{"id":459337,"date":"2022-11-20T21:37:15","date_gmt":"2022-11-21T05:37:15","guid":{"rendered":"https:\/\/www.genesys.com\/blog\/post\/how-to-effectively-measure-customer-experience"},"modified":"2024-11-06T10:16:12","modified_gmt":"2024-11-06T18:16:12","slug":"how-to-effectively-measure-customer-experience","status":"publish","type":"blog","link":"https:\/\/www.genesys.com\/en-sg\/blog\/post\/how-to-effectively-measure-customer-experience","title":{"rendered":"How to Effectively Measure Customer Experience"},"content":{"rendered":"

[vc_section][vc_row][vc_column][vc_column_text]Customer experience (CX) is your organisation\u2019s primary differentiator. Customer expectations have evolved tremendously over the past few years. Yet how we measure customer experience hasn\u2019t kept up.<\/p>\n

Genesys partnered with Harvard Business Review (HBR) Analytic Services to create a new global survey of 438 senior executives worldwide. In the report, \u201cBeyond NPS: CX measurement reimagined<\/a>,\u201d 92% of surveyed respondents said being better able to measure the customer experience would help them deliver better business outcomes.<\/p>\n

Effectively measuring customer experience is a requirement for both customers and businesses to succeed. But it\u2019s a major challenge for most enterprises. Siloed data and a web of existing systems and platforms complicate things even more.<\/p>\n

In this blog, we\u2019ll discuss common ways to measure customer experience. And we\u2019ll look at how to use customer journeys to improve CX measurement and deliver the frictionless, empathetic experiences consumers desire.<\/p>\n

3 Ways to Measure Customer Experience<\/h2>\n

To measure customer experience, most CX professionals rely on metrics such as Net Promoter Score (NPS) and customer satisfaction (CSAT) scores to gauge performance. Though widely adopted, these metrics have limitations.<\/p>\n

A 2021 study predicted that more than 75% of organisations will have abandoned NPS<\/a> as a measure of success for customer service and support by 2025.<\/p>\n

You need an actionable way to measure customer experience. Improving customer experience measurement enables you to listen and learn from your customers so you can deliver the experiences they demand.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column width=”1\/2″][vc_single_image image=”451937″ css=”.vc_custom_1664832753873{margin-right: 1.5em !important;margin-bottom: 1.5em !important;}”][\/vc_column][vc_column width=”1\/2″][vc_column_text]<\/p>\n

Be everywhere your customers are<\/strong><\/h3>\n

Manage and optimise your customer journeys at scale[\/vc_column_text]

Learn more<\/a><\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1730916863257{margin-bottom: 1.5em !important;}”]According to Forrester, there are three types of CX metrics<\/a> you can use to understand how customer perception and behaviour impact business objectives:<\/p>\n
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  1. Perception Metrics<\/strong><\/li>\n<\/ol>\n

    These metrics relate to what your customers expect from their overall experience with your enterprise. The goal is to understand how customers feel about their experiences.<\/p>\n

    Many CX leaders rely on surveys and speech or text analytics to gauge customer sentiment. Voice of the Customer (VoC) programs are a standard way to capture their perception \u2014 and the metrics used often include satisfaction, ease and confidence.<\/p>\n

    The key is to measure your customer\u2019s satisfaction with the entire path they take to achieve a specific goal, rather than in aggregate or after a single interaction in a single touchpoint.<\/p>\n

    2. Interaction Metrics<\/strong><\/p>\n

    Interaction metrics look at what actually happens during a customer\u2019s path toward achieving their goal, such as paying a bill or transferring money between accounts. This data derives from your website, contact centre, and physical store or branch locations.<\/p>\n

    CX leaders can use interactions to understand how actions in different channels impact your customer\u2019s perception. For instance, does a long conversation with an agent cause customer effort or CSAT metrics to plummet?<\/p>\n

    Or are your customers happy the agent was thorough and resolved their issue? Perhaps long wait times actually frustrate customers more than issues with your product or service.<\/p>\n

    To improve interactions and overall experiences, consider internal initiatives that impact your customer\u2019s perception. This may include implementing a call back feature to mitigate long wait times or improving a FAQ page for customers troubleshooting product or service issues.<\/p>\n

    3. Outcome Metrics<\/strong><\/p>\n

    Outcome metrics measure the repercussions of your customer\u2019s perception and interactions. Ultimately, outcome metrics measure what your customers intend to do as a result of their experiences with your organisation.<\/p>\n

    This type of metric, such as NPS, number of service upgrades or products purchased, derives from surveys, financial data and, of course, customer behaviour data. To define these metrics, identify key business outcomes for each goal your customers want to achieve. This can include acquisition, cost reduction, increasing revenue per user and more.<\/p>\n

    The Problem with Traditional CX Measurement Approaches<\/h2>\n

    There are several key criticisms of traditional metrics like NPS that are completed after the conclusion of a sale or service interaction. They provide limited insight to the moments where loyalty was won or lost.<\/p>\n

    They don\u2019t often identify root causes of customer frustration. And they\u2019re more business-centric than people-centric. Plus, some 41% of surveyed executives say they can\u2019t explain why CX metrics go up or down.<\/p>\n

    One of the greatest opportunities identified in the HBR survey is being able to better understand the quality of experiences earlier in a customer journey. Just 28% of executives said their organisation has a very good understanding of customer satisfaction across all phases of a customer journey.<\/p>\n

    As the focus on traditional survey-based metrics would suggest, they\u2019re most competent in gathering post-interaction feedback. Moving to a customer journey-based approach is a key priority for 81% of the respondents. And nearly half said their organisation plans to increase investments in measuring customer experience.<\/p>\n

    How a Journey-Based Approach Advances Customer Experience Measurement<\/h2>\n

    Story time.<\/p>\n

    The Call Centre Analytics Manager at a leading internet service provider (ISP) regularly monitored metrics like first-contact resolution<\/a> (FCR), average handle time (AHT), call duration and more. She had a goal to decrease call duration to minimise costs.<\/p>\n

    But by shortening calls, customers didn\u2019t get the service they needed and actually required in-person assistance. The ISP had to send service technicians to help customers. Costs associated with truck rolls increased customer service costs by 10X.<\/p>\n

    When you measure customer experience metrics in a vacuum, you\u2019re likely to optimise the wrong things. But by analysing the entire customer support journey, the call centre manager realised that a majority of customers troubleshooting connectivity issues rely on an agent to help them.<\/p>\n

    For these journeys, taking the time to quickly diagnose and solve internet connectivity issues benefited the provider and their customers experiencing these problems.<\/p>\n

    Aligning your organisation around customer journeys is key to customer journey management<\/a>. This approach enables organisations to visualise, measure and optimise end-to-end customer journeys by connecting customer behaviour to CX and business outcomes.<\/p>\n

    Increasingly, leading enterprises are adopting a journey-based perspective to measure customer experience.<\/p>\n

    Customer Journeys Make CX Metrics Actionable<\/h2>\n

    When metrics like NPS or CSAT decline, most CX leaders don\u2019t know where to look first.<\/p>\n

    That’s the advantage of customer journeys. When using a journey-based approach like customer journey measurement, you\u2019ll know exactly where to look when your KPIs rise and fall.<\/p>\n

    Earlier, we mentioned that the most actionable way to measure customer satisfaction is by tracking that metric for each major customer goal:<\/p>\n