How do you measure the impact of BPI on customer satisfaction?

1 Customer satisfaction score

One of the most widely used metrics for measuring customer satisfaction is the customer satisfaction score (CSAT). CSAT is a simple survey question that asks customers to rate their satisfaction with a product, service, or interaction on a scale of 1 to 5, where 1 is very dissatisfied and 5 is very satisfied. CSAT can help you gauge how well your BPI efforts are meeting or exceeding customer expectations. You can calculate the average CSAT score by dividing the sum of all ratings by the number of responses.

2 Net promoter score

Another popular metric for measuring customer loyalty is the net promoter score (NPS). NPS is a survey question that asks customers to rate their likelihood of recommending your product, service, or company to others on a scale of 0 to 10, where 0 is not at all likely and 10 is extremely likely. NPS can help you assess how well your BPI efforts are creating promoters, who are loyal and enthusiastic customers, and reducing detractors, who are unhappy and dissatisfied customers. You can calculate the NPS by subtracting the percentage of detractors (ratings of 0 to 6) from the percentage of promoters (ratings of 9 or 10).

3 Customer effort score

A newer metric for measuring customer satisfaction is the customer effort score (CES). CES is a survey question that asks customers to rate how easy or difficult it was to complete a task, solve a problem, or get a service from your company on a scale of 1 to 7, where 1 is very easy and 7 is very difficult. CES can help you evaluate how well your BPI efforts are simplifying and streamlining the customer journey. You can calculate the average CES score by dividing the sum of all ratings by the number of responses.

4 Customer retention rate

A key metric for measuring customer loyalty is the customer retention rate (CRR). CRR is the percentage of customers who continue to do business with you over a given period of time. CRR can help you measure how well your BPI efforts are retaining and growing your customer base. You can calculate the CRR by dividing the number of customers at the end of the period by the number of customers at the beginning of the period, and multiplying by 100.

5 Customer lifetime value

A strategic metric for measuring customer profitability is the customer lifetime value (CLV). CLV is the estimated net profit that a customer will generate for your company over the course of their relationship with you. CLV can help you determine how well your BPI efforts are increasing the value of each customer and optimizing your return on investment. You can calculate the CLV by multiplying the average revenue per customer by the average customer retention rate, and dividing by the average customer acquisition cost.