A great customer experience provides a solid foundation on which any business can base its marketing and operational efforts. As companies invest more of their budgets in customer experience optimization programs, they need a way to measure the results of their efforts.
When it comes to impressing customers, every company has unique goals. Despite this, there is still a list of fundamental KPIs against which every company can measure its success.
If you’re looking to benchmark your improvement activities, start with these customer experience KPIs:
- Retention Rate: Once a prospect has made the first purchase, your job is to find ways to transform him or her into a loyal customer for life. Improving retention rates is the first step to increasing revenue from your existing customer base. As expected, companies that provide a superior customer experience tend to have lower churn rates.
- Customer Acquisition Rate: Companies must continuously add new customers to their base to meet long-term growth goals. Providing a better experience from day 1 will keep prospects engaged throughout the buyer journey, and more likely to take the final step and make a purchase. Higher acquisition rates directly correlate with higher revenue rates.
- Conversion Rate: Companies with lengthy sales cycles need to craft customer experiences that keep prospects moving along their unique buyer journey. One way to achieve this is to continuously offer valued materials and compelling offers to help coax prospects to move to the next step. Optimizing user experience throughout the process will help boost conversion rates at every touchpoint. Improving the user experience at touchpoints with under performing conversion rates is critical to the buying process.
- Checkout Abandonment Rate: According to the Baymard Institute, the average shopping cart abandonment rate is 68.53%. Eliminating any barriers to purchase – hidden fees, expensive shipping options, inconvenient payment methods – will ensure that carefully selected purchases make their way into customer hands.
- Net Promoter Score: Net Promoter Scores (NPS) are a standard gauge for assessing a customer’s likes and dislikes. Obviously, if the dislikes outweigh the likes, you will need to work hard to overcome negative feelings. Using a Voice of the Customer program to straightforwardly ask customers how they feel at different touchpoints – and listening to their feedback – is vital to gathering the insights you need to optimize customer experience and boost net promoter scores.
- Customer Effort Score: Low Customer Effort Scores (CES) create loyal customers. Your customers are busy – they will abandon your site or app when they have to spend too much time accomplishing what they believe to be a standard task. By eliminating any friction between your customers and their intended goals, you can lower CES and increase customer experience across the board.
- Time on Site: The amount of time that visitors spend on your site is an indicator of how fresh and interesting your content is to specific buyer types. Finding ways to boost customer experience and engagement rates at every point on your website is the best way to increase revenues over the long run. Make your site easily navigable so that visitors can quickly access the content that resonates best with their needs.
- Multichannel Touchpoints: In a multi-channel world, it has become increasingly important to integrate customer experience to engage, acquire, and retain customers. Make an effort to expand the number of available touchpoints – interactive website, phone-based follow ups, emails, social media and more, and then analyze the data to better understand customer needs and behaviors.
What metrics do you use to measure the success of your customer experience?