Customer Experience nowadays is the game changer aspect for any business. It requires efforts to improve the CX quotient, however, with help of different metrics, it becomes easier to keep track of how you are doing in terms of CX. Customer Experience is all about customers; how you please them and then how well you are able to monitor and track their experience. The world is overflowing with data and if as a business you fail to get access to the insights you might end up losing more than just the increasing market competition, you might as well lose a huge chunk of your customer base if you choose to overlook the insights and customer signals.
There are many metrics that can help you build effective and efficient strategies and also help you keep your customer base intact. let’s take a look at what these metrics are.
1. Net Promoter Score (NPS): Most commonly and widely used metric is NPS. This particular metric helps you get access to information like whether or not your customers are happy and whether or not they are willing to recommend your brand/company to their friends or colleagues. NPS can be tracked with the help of a simple question “on a scale of 1-10, how likely are you to recommend this product to your friends or colleague?” This is the basic structure of the NPS question and it can be modified according to the need. Based on the score, you can identify your customers in 3 categories Promoters, Neutral, and Detractors. Once you identify them you can take necessary actions accordingly.
2. Churn Rate: This metric helps you figure out the number of customers who stopped coming back to your business for further purchases. It helps you see the number of customers you lost over a certain period of time. No business is immune to Customer churn; however, this metric can help you at least figure out the reasons and slow down the numbers of churn. It is calculated by dividing the number of customers lost during a particular timeframe by the number of customers there were at the beginning of the timeframe.
3. Referral Rate: Net Promoter Score (NPS) helps you track whether or not your customers are willing to refer you to their friends and colleagues and Referral Rate helps you determine how many of them actually did refer your business within their social groups. RR’s can be achieved and measured with the help of specially designed referral programs with unique links for each program according to your target customer base.
4. Customer Retention: this metric helps brands and companies track how many customers they were able to retain after their customer's first interactions. It is the opposite of Customer Churn Rate and helps businesses to ask for their retained customers' feedback about what they are doing right in terms of Customer Experience. This activity helps businesses improve their strategies.
5. Customer Satisfaction: By all means, this is one of the most important metrics of all. Businesses exist because of their customer base and keeping them happy and satisfied is all it takes to grow and succeed, other than offering great services and products of course. Brands can easily track this metric by simply asking their customers whether they are happy with their services or not.
If you read carefully and do your research, you will find that each metric supports and complements the other metric. If a business is focusing only on any of the metrics and is ignoring the rest of them, they might not be able to utilize the full potential of any of the metrics and might end up losing revenue and investments made.
At Dropthought we believe that to build a sustainable relationship with a customer, we must value their feedback. We believe in building a situation-based and feedback-centric client engagement plan that will not only help businesses to leverage the data collected abundantly but also if done right this can turn into a long-lasting opportunity to keep your customers intact and keep the revenue bar up and running.
To learn more, simply click here!