A strong customer relationship starts with listening. For customer-centric organizations, customer feedback is essential to understand customers and optimize business results. But how do you measure whether a customer is really satisfied? And which KPIs provide the best insight? In this article you will discover how to convert customer feedback into measurable results that contribute to sustainable growth.
Measuring customer experience for more sales and loyalty
Understanding customer experience is crucial for revenue growth. A positive experience creates loyal customers who not only come back more often, but also contribute to a strong online reputation and lower acquisition costs. Research shows that loyal customers recommend products more often, are less likely to switch and have a higher average spend. The result? More returns and a more powerful brand experience.
According to customer experience expert Ruby Newell-Legner:
- Only 4% of disappointed customers actively complain;
- 90% of dissatisfied customers leave without giving feedback;
- A customer satisfaction of 80% still leads to a customer churn rate of 18%.
These figures underline the importance of effective customer feedback to retain loyal customers.
Essential KPIs for customer feedback: NPS, CES and CSAT
Measuring customer feedback can be done in various ways, depending on your objectives. The most commonly used KPIs are:
- Net Promoter Score (NPS): Measures the loyalty through the recommendation question: “How likely is it that you would recommend [product/company] to others?” NPS helps to quickly gain insight into customer loyalty.
- Customer Effort Score (CES): Gains insight in the customer journey by asking: “How much effort did it take to get your question answered?” With CES you measure how easily customers are helped during various contact moments.
- Customer Satisfaction Score (CSAT): Assess customer satisfaction after a purchase or interaction by requesting a rating. CSAT is ideal for sectors where recommendations are less appropriate, such as healthcare institutions or government agencies.
These proven KPIs have a direct relationship with revenue growth, especially when the focus is on one measurement method throughout the organization. This enables consistency in customer feedback.
Optimize customer experience with the right KPIs
By using the right KPIs within the customer journey, you gain valuable insights into customer needs and brand experiences. By building in automated feedback moments, you continuously collect data without inundating customers with unnecessary questions. This provides a solid basis for data-driven decisions and customer-oriented policies.
Would you like to learn more about how to implement and calculate KPIs to improve customer experience? Download the e-book “A successful CX program – From measuring to improving!”. This practical eBook is full of calculation examples and tips to take your customer feedback strategy to the next level.
Download the eBook and discover how you can make your customer experience measurable!
