BenchmarkingMetrics

Metrics to Boost Customer Experience Strategy: 3 Ways

Customer experience (CX) is the involvement of a consumer with a brand or product, at all touchpoints by which a customer can interact with the organization.

In this article at Customer Think, Peter Fader explains that finding the right metrics to measure CX is a task that requires utmost attention and observation, apart from the analysis.

The Formula to Calculate CX

CX is measured through two dimensions including CX Quality and Customer Loyalty. CX Quality is calculated using ease, effectiveness, emotion while loyalty can be observed through NPS, enrichment, and retention. Here are three steps to measure CX to form resulting strategies:

  1. Maintain Heterogeneity of CX Metrics: Talk to the people crunching your CX metrics to find a way to manage the assorted makeup of the scores representing CX quality and customer loyalty. Know the distribution of scores from bad to best while avoiding over-simplified shortcuts. This will help you to zero in on the real situation with different customers, especially in the next step.
  2. Analyze CX Metrics: Using the detailed data observed from varying CX scores from the first step, plot values against other factors like customer happiness. Carefully consider the switching costs of your customers to make the CX metric more relevant. Use the switching costs while analyzing CX metrics as it measures another form of friction that your customers are experiencing.
  3. Deploy CX Tactics with Precision: Instead of engaging with customers usually and investing in broad CX initiatives, run targeted experiments to measure the effectiveness of your CX tactics. Focus your CX strategy on the higher-value hostiles based on Customer Lifetime Value (CLV) to find ways to move them positively on the CX scale. This means the low CX scores are tipping the scales toward the negative when aggregated with higher CX metrics.

Click on the following link to read the original article: https://customerthink.com/cx-metrics-arent-customer-centric-but-should-be-learn-how/

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