Conducting customer experience (CX) analysis is a great way to evaluate all elements of the customer experience, individually or as a whole. For example, you can see if specific processes (customer service, e-commerce checkout, etc.) are up to customers’ expectations, or you can gauge overall customer satisfaction of their experience with your brand.
Finally, tracking changes in CX over time allows you to evaluate your company’s efforts to transform or improve its digital customer experience.
The following article explains the metrics and KPIs that you should be analyzing to track customer experience.
5 Metrics to Track for Customer Experience Analytics
The metrics below should give you an overview of how your company’s efforts in improving CX are doing:
Net Promoter Score (NPS)
Customer Satisfaction Score (CPS)
Customer Effort Score (CES)
Upsell & Cross-sell Rate
The first three can be easily based on insights from customer surveys and the data can be collected concurrently. The last two can be tracked through your CRM or sales’ platform, whether prebuilt or custom-made.
Let’s get to it!
Net Promoter Score (NPS)
The Net Promoter Score (NPS) is a metric used to gauge general consumer opinion on your brand. All you must do is conduct a very brief NPS Survey, which asks simple questions to be answered on a 0-10 scale.
There are three types of respondents:
Promoters, who answer from 9-10
Passives, who answer from 7-8
Detractors, who answer from 0-6
Once the data is collected, you can use the below formula to find your NPS:
NPS = % Promoters – % Detractors
The next step comes in interpreting the results. The base goal is to be above 0 (net positive: more promotion than detraction) but each organization will have its own benchmark. Read our in-depth NPS guide for more details.
Customer Satisfaction Score (CSAT)
The Customer Satisfaction Score (CSAT) is derived from the common “customer satisfaction surveys”. It asks users to rate their experience from 1 (least satisfied) to 5 (most satisfied), though Hubspot also points out that scales of 1 – 3 and 1 -7 are also commonly applied. It is similar to the NPS in that the data is often collected concurrently.
A CSAT can show you how satisfied customers are with a specific process or piece of the overall customer experience. It differs from NPS, which gauges overall brand satisfaction and loyalty.
Using these two metrics together can provide a more complete picture of your customers’ opinions.
Customer Effort Score (CES)
The third metric is the Customer Effort Score (CES). This metric measures how easy or difficult a certain process is for customers. Data collection often takes the form of an agree/disagree question regarding the statement “it was easy for me to handle my issue.”
Agree and Strongly Agree answers would be given a high numeric value, while Disagree and Strongly Disagree would be given a low (or zero) value. Using this system, a low CES implies that customers find it difficult to complete the process in question. This means there is room to improve.
Make sure to include the CES in your CX analysis. It has become very popular for a reason: the Harvard Business Review found that the CES had the most predictive power in terms of increased spending and repurchasing!
Upsell & Cross-sell Rates
Upselling and cross-selling are effective techniques to increase the average order size of your e-commerce business. This sub-field of customer experience analytics revolves around customer behavior, while the previous one was about user opinions.
There is a common misbelief that these terms are interchangeable.
To recall: Upselling in e-commerce occurs when a similar but more expensive product is recommended, on the basis that it will provide the customer better value. Cross-selling involves recommending smaller purchases that complement the main purchase, for example, recommending accessories for a new camera.
Tracking conversion rates for these strategies can be complex and ambiguous. In fact, 50% of businesses don’t know the conversion rate of their cross-selling and upselling efforts.
It can take up a lot of dedicated resources to track this metric in detail (conversion by page, conversion by product recommended, etc.) and you may not even have a large enough sample size to compile meaningful information.
However, your company should at least track the overall conversion rate of all cross-selling and upselling efforts. Tracking and improving this conversion rate can help your company get ahead of the curve.
The final metric to track is the Churn Rate. The broad definition of churn rate is this: the percentage of customers who stop using your product or service in a given time period. Say your company has 100,000 subscribers and loses 5,000 in a month; the monthly churn rate would be 5%.
Be aware that churn is sector-specific both in its definition and in its average values. For example, based on these statistics: a 10% churn rate would be stellar for a retail bank, but alarmingly high for a telecom company!
Churn rate should be monitored over time and minimized. For further reading on reducing churn rate, you can check out our in-depth article that is summarized below:
- Stop selling to the wrong customers – create your buyer persona.
- Find out what the churn reason is.
- Try to spot any red flags.
- Offer great customer support!
- Create an exceptional customer onboarding process.
- Ask for feedback regularly and react to it.
These metrics should be tracked over time to monitor your company’s CX improvements. It is important to remember that you should adapt your CX transformation strategy based off the trends and improvements you are seeing – don’t partake in ineffective “set and forget” strategies.
Survicate makes it easy to get customer feedback for your customer experience analysis.
Our survey template library is a great starting point to reach out to your audience. This, in time, will allow you to calculate and track changes in NPS, CSAT, CES, and more!