DYK # 2: Did you know that not all CX metrics are equal?

It’s time for our second “Did you know…?” post! Today, we’ll dive into “Did you know that not all CX metrics are equal”? In the world of CX, we typically use 3 key metrics to understand how a customer perceives or feels about something:

• NPS = Net Promoter Score,

• CSAT = Customer Satisfaction, and

• CES = Customer Effort Score.

I’ve seen many organizations choosing a metric and using it for all their customer surveys, that’s in particular the case for NPS. Unfortunately, it’s not quite that simple. When we want to understand how a customer experienced an interaction with your brand, understand the relationship they have with you, or get feedback on a particular product, journey, or service, etc., it’s important to start with the outcome in mind, not the metric.

In the last “Did you know…?”, we looked at different types of surveys and when best to use which one. It’s exactly the same for metrics. Based on your desired outcome and the type of survey you choose for the job, you decide on the right metric to help you measure and track performance.

Let’s dive into them:

NPS (Net Promoter Score):

• What is NPS: NPS measures long-term loyalty and determines which customers are brand ambassadors. It is a valuable measure on a strategic level as it provides an overall metric to track and it allows us to monitor change. NPS is a benchmark measure companies use to evaluate and improve customer loyalty. NPS is different from CSAT and CES, in that it measures a customer's overall sentiment about a brand, versus their perception of a singular interaction.

• Actual Question: How likely are you to recommend XYZ brand to a friend/colleague/family member?

• Ideal use case: Benchmark/ Brand and Relationship tracking. Due to its standardized and rigid nature and wide use it’s a great metric for companies to compare themselves against the competition.
  

CSAT (Customer Satisfaction):

• What is CSAT: CSAT is a commonly-used key performance indicator used to track how satisfied customers are with a service, product, staff interaction, website interaction, etc. It’s an easily understood and adaptable measure that fits a large variety of use cases.

• Actual Question: How satisfied were you with ABC (e.g. your recent branch visit)?

• Ideal use case: CSAT is the most versatile of all 3 metrics and basically can be used in any survey type. You can word it in a way that fits into a holistic Relationship Survey or a more specific Journey or Interaction Survey.

CES (Customer Effort Score):

• What is CES: In simple terms, customer effort refers to how hard a customer has to try to get an issue resolved or get help in general. CES is a metric that quantifies the ease of an interaction between a customer and a company. CES analysis can pinpoint where improvements are needed, and track outcomes to assess the impact of your actions. CES drives loyalty by minimizing effort and optimizing the customer experience.

• Actual Question: How easy/difficult was it to ABC (e.g. get your query resolved)?

• Ideal use case: Interaction and Journey Surveys. It can be adapted as an overall Relationship Survey KPI as well though.

A word on tNPS…

Strictly speaking, NPS isn’t actually a perception metric, but rather an outcome metric. However, it’s often incorrectly used as a perception metric, in the sense of “rate your experience” when used in Interaction Surveys (tNPS = touchpoint or transactional NPS).

Many organizations use tNPS to track and measure customer feedback after a specific interaction. We’re asking customers to recommend a brand, based on a single interaction. While this provides us with customer feedback and a number to measure and track (tNPS), it is a somewhat flawed approach as the likelihood to recommend a brand isn’t based on a single interaction.

Tip: avoid being a “NPS”-Shop as we call it and focus on the right metric for the job instead of trying to squeeze NPS into any type of survey and context. NPS is a long-term brand health score and was never designed to measure a single interaction.

Summary:

Ask yourself, “What is it that I’m trying to find out”?, “What type of information is useful for me to know how to act on the feedback?”, “Who’s going to be using the insights and how?”. Based on that, choose the right metric for the job.

If you’d like to learn more about measurement and when best to use which metric to guarantee the success of your CX program, get in touch. We offer Lunch & Learn sessions on the topic of CX metrics and you get the pack afterwards as well! How good is that 🤩

#CX #customerexperience #VoC #customercentricity #data #insights #CXmeasurement #metrics #CSAT #CES #NPS #tNPS