Customers are the lifeblood of your business, so it makes sense that they should also be the motivating factor behind any major business + Read More
While the internet has opened up new markets for businesses around the world, it has also allowed competition from companies globally. In the 21st century, many companies are facing hordes of competition in almost every market.
This level of competition has increasingly led companies to research for new ways to get customers while retaining their existing customer base as well. Customers, being more informed than ever due to technology, now expect a certain level of customer service at all times. They assume that your team will have an up to date CRM system and that you will have the tools in place to not only respond to their concerns quickly but also address their issues.
In today’s economy, customers can easily compare your product with others online. Price is undoubtedly a factor in their decision, but perhaps a more significant factor is the level of expertise that your team offers. What service are you going to provide after the sale to differentiate your company from the competition? In order to provide high-level customer service while monitoring return on investment, companies need to use some metrics to measure success.
Customer experience (CX) is not a singular event, but the compounded impact of all touch points a customer encounters in their journey. A report released by Forrester explains that 72% of enterprises have made customer service management a top priority, showing just how much organizations are prioritizing the customer experience.
Different industries, and often different companies in the same industry, have entirely different customer journeys – meaning that customer experience is tied to the enterprise. Because of this, CX managers first have to identify what a positive customer experience looks like for their clients and target market. Next, changes that are likely to have an impact are made to the customer journey. This is an intensive and ongoing process that can take a lot of time and resources.
It is important to measure customer experience, not only to avoid wasting resources but also to ensure you’re truly improving the experience. The three metrics used for measuring customer experience are NPS, CSat, and CES; the latter measures customer effort and the rest are used to measure customer satisfaction. All these involve asking a customer to answer a simple question after they contact your business and get their issue resolved. Let’s explore these three metrics, starting with CSat.
CSat is widely popular key performance indicator (KPI) that was conceived in the 1970s and is used to measure customer satisfaction. This KPI has survived through all these years because of its sheer simplicity. CSat involves asking a straightforward question such as “How satisfied were you with the experience?” accompanied by a survey scale.
There is no single right answer on the scale that you can and should use, but most of the surveys choose a 1-5 scale or a 1-10 scale. A score of 1 means the customer is very unsatisfied and the higher numbers indicate that they are satisfied. Businesses around the world and in a variety of different industries and verticals use Customer Service Surveys with questions of this nature to determine the level of service they are providing to their customers.
While surveys tend to measure more than just any one single issue, each question can be tied to a specific individual component of service, for example, a new self-serve portal.
Positives of CSat
Negatives of CSat
Net Promoter Score was developed to replace the CSatT score and overcome the disadvantages of the KPI.
NPS can offer insight over the longer term, unlike the CSat score. NPS involves asking the customer how likely they are to recommend your business to family and friends. This is done through surveys usually on a scale of 1 -10 with a straightforward question such as, “How likely are you to recommend this product (service or business)?”
Depending on the answer given, the NPS score allows you to categorize customers into three groups.
NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. After asking about the likelihood of referring your business, a follow-up question is asked, framed something like: “What is the most important motivation/ reason for your answer?”
NPS scores provide valuable insight into implementing new strategies by dissecting answers and profiling customers based on their responses. A study conducted by Bain & Company found that companies with profitable and sustainable long-term organic growth generally have NPS scores that are two times higher than their industry competitors.
Positives of NPS
Negatives of NPS
The newest metric in our list, CES was developed by CEB Global in 2010 when it became apparent that customer satisfaction was not the primary motivation behind customer loyalty. This metric determines how much or how little effort a customer used in a transaction, interaction or other communication channels with the company.
Instead of focusing on increasing customer satisfaction and going over and above with the customer experience, it focuses on reducing the effort expended by a customer. The score is preceded by the question “How much effort did you personally have to use to complete your request?” A scale of 1 to 5 is normally used, with 1 representing the least effort and 5 depicting maximum effort.
Positives of CES
Negatives of CES
What is your experience with CES? Have you started using it in your organization yet, or are you using CSat and NPS to measure your customers? Let us know in the comments below.
Customer satisfaction surveys are an essential tool for any manager looking to drive customer service improvement. The eBook contains tips and techniques to help you get your survey off the ground, whether you’re creating a generic customer satisfaction survey or are looking for something more specialized.Download Now