The Importance of Measuring Customer Experience and Why You Should Independently Verify It
The field of customer experience is growing exponentially as businesses come to understand the importance of customer satisfaction and loyalty. The customer experience is one of the most important aspects of any business - satisfied customers are more likely to return, recommend your company to others and be less price sensitive. In order to measure customer experience and take action based on their findings, companies should look at some key metrics: customer satisfaction, customer loyalty advocacy/reputation, quality/operations, and employee engagement. But how are these metrics used?
Each of these metrics can be used independently or together in order for companies to get a complete picture of customer expectations, and customer satisfaction can vary greatly depending upon industry standards. It is important to compare customer experiences within a given industry when examining this metric, as well as tailor customer experience measurements to the customer base a company is targeting in order to provide the most value.
Customer Loyalty Advocacy & Reputation
Customer loyalty and advocacy are two of the most important aspects of customer experience, as they are indicative of customer satisfaction and can lead to increased revenue for a company. Loyal customers are more likely to return and recommend your company to others, while an advocate can sing the praises of your company to anyone who will listen. In order to measure customer loyalty and advocacy, companies should look at customer retention rates and customer referral rates. Additionally, companies can use social media listening tools in order to track customer sentiment and see whether or not customers are talking positively (or negatively) about their experiences with the company online.
Quality & Operations
Quality and operations are also important customer experience metrics in order to not only measure customer perceptions of the quality of customer service but also to ensure that customer expectations are being met. Customers place a high value on both fast customer service and high product/service standards, so it is important for companies to have mechanisms in place in order to track customer satisfaction with speed and performance.
Employee engagement can be another aspect of customer experience that needs attention, as employees who are engaged with their jobs (either because they like them or understand how their work benefits customers) tend to provide better customer experiences. Employee engagement can be measured by looking at turnover rates, absenteeism rates, customer retention rates, employee feedback surveys and even process performance analytics (which review whether or not processes are efficient).
There are many ways to measure CX and these few metrics are only a handful of them. Other metrics include Net Promoter® Score, overall star rating, and churn rate, amongst others; and useful metrics should be tailored to your company’s particular requirements. To discuss how best to measure your CX, get in touch with the experts at Investor In Customers today.
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