What Are the Top Customer Experience KPIs?

Customer experience KPIs to track in 2023

What are the Top Customer Experience KPIs - CX Today News
Contact CentreInsights

Published: June 29, 2023

Rebekah Carter

Monitoring the right customer experience KPIs is crucial for any contact center. Satisfied, loyal, and happy customers are the lifeblood of any successful business.

Companies prioritizing exceptional customer experience can achieve an 80% increase in revenue. Plus, 73% of customers say CX is the factor they consider most before buying something from a brand.

Monitoring the right customer experience KPIs in your contact center is how you determine ways to improve customer loyalty and retention. It’s also how leadership teams can track their audience’s perception of their brand.

Today, we’re going to share some of the top customer experience KPIs every business should be tracking.

What are Customer Experience KPIs?

Customer experience KPIs, or “Key Performance Indicators,” are the metrics companies track to monitor customer experience performance.

Unlike other contact center KPIs, they focus less on efficiency and employee performance and more on understanding how customers feel and think about a brand.

Tracking customer experience KPIs provides business leaders valuable insight into how effectively they solve customer problems and address their specific needs. Companies can use these KPIs to determine customer loyalty and retention rates by examining how many customers return to a business after purchasing.

Customer experience KPIs also help companies set improvement benchmarks and determine problem areas within the CX strategy.

The Top Customer Experience KPIs to Track Today

Today’s CCaaS platforms and other contact center tools, CRMs, and even WFO products all provide access to analytical tools for tracking crucial KPIs.

The biggest challenge for business leaders is figuring out which metrics to focus on to reduce operational costs and increase service performance.

Here are the top customer experience KPIs worth monitoring today.

1.      Net Promoter Score (NPS)

Net Promoter Score is a valuable KPI for tracking customer loyalty and satisfaction. It looks at how likely your customers would be to refer your business to a friend or another customer.

Calculating NPS is simple enough. It requires companies to ask their customers to rate on a scale of 0 to 10 how likely they would be to recommend them. After receiving responses through automated tools or surveys, companies can then calculate their NPS score with categorization.

Scores of 0 to 6 are rated as “detractors” while scores of 7 and 8 are “passives.” Scores 9 and 10 indicate a “promoter” or an advocate for the brand.

To calculate NPS, you’ll subtract the detractor percentage of customers from the promoter percentage to get your final score. Some tools can help companies manage and monitor this KPI automatically, which can integrate with CRM and contact center tools.

2.      Customer Satisfaction (CSAT)

Often regarded as one of the most critical customer experience KPIs, the customer satisfaction score measures how happy customers are with a product or service. Similar to calculating NPS, companies can assess their CSAT score using surveys and tools for customer feedback.

While there are many ways to rate customer satisfaction scores, most companies simply ask customers to rate their satisfaction on a scale of 1-5.

To calculate the final CSAT score, organizations can add up all of their ratings with a score of 4 or above, and calculate the result by the number of responses, then multiply by 100.

Automation tools and AI solutions can ask these questions automatically throughout the customer journey, reducing some of the work agents need to do during a call.

3.      Customer Effort Score (CES)

Commonly used in the voice of customer evaluations, customer effort score is one of the most popular customer experience KPIs. It looks at the simplicity of accessing service from a customer’s perspective. CES scores are usually acquired through surveys and automated questions.

After interacting with a customer, an agent can ask them to rate how easy it was for them to solve their problem on a scale of 1 to 5 or 1 to 7.

Companies need their customer effort score to be as high as possible to ensure customers get a good experience with the company. A low effort score could mean customers find support challenging to access or need help to use a website.

4.      Customer Churn and Retention

One of the easiest ways to determine how satisfied customers are with a business is to examine how often they continue interacting with the company. The customer churn rate is the percentage of customers who stop buying services or products from a company.

Alternatively, customer retention looks at how many customers you keep over time. The goal of every business should be to reduce churn and increase retention levels consistently. After all, it’s more expensive and time-consuming to attract new customers than retain existing ones.

Retained customers are also five times more likely to purchase products again, five times more likely to forgive mistakes, seven times more likely to try a new product, and four times more likely to refer.

The easiest way to calculate the churn rate is to determine how many customers cancel their subscriptions or services within a specific period. You can also calculate retention rate by looking at the number of repeat customers who continue to purchase products from a business over a certain period.

5.      Average Resolution Time (ART)

Average Resolution Time, or “ART,” is one of the most critical customer experience metrics to track. Customers are more likely to be satisfied with a company or service if they get rapid responses to their questions and quick solutions.

Average Resolution Time looks at the average time it takes a customer support or success team to resolve a support request. Usually, the rate is calculated by dividing the time it takes to resolve every support request by the number of tickets resolved within the same period.

A low average resolution time indicates you have a responsive and effective customer service team, which leads to happy customers. A higher ART means employees are less efficient, which could lead to dissatisfied customers and higher operational costs.

6.      First Response Time

Another of the most vital customer experience KPIs, first response time, looks at how quickly the customer service team responds to a request from a customer. Customers don’t want to wait days or weeks to get an answer from an agent.

First Response Time can be measured either in days or hours, depending on the customer service channels you’re looking at. It’s calculated by adding up all of the first response times and dividing the result by the number of issues the team had to address.

A poor first response time indicates a business needs to hire additional employees, outsource some customer service requirements, or invest in making their teams more efficient. Optimizing CCaaS platforms with automation and AI can help to improve first response times.

7.      Customer Health Score

Customer Health Score is slightly more complex than most customer experience KPIs covered here. It’s designed to help companies understand the likelihood of customers staying with a company, churning, or advocating for a brand.

The score reveals some of the most satisfied customers in a company’s audience and opportunities for expansion and improvement. Companies need to segment their customers into different groups to calculate customer health scores and examine factors influencing experience.

For instance, you might look at the number of open support tickets, how many customers are using specific service channels, and how long it takes to resolve a problem. You’ll then assign an impact score to each action to calculate the final score for each segment.

8.      Conversion Rate

Conversion rate isn’t just one of the top customer experience KPIs. It’s a metric virtually every business needs to monitor to remain successful. The metric looks at the ratio of people actively doing something with your business. The action could be contacting your sales team or purchasing a product.

With conversion rate, you can assess how effective your marketing and sales efforts are and how well customers respond to offers. If your conversion rate is low, this indicates you could be either targeting the wrong audience or providing ineffective solutions.

Calculating conversion rate means taking the number of conversions from a campaign and dividing it by the number of people interacting with it in the same period. You can also go a step further with this metric, by calculating the lifetime value of the customer, based on their recurring purchases and conversions.

Measuring the Right Customer Experience KPIs

Businesses can track dozens of metrics and KPIs in the CX cycle. However, not every KPI will be essential to driving the progress of a business.

The more metrics you need to track for your customer service team, the easier it can be to get overwhelmed by data. Choosing the right customer experience KPIs ensure you can collect insights on the most valuable trends supporting your company’s growth.

The best way to measure these KPIs is with the right contact center tools. Many CCaaS platforms have analytics platforms for tracking KPIs. Plus, there are dedicated tools available for KPI analysis and reporting.

Make sure you’re taking advantage of the right customer experience KPIs to improve the performance of your contact center.

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