8 Customer Experience KPIs You Need to be Tracking | Blings.io
yonatan | Nov 29, 2024
yonatan | Nov 29, 2024
Continuous improvement begins with careful measurement—it’s as true for Olympic athletes as it is for marketers and big brands. An exceptional customer experience is one of the most essential components of success; in many cases, it’s make or break.
Marketing leaders estimate that over 80% of organizations compete primarily based on the satisfaction of their buyers. Customer experience KPIs are one of the most effective and comprehensive indicators of how your users really feel and how their sentiment impacts their business.
What Are Customer Experience Kpis?
Customer experience key performance indicators (KPIs) are essential tools used in quantifying the various aspects of the customer experience, including emotions, stories, expectations, and results. These measures can offer invaluable insights into your success in specific areas that impact the customer experience, allowing you to benchmark and optimize your strategies and operations.
If the success of your product or service depends on how satisfied customers feel with your business, you must track relevant customer experience KPIs. There are many metrics to consider, and the selection process relies mainly on business-specific and industry-specific criteria. That said, some customer experience KPIs are especially relevant to forward-thinking businesses in 2024 and beyond.
Track for Success: Why You Need to Measure Customer Experience KPIs
The right customer experience KPIs for your business can aid in a number of ways:
Uncover weaknesses and areas of opportunity. Effective and accurate measurement of customer experience KPIs will give you invaluable information into where you excel and where you have room to improve.
Provide operational focus and clarity. Customer experience KPIs help communicate organizational goals and priorities to employees, providing the direction for activity prioritization.
Promote a customer-centric company culture. When success is measured through customer satisfaction and customer experience, they take priority over other KPIs in the eyes of your teams. Instead of focusing on revenues or margins, your employees will begin to see your business goals through the lens of customer experience.
Make informed decisions. As a marketer, gauging brand sentiment and customer perceptions is vital to making strategic decisions that contribute to a competitive advantage, customer satisfaction, and loyalty, as well as enable continuous optimization and customization of operations, messages, and products.
8 Customer Experience KPIs You Need to be Tracking
You can choose the right customer experience KPIs according to your business’s unique needs and goals. For example, B2B companies that focus on offline sales and reseller partnerships will have different customer experience KPIs to track than a B2C eCommerce shop or retail chain.
1. Customer Satisfaction Score (CSAT)
One of the most basic and common KPIs is the CSAT—customer satisfaction score. Data is traditionally collected through basic customer surveys after an interaction with the business (like a purchase or customer service ticket) so businesses can quickly estimate the overall customer sentiment.
To calculate your customer satisfaction score, divide the total number of customers who rated their experience as “Excellent” (5) or “Good” (4) in your survey by the total number of responses. Then, multiply the result by 100.
Word of mouth (or customer advocacy, as we marketers call it) is a powerful tool that can grow a business or kill it. The Net Promoter Score (NPS) quantifies the likelihood of customers recommending your services or products to someone else and is based on data collected through rating surveys on a scale of 1 to 10.
NPS is one of the most important customer experience KPIs to track, as it greatly aids in measuring customer sentiment and brand loyalty. Scores of 6 or below are detractors and are threats to your business, as those clients are likely to talk negatively about you to their friends and colleagues. Loyal advocates (promoters) will rate you as 9 or 10, and 7 or 8 are considered passive.
To calculate your Net Promoter Score, subtract the percentage of detractors from the percentage of promoters identified in your survey.
NPS = % of promoters – % of detactors
3. Customer Effort Score (CES)
Clients value (and often expect) a hassle-free and effortless customer experience. After all, you are working for them and not the other way around. How do you measure this complex level of effort? By simply asking your customers.
Similar to the NPS key performance indicator, the customer effort score (CES) can indicate the effectiveness of your customer experience enhancement efforts. Usually derived from survey results using a scale (like many other KPIs in our list), the CES aims to estimate how hard it was for a customer to complete a certain process or interaction with your business.
The Customer Effort Score (CES) is calculated by dividing the number of high ratings by the total number of respondents to a specific CES survey.
CES = (High-rating respondents / Total respondents) * 100
4. Customer Churn Rate (CCR)
The Customer Churn Rate (CCR) represents the abandonment rate of your subscribers. After all, happy customers tend to stick around. That’s why retention and customer churn rate (CCR) are vital KPIs, especially for businesses that operate on a subscription-based business model, like SaaS companies and streaming media service providers.
To calculate the CCR for a selected period of time, divide the number of customers lost by the number of customers you had at the start of the period. Multiply by 100 to get a percentage.
CCR = Customers lost during specific time / Customers at the beginning of specific time * 100
5. Customer Retention Rate (CRR)
The Customer Retention Rate (CRR) KPI is on the flip side of churn. This customer experience KPI tracks the number of returning customers in a specific sales period and the number of times each customer returns to make another purchase. A higher CRR indicates an overall positive customer experience and is an especially important KPI to track for companies that sell products.
To measure your CRR, subtract the number of new customers in a selected period of time from the total number of customers served in that time. Then, divide the result by the number of customers at the beginning of the period and multiply the number by 100 to convert the result to a percentage.
CRR = [(Customers at end- New customers acquired)) / Customers at start] * 100
As the name suggests, the Customer Lifetime Value aims to measure how much, on average, you can expect a customer to contribute to your revenues throughout the length of your relationship. This customer experience KPI assigns an estimated monetary value to every customer in the long term, aiding businesses in assessing customer satisfaction through customer loyalty.
Your CLV calculation formula depends highly on your business model. For example, for some companies, the formula would be the monthly recurring revenue (MRR) divided by the total number of accounts, which is then divided by the customer churn rate (CCR).
For purchase-based business models, the CLV is estimated by multiplying the average order value, average order frequency, and average customer business relationship duration.
CLV = (Average purchase value * Purchase frequency) * Average customer lifespan
7. Pages per Visit (PPV)
Typically, the Pages Per Visit (PPV) is an indicator of customer engagement with your website. It is especially important for eCommerce businesses, but it can be helpful for any type of business with a website in estimating the quality of the brand’s customer experience online.
There’s no need to calculate this KPI as it is usually available on your website analytics platform (Google Analytics, in most cases).
8. Conversion Rate (CR)
Last but not least is perhaps one of the most useful CX KPIs out there—the conversion rate. This customer experience KPI measures the percentage of users who performed a desired action (such as making a purchase, signing up for a webinar, or subscribing to a newsletter).
The conversion rate is frequently used to estimate the effectiveness of marketing tools and efforts and focuses on online actions. However, it is possible to use this KPI even if your website isn’t the center of your business operations. Simply replace website visitors with sales leads in the equation, and you’ll get your sales conversion rate.
Tracking your conversion rates for different campaigns, messages, or tools can help pinpoint the variables contributing to a positive customer experience. For example, using personalized video content like Blings clips can potentially double or even quadruple conversion rates (time 1.8 to times 4.2).
CR = Number of desired actions completed / Total number of leads or visitors
Boost Engagement and Enhance Customer Experience with Blings
One secret weapon to consider when improving conversion rates and reducing customer effort scores is data-driven video personalization. For example, Blings offers enterprises a turnkey solution to better engage and motivate your target audience to take action at any touchpoint along their customer lifecycle.
With Blings, you can bring storytelling to life through personalized and interactive videos that are updated in real time. Blings patented MP5 technology means the videos render on the edge device in real time, ensuring all content is up-to-date with immediate loading and no buffering. One-click integration with your CRM means videos are personalized and updated based on the database—when your customers’ information or status changes, the personalization does, too.
Start personalizing engaging content at scale, Book a Demo today.
