of disagreement with the statement.
1 = Strongly Disagree
2 = Disagree
3 = Somewhat Disagree
4 = Neither Agree nor Disagree
5 = Somewhat Agree
6 = Agree
7 = Strongly Agree
Advantages of using CES:
- The strongest predictor of Purchasing Behavior: In a study conducted by HBR, that the data shows 94% of consumers who “very easily” interacted with a product purchase were likely to repurchase.
- It focuses on the consumer experience and helps you pinpoint the exact areas that need improvement for enhanced customer experience.
What is Customer Satisfaction Score (CSAT)?
As discussed in our last post, the Customer Satisfaction Score is a measure of customer happiness. Typically sent following a concluding touchpoint of specific interactions such as the end of a call with a customer support agent, a CSAT question, or a customer survey is sent asking how satisfied the customer was with that interaction.
This rating scale can be a 3 point scale (by default in HappyFox) but easily customizable to other point scale or even smileys. The CSAT score is then calculated as the percentage of satisfied customers against all responses recorded from the CSAT survey.
CSAT = Number of Positive Response / Number of Responses * 100
Advantages of CSAT:
- A simple and straightforward customer satisfaction metric, understood by everyone.
- Highly customizable to match businesses’ needs.
- Because this is a concise survey, the response rate is much higher than other customer metrics.
To summarize, which one to implement comes down to what the organization wants their company to focus on. Amongst CX metrics discussed if the loyalty of the entire customer base is what the organization wants to analyze, implementing Net Promoter Score (NPS) would be the right choice.
But if you want to assess what product or service leads to what scale of short term customer interaction, using the Customer Satisfaction Survey (CSAT) would be a better measure of the customer sentiment. If the aim of the company is to streamline touch points to get their customer’s problems solved, quickly and conveniently, Customer Effort Score (CES) would be a great metric to focus on.