What are the best metrics for measuring CX innovation effectiveness?

CSAT is the single most overrated yet the most widely used experience metric that exists. It's easy to distribute and capture post-transaction numeric responses - typically a set-it-and-forget-it survey sent from the ticketing system. For this very reason, more often than not, CSAT's a ripe watermelon - bright green on the outside but red on the inside. It's only sent to those who consume the service, completely overlooking those who've given up on the service. It yields little actionable data. And when I poll those who use CSAT to measure their customers' experience, most don't believe their own results! Word on the street sentiment rarely aligns to CSAT scores reported. Use it at your own risk; report it with a HUGE grain of salt.

For me the optimal method for gauging customer experience (CX) is through assessing customer lifetime value. Satisfied customers often evolve into brand advocates and actively promote the brand. This positive customer engagement is further evident in the brand's retention rates and customer loyalty.

Customer Satisfaction (CSAT) scores, Net Promoter Score (NPS), Customer Effort Score (CES), and Return on Investment (ROI) specifically for CX efforts are some important metrics for assessing the efficacy of Customer Experience (CX) innovations. Furthermore, monitoring customer retention rates and qualitative feedback via surveys or sentiment analysis can provide information about how CX improvements affect customer engagement and loyalty.

Here is the point which should definitely be taken into account about CSAT. Many organizations measure CSAT on transactional level, specifically after providing direct service/support to customer and ask to measure the interaction. This is a good way of understanding how things go overall, as customers usually evaluate not only the quality of service but company products/services/ processes overall (despite question about service level). The most important here is to understand the most impactful drivers of low/high marks, linking reasons and focusing on improvement of most painful ones. By the way, it's common thing that low CSAT is not always driven not by poor service of CS.

In my experience for CX innovation would be effort score - if it is easy to buy from you I will keep coming back. Amazon has made it super easy, Chewy makes it easy and fun for pet lovers. Next would be your detractors from your NPS score. They give you the information on what you need to change in the customer journey and what training needs to happen in your Customer Service department.

I believe that NPS is a THEE metric that can be directly tied to a company’s growth or decline. If you want to know how you’re doing, listen to your customers and those closest to your customer, your frontline team members. Equally important, in fact more important is listening to what they are saying through their verbatim comments. Don’t over-think or over-analyze. Simply take them at their word. Too often company’s spend hours, resources, and dollars deep diving into something so simple. Take care of your customers, take care of your employees, be quiet, and listen. Then provide the coaching, training, and tools to do the job, clearly communicate the expectations, recognize the right behaviors, and hold people accountable.

Similar to CSAT, NPS cannot measure CX Innovation Effectiveness. It is a measure of customer loyalty and largely a B2C metric.

NPS is the one we used in our company. Also we added a T to be looks TNPS as every touch points that deal with the customers and their satisfaction level on department level Like call center NPS, Retail NPS, and so on

NPS can show whether your company is going in the right direction, generally speaking. It doesn't give much insight as of what is working or why.

NPS is a pivotal metric in gauging customer sentiment and loyalty. Its simplicity, derived from a direct question about the likelihood of recommending a product/service, masks its profound impact on understanding customer advocacy. NPS provides a clear measure of customer satisfaction and potential brand ambassadors. When applied to CX innovation, it becomes a powerful tool for evaluating the success of new initiatives. It goes beyond mere satisfaction to reveal how innovations influence loyalty, retention, and advocacy. The ability to benchmark against competitors and identify the specific factors impacting customer referrals positions NPS as a strategic guide for businesses committed to enhancing customer experience through innovation.

Customer Effort Score (CES) is a decent but incomplete CX metric. By capturing in numeric terms how easy or difficult the customer finds the support function, CES helps to identify the DEGREE of friction a service consumer feels. What CES lacks, however, is detail on WHERE and HOW the friction is introduced. Thus, CES is a starting place for deeper exploration of friction points along the customer journey. In and of itself, however, CES is not particularly actionable.

n my experience, Customer Effort Score (CES) has been a game-changer. Let me share a real-world example. In a previous role, we revamped our customer support portal, aiming to make issue resolution seamless. By implementing a user-friendly interface and intuitive navigation, we saw a significant drop in customer effort. The CES scores reflected this improvement, with customers consistently rating their interactions as low effort. This not only boosted customer satisfaction but also highlighted the impact of our CX innovation in streamlining processes. It reinforced the idea that tangible improvements, grounded in customer feedback, can elevate the overall experience and drive positive metrics.

Customer effort score (CES) measurement will help in decifering the effort %age that customer(s) are required to put in from their end to get the service. The lesser the customer effort, more happy will be the customer. The higher the CES, the greater effort will be required in terms of automating the process, simplifying the process, making the communication flow better and so on...

I feel this indicator correlates directly with Customer Experience initiatives. If an otherwise loyal or engaged customer finds it difficult to engage with your brand;they are more prone to flight. There are two main factors that companies need to focus on regarding excellent service execution. The first is new customer onboarding and the second is problem resolution. These two are non negotiable factors and are often flubbed resulting in poor customer retention. A customer may love your product or service but if it’s difficult to get or keep, they will seek alternatives.

CES is a good metric, if your organization is willing to be self-reflective and management takes the time to understand where the pain points are: is it the product, or technical support, or something else? There are usually some constraints or limitations, (time, money, resources, etc) so instead of aiming for perfection a reasonable goal is to aim for improvement.

Im deutschsprachigen Raum hat der Customer Lifetime Value (CLV) eine hohe Bedeutung als Kennzahl zur Bewertung der langfristigen Wertigkeit von Kundenbeziehungen. Der CLV hilft Unternehmen, den potenziellen Gesamtwert eines Kunden über die gesamte Dauer der Gesch?ftsbeziehung zu sch?tzen. Diese Einsch?tzung ist wichtig für strategische Entscheidungen, Marketinginvestitionen und Kundenbindungsma?nahmen. Als Alternative zum CLV werden oft kurzfristigere Kennzahlen wie der Customer Acquisition Cost (CAC) verwendet, der die Kosten der Neukundengewinnung misst, sowie der durchschnittliche Umsatz pro Kunde (Average Revenue per User, ARPU) für kurz- bis mittelfristige Umsatzabsch?tzungen.

Customer Lifetime Value (CLV) is a crucial metric providing deep insights into the lasting impact of CX innovation. Picture a tech company investing in streamlined customer support, reducing resolution times, boosting satisfaction, and fostering loyalty. CLV enables a tangible measurement of increased revenue from satisfied customers over the long term. It's not just about short-term gains but understanding the holistic, enduring value each customer contributes. This guides strategic resource allocation, ensuring CX innovations enhance the experience for the most valuable customers, fostering sustained profitability and business growth.

One of the things I like about CLV is that it takes into account the acquisition cost. What's especially helpful is when you can take it a step further, and revisit this metric over time. For example, a prospective customer requested a new feature that would require a significant investment from our development team. We looked at the potential CLV, but also took into account what it would mean for our other customers. It allowed us to not only demonstrate our commitment to this prospective customer, it also gave us the opportunity to expand our footprint with other customers, and thus increase their CLV.

CLV is a valuable metric, but it comes with pros and cons. On the positive side, CLV provides a comprehensive view of a customer’s worth over time, aiding in strategic decision-making and resource allocation. It helps identify and prioritize, high-value customer segments, allowing for more targeted marketing efforts. However, challenges include the complexity of accurately calculating CLV, as it involves predicting future customer behavior. Furthermore, it might not be as effective for businesses with rapidly changing markets, or those heavily reliant on short-term sales.

Customer Lifetime Value (CLV) is a critical metric that often holds significant untapped potential for businesses. While its importance is widely recognised, its full development are sometimes overlooked. CLV represents the total value a customer is expected to bring to a business throughout their entire relationship. Understanding and maximizing CLV is akin to unlocking the hidden treasure within your customer base. It goes beyond short-term gains, offering a strategic lens to identify high-value customers, tailor marketing strategies, and foster long-term loyalty.

Well I would say the better our communication and connect is with the customer the earlier and higher will be the adoption rate by customers. Multiple factors can lead to varied changes that can help in delivering great customer service.

Seul il ne donne qu’un chiffre, l’idéal est de pouvoir comparer différents indicateurs avant et après et surtout quel est l’impact de cette innovation sur l’engagement, la satisfaction client, la fidélisation.

Innovation adoption should measure both usage and engagement - how much of the innovation a customer is utilizing - whether it is about feature usage or license usage or a combination - but this by itself may not be enough in the long term.....how much the customer engages with the platform and the touchpoints, is key too...that shows continuous adoption/ usage...and when lacking, can be an early indicator of attrition

The Innovation Adoption Rate is generally considered a useful metric in the high-tech industry, especially for businesses that are introducing new products, technologies, or features. This metric is commonly associated with the diffusion of innovations theory, which categorises adopters into different groups based on their willingness to try new products or technologies. A great example is Microsoft's recent launch of Copilot to boost the Microsoft 365 adoption rate.

I think innovation depends on the level at which the customers comprehend the matrix and measure evaluation of a CX launch strategy, as some innovative technique are not necessary. Especially if it looks vague and unreasonable to the customers, maybe due to the satisfaction derived from the previous products, business needs to carry out great deal of survey to implement some innovation

Simple and very effective way to look at is, how many of the customers have repeat transactions in the platform consistently over a period of time and this can be bifurcated by customers whose had no effort and high effort ! Bingo ..

Pour évaluer l'efficacité de l'innovation en expérience client, utilisez des indicateurs tels que le Taux de Satisfaction Client (CSAT), le Net Promoter Score (NPS), le Taux de Rétention Client, le Taux d'Adoption des Nouvelles Fonctionnalités, la Durée du Cycle d'Achat, le Taux d'Abandon de Panier, le Feedback sur les Réseaux Sociaux, la Mesure de l'Effort Client (CES), le Taux de Conversion, et l'Analyse des Données d'Utilisation pour obtenir des insights précieux sur la satisfaction et la fidélité des clients.

I think the answer is, it depends! Depends on the category, brand and stage of journey. A relevant dashboard for the brand with multiple metrics can work well to cover a holistic understanding.

Customer health index is another powerful methodology , also ACSI with thorough care is an important tool I have advised a number of corporations and i have successfully led efforts to kick and launch the “tri*M” score as a measurement that covers both performance and preference dimensions of the experience Combining NPS or Customer efforts score could be a smarter mix that serves the CX program

- Implement automated survey systems to gather CSAT, NPS and CES data, allowing for timely feedback and analysis. - Segment survey results to identify which specific CX innovations are positively impacting customer satisfaction, advocacy and ease of use. - Use data analytics to track CLV, comparing customers who have engaged with your innovations to those who haven't. - Monitor and improve the adoption rate of your CX innovations through targeted marketing and educational efforts. - Continuously analyze and iterate on your CX innovations based on the metrics and feedback collected.