The power of CX measurement

From insights to excellence

Welcome to the world of exceptional customer experiences! In this blog post, we'll uncover the power of measuring customer experience (CX) and how it can propel your business to new heights. We will dive into the significance of CX measurement frameworks, explore different measurement approaches and key metrics, touch on the latest trends, and tackle the challenges that come along the way. So, let's begin.

Why measure CX?

Let's get real. Customer expectations have evolved tremendously over the past few years. CX is your organization’s primary differentiator, yet how we measure CX hasn’t kept up. Customer satisfaction doesn't happen by chance—it's a result of strategic efforts and continuous improvement. A robust CX measurement framework acts as your trusted guide, helping you analyze and optimize customer experiences effectively. It unlocks the hidden treasure of customer insights, enabling you to make informed decisions, create unforgettable experiences and drive positive business outcomes.

Here is why it matters:

• Insights into customer satisfaction: By measuring customer experiences, you gain valuable insights into customer satisfaction levels, allowing them to identify areas of improvement and address pain points promptly.
• Competitive advantage: Organizations that prioritize CX measurement have a competitive edge. Understanding customer preferences and delivering exceptional experiences differentiate them from competitors, leading to increased customer loyalty and market share.
• Enhanced decision-making: Data-driven CX measurement enables informed decision-making. By analyzing customer feedback and behaviour, businesses can make strategic adjustments to products, services, and processes to align with customer expectations.
• Business growth: Satisfied customers become brand advocates, attracting new customers and driving revenue growth. Positive customer experiences also lead to higher customer retention rates, reducing acquisition costs and fostering long-term business success.
• Continuous improvement: CX measurement provides a basis for continuous improvement. Regular monitoring and analysis of customer feedback helps businesses identify trends, track progress, and adapt strategies to evolving customer needs, ensuring ongoing success in a competitive marketplace.  

Key metrics for CX measurement

According to Forrester, there are three types of CX metrics you can use to understand how customer perception and behaviour impact business objectives.

1. Perception metrics

Perception metrics focus on measuring customers' subjective perceptions and experiences with your brand, products or services. These metrics provide insights into how customers feel about their interactions and overall satisfaction. Examples of perception metrics include:

• Customer Satisfaction Score (CSAT): A metric that measures customers' satisfaction with a specific interaction or overall experience.
• Net Promoter Score (NPS): A metric that gauges the likelihood for customers to recommend your brand to others.
• Customer Effort Score (CES): A metric that evaluates the ease of customer interactions, such as resolving an issue or making a purchase.
• Brand perception: Assessing how customers perceive your brand's image, reputation, and values.

2. Interaction metrics

Interaction metrics focus on measuring specific touchpoints and channels through which customers engage with your brand. These metrics provide insights into the quality and effectiveness of customer interactions. Examples of interaction metrics include:

• First Contact Resolution (FCR): Measures the percentage of customer inquiries or issues resolved during the first interaction.
• Average Handling Time (AHT): Measures the average time taken to handle customer interactions.
• Response time: Measures the time it takes to respond to customer queries or requests.
• Channel-specific metrics: Metrics tailored to specific channels, such as email response rate, call abandonment rate, or website conversion rate.

3. Outcome metrics

Outcome metrics focus on measuring the impact of customer experiences on business outcomes and goals. These metrics help determine the tangible benefits of delivering exceptional CX. Examples of outcome metrics include:

• Customer Lifetime Value (CLV): Measures the total value a customer brings to your business over their entire relationship with your company.
• Customer churn rate: Measures the rate at which customers stop doing business with your company.
• Revenue or sales growth: Measures the increase in revenue or sales directly attributed to positive customer experiences.
• Customer retention rate: Measures the percentage of customers retained over a specific period.

By categorizing CX metrics into these buckets, you can gain a comprehensive understanding of the customer experience, evaluate specific touchpoints, and track the impact on business outcomes. Remember to choose metrics that align with your business goals and tailor them to your organization's industry and unique customer journey.

Tackling obstacles for success

Below are some top challenges to tackle in order to achieve success with CX measurement:

• Low measurement maturity: Internal team structures and misaligned KPIs hinder CX measurement progress. Overcoming this requires a strong foundation and a data-driven culture.

• Data silos and fragmented systems: Scattered data across multiple platforms makes it challenging to gain a unified view of the customer journey. Breaking down silos and implementing integrated systems is crucial for obtaining valuable insights.
• Resistance to change: Implementing a CX measurement framework necessitates organizational alignment and a mindset shift. Clear communication, education, and showcasing the benefits can help overcome resistance.
• Lack of resources and expertise: Limited budgets, a shortage of skilled personnel, and inadequate tools hinder effective CX measurement. Prioritizing CX and allocating resources accordingly is essential.
• Incomplete or inaccurate data: Poor data quality leads to incorrect insights and misguided decision-making. It is vital to establish data governance practices to ensure accuracy and integrity is maintained.

• Scaling and sustaining CX measurement: Adapting measurement frameworks to accommodate growth, expanding capabilities, and aligning with evolving customer needs is key to long-term success.

By addressing these challenges, organizations can establish a robust CX measurement framework, driving improvements, informed decision-making, and an enhanced customer experience.

Staying ahead of the game

Here are some CX measurement trends to consider looking into:

• Omnichannel measurement: Measure CX across all touchpoints with comprehensive tools for a holistic view and seamless experiences.
• Emotional analytics: Capture customer emotions using facial recognition, sentiment analysis, and voice analytics for deeper insights and enhanced CX strategies.
• Real-time feedback: Gather immediate insights and take swift action with real-time feedback tools to address issues promptly and demonstrate customer centricity.
• AI and automation: Leverage AI and automation for advanced analysis of customer feedback, enabling personalized experiences at scale and gaining a competitive edge.

Final thoughts

By implementing an effective CX measurement framework, leveraging key metrics, and embracing the latest trends, you will be equipped to create remarkable customer experiences that drive business success. So, go ahead—measure, improve, and soar to new heights of CX excellence. Remember, the customer is the hero of your story, and your mission is to deliver experiences they'll never forget.


Authors:
Smita Challu Tulsani, Customer Strategy & Martech Practice Leader & Director, Akcelo Canada
Ursula Green, VP, CXO, Halmyre Strategies Inc.
Baijul Shukla, VP, Member Experience & Corporate Strategy, Ontario Society of Professional Engineers