WAY TO A SUSTAINABLE CUSTOMER EXPERIENCE MEASUREMENT

“Customer centricity” or “customer focus” appear to be one of the most utilized strategic priorities of the companies for decades. On the other hand, there are really a few companies who consider this initiative serious.

Most of the companies may just focus on efficiency and cost optimization, while trying to generate more profitability and growth. At this point, the chances are that they do not give their customers the experience they deserve.

The true meaning of putting a priority in any business, requires a complete understanding of the related objective. In this case, we will elaborate on how to apply an easy and sustainable method to be customer centric. (1)

The challenge is to set an applicable model to measure CX, considering that there are multiple ways in terms of KPIs. Please find my former article on CX metrics here:?https://www.dhirubhai.net/pulse/how-choose-right-customer-experience-metrics-emel-?uhac?/

NET PROMOTER SCORE (NPS)

Among all CX metrics, NPS is the most common where two-thirds of companies choose to follow. (2)

The benefits of NPS can be listed as below:

• It is quite simple and fast.
• Changes in NPS enable companies to predict financials forecasts.
• Since it is a common metric for all industries, it helps to run benchmarks studies?

Especially, the last item has a unique importance that it?helps companies to differentiate themselves from the competition by prioritizing the customer experience.

Once the company builds its measurement model around NPS, other sub metrics begin to serve as enablers to create call to actions to enhance customer experience.?

A mistake often made in measuring the customer experience is relying solely on Net Promoter Scores. While these metrics are important, they’re based on a single moment in time rather than dynamically measuring the overall experience journey. Leveraging data throughout the engagement process enables you to fine-tune individual moments, driving better experiences across all touch points.

Satisfaction = Loyalty?

There is a thin line between "customer satisfaction" and "customer loyalty". Sometimes these two concepts are considered to refer to the same meaning, but in fact, not. The drivers for satisfaction and loyalty may differ. To be more concrete, you may find a bunch of loyal customers in your database who are working with your company for decades, but they may show low scores in terms of satisfaction metrics. Not every loyal customer may be very happy or a very happy customer may leave the company.

The common customer loyalty metrics are;

• “Churn rate”?is the rate at which customers choose to stop doing business with your brand.?
• "Retention"?is the opposite of churn. Your customer retention rate is the proportion of your customers who come back to do business again with your brand.
• "Life Time Value (LTV)"?is the revenue from a customer over the life of your relationship with them. The higher the lifetime value, the better your return on your investment in this customer.?(3)

These metrics?are used to identify the connection between?customer experience and the loyalty. Their mission is to lead a financial prediction initiating from the loyalty level of the customers.?

1.????https://www.kustomer.com/blog/customer-experience-metrics/

2.????https://lumoa.me/blog/customer-experience-metrics-and-kpis

3.????https://delighted.com/blog/customer-experience-metrics-brand-success

Emel ?uhac?