Some people still think that simply having a good product or service is enough to dominate the market. However, times have changed. Although the quality of your product/service will always matter, there’s another success factor you need to pay attention to customer experience. This is not just a wild guess. Actual studies confirm this.
User Experience in Numbers
When it comes to B2B companies, Adobe’s 2019 Digital Trends report showed that CX – or customer experience – presents the most exciting opportunity for business owners. Customer experience beat content, video, and social media marketing – that’s how much fate B2B marketers have in it.
Of course, B2B companies aren’t the only ones banking on it. The large companies are also starting to invest more in customer experience. According to the Temkin Group, corporations that earn more than $1 billion per year could earn an additional $700 million yearly if they started investing more in CX.
Furthermore, the same report states that CX investments have the potential to double your revenue within 3 years, regardless of the size of your business. So where’s all of this revenue coming from? Well, according to PWC, it comes straight from the customer’s wallets. Around 86% of consumers are willing to pay more money for good customer experience.
We can go on and on but you get the point – customer experience is a big deal in today’s business world. The question now on everyone’s mind is, how can you improve your customer experience? Does it even need improvement? How much time and money should you actually invest in it? Let’s dive into the subject and see what can you do to analyze and improve your CX.
Best Customer Experience Metrics
As the name says, customer experience is all about your customers. Luckily, the customer experience can be measured. Certain metrics showcase the progress of CX initiatives. These metrics can also help you pinpoint areas for improvement.
That way you have platforms such as Kanari that allow you to collect, analyze, and use CX data to improve your services, make smarter decisions, and most importantly, improve your bottom line.
Of course, there are gigabytes and gigabytes of data out there. Some people get overwhelmed by so much data. They don’t know where to start. If you’re scared by these thoughts, don’t worry, here are a few metrics you should keep an eye on:
1. NPS (Net Promoter Score)
The customer percentage that would recommend your business to their family and friends. When it comes to customer experience, this is perhaps the most widely used metric because it’s fairly accurate and simple to understand.
2. CRR (Customer Retention Rate)
This number shows you what percentage of your customers come back to your website after they make a purchase. A good customer experience entices people to come back to a website. This creates a strong customer base and allows you to save money on marketing and re-marketing efforts.
3. CES (Customer Effort Score)
The effort score shows the amount of work your customers have to do in order to interact with your company. It will help you determine certain friction points and discover ways to create a seamless customer experience.
4. CAC (Customer Acquisition Cost)
This metric is pretty self-explanatory. It shows you how much money you had to spend on marketing, optimization, research, etc. to get each new customer. Your goal, of course, is to find different ways to keep customer acquisition costs low.
5. CLV (Customer Lifetime Value)
CLV shows how much every individual customer is worth to your business over the course of their lifetime. This metric helps you see how much money and value you are getting out of your investments in customer acquisitions, targeting, and experience.
6. CSAT (Customer Satisfaction)
CSAT is only used for specific situations. For instance, you use this metric to see how satisfied is a customer with your customer service or call center. This particular metric is obtained directly from customers through a survey after the interaction with a company representative is over.
Getting Feedback Directly from the Customers
In addition to analyzing the metrics we listed above and using them to make changes, is there anything else you can do to improve the experience of your customers? You need to listen to what your customers have to say.
How can you do this? There are a couple of ways. For starters, there’s a chance a good percentage of your customers already left some comments on your website, on your social media, or app store reviews. Some people probably sent feedback via email.
Whatever the case may be, you need to go through all of those comments and look if any problem is mentioned multiple times. On the other hand, if you don’t have enough comments to get a clear picture of what your customers want, you can always conduct a survey.
Yes, customer feedback can be found on numerous channels. The most important thing is to act upon that feedback as soon as possible. Whether you’re aware of it or not, more than half of your customers already feel like you need to take action on their feedback.
Final Thoughts on Customer Experience
With so many companies competing mainly on customer experience, you need to start taking it more seriously if you want your business to stay ahead of the competitors. Once you start investing more time and money into customer experience, you’ll be able to start building a loyal customer base.
One thing is certain – if you want to make improvements on your CX you need to get to know your customers better than anyone. Collecting data, creating customer profiles, and examining customer behavior is a must. When it comes to customer analysis, bare no expenses.
Once you get to know your target audience, you’ll be able to use that knowledge to make the tweaks you need to make your customers feel right at home when doing business with you.