Customer Experience and top 5 Customer Experience Metrics

Customer Experience and top 5 Customer Experience Metrics
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What’s customer experience?

Customer Experience (CX) is the interaction between a potential or actual customer and a business. It begins when a client is made aware of the business and continues through the purchase process. CX also includes the time a customer uses a product, service, or other product for the first time.

While businesses may be able to convince customers to buy, it is essential to see the bigger picture. This could mean offering support to customers for years.

Is it worth the extra effort and money? It’s more expensive to acquire a new customer than to keep an existing one. 32% say they would abandon a brand they like after one bad experience.

To create memorable experiences for customers, listen to the below episode of “Duct Tape Marketing Podcast,” hosted by HubSpot Podcast Network.

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Do you need to measure all metrics?

No. The ones that are relevant to your business should be measured. You should never ask customers for feedback before you know what you will do with it.

Most companies have 2.5 customer experience-related KPIs. We recommend you know your business metrics (customer churn, retention, and CLV) and the relevant customer experience metrics for your business development. Find the metrics that make sense for your business. Companies are most successful when they only focus on one customer experience metric. Complexity doesn’t usually add value. A simple survey design and simple targets and metrics for follow-up help organizations concentrate on the things that matter: fixing problems and improving results.

Nate Jones, Director for Customer Support at Simple Nexus, identifies the problem businesses face: over-measuring. No matter what metrics you use, ensure they are predictive of the outcome you want to promote or avoid. Many businesses collect metrics just because they feel they should and don’t know how to extract value from them.


Top Customer Experience Metrics

1- Customer Effort Score

What does the Customer Effort Score say about you? What amount of effort must customers put into completing a task? This could include getting support requests handled to find the product/service they are looking for. This transactional metric measures how easily your customers find the product or service they need.

This is how CES can improve customer experience. The more seamless your customer experience is, the more likely customers will purchase from you again.

Your CES will show you which areas are smoother and where there are problems. This data can improve customer experience KPIs and make your services more user-friendly.

Customer Effort Score can be calculated using. Typically, after interacting with a customer, you would send out a survey asking about their experience. This survey will ask customers to rate their experience from low to high. Follow the distribution of scores and the average score to calculate your score.


2- Net Promoter Score (NPS)

The graph clearly shows that Nordic companies’ preferred customer experience metric is NPS. Globally, the same is true. Around two-thirds of all companies use it to determine their position concerning customer experience. NPS has gained popularity since 2003, the year that it was introduced. Now, most Fortune 500 companies, incl. Apple and other market leaders worldwide, including. Airbnb can benefit from this metric.

NPS is easy for customers to answer and for companies to track. NPS is only two questions long and provides the customer experience-related information your leadership requires for goal setting and bonuses. NPS is often used to rate brands, services, and products in general.

How do you calculate NPS?

  1. Calculate the percentage promotion among your customers
  2. Calculate the percentage of detractors
  3. Add the detractor percentage to the promoter percentage

Why use NPS?

Customers and companies will find it fast, easy, and simple. Open-text feedback allows us to dive in and see the whole picture. Seeing the NPS change can help you predict future revenue gains or losses. NPS score can also be used to measure word-of-mouth marketing strategies


3- CSAT (Customer Satisfaction Assessment)

It is essential to find out how satisfied customer’s are with your products and services. CSAT measures customer satisfaction scores by asking customers: “How satisfied are you with your products/services?” Respondents answer the question using a rating scale from 1 (very unhappy) to 5 (5 (very satisfied).

The percentage score is calculated using the highest rating (4 and 5 on this scale). 100% refers to total customer satisfaction, and 0% to total customer dissatisfaction. CSAT was developed from market research surveys. It is simple to understand and use and can provide valuable insight.

CSAT is an easy and effective customer experience metric that you can implement. It’s similar to the NPS in that it is easy and quick for customers to answer. This question is frequently asked by customers after a transaction or customer service ticket in order to assess the efficiency of the customer care department. CSAT is a great tool to gauge what customers think of you.


4- Customer Lifetime Value (CLV)

CLV (Customer Lifetime Value) forecasts the net profit attributed to all future customer relationships. CLV can be calculated as either a business value the customer brings to a company over the entire relationship or a value over time (e.g., a year, five years, or whatever is most appropriate for the company). CLV is often viewed as average. It might be simpler to calculate the entire CLV of a wedding planning firm (people don’t get married very often), but it is more practical to calculate the year CLV of a soda producer.


5- Average Resolution Time (ART)

The ART shows the average time it takes to resolve a customer’s problem. This metric will allow you to assess the efficiency of your support staff. This could be high or low, depending on the support query.

Customers like to resolve their problems immediately. Customers will be more satisfied if they can resolve their issues quickly.

Your company’s CSAT score can directly affect your average resolution time. You should pay attention to the reasons your customers call. If a common issue occurs with multiple customers, it could be a problem with your product. This will need to be addressed.

Also, consider the expectations of your customer. These might be stated in the Service Level Agreement you signed with them when they started using your service or based on your company’s values and mission statement.

Calculating ART requires you to take the time necessary to resolve all issues and divide it by the total number of support tickets or calls received over some time.

Time is taken to resolve the issue/# of tickets or calls = ART

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Companies will not succeed or fail solely based on the choice of customer experience metrics. It is crucial to driving improvement. The metrics you choose should be a score you can track to measure your progress.

Successful customer experience programs include a metric and feedback from a wide range of touchpoints. This helps identify key drivers and prioritize the actions that will impact the most.


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Ui UX design services

Our Ui UX design services help you improve your user’s experience and let them enjoy checking out your website or application. We help make your interfaces more user-friendly and efficient. UI/UX design services can also help you gather valuable feedback from customers to improve your product or service.


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