Put yourself in the shoes of your customers. How do you feel when you have the best customer experience and the worst? That is how your customers feel when they interact with your business. Having a positive experience as a customer is essential for a successful business because only a satisfied customer is also loyal. Loyal customers market the business for you, so you should rethink the quality of the experience you provide to your customers.
The best way to improve customer experience (CX) and the business, in general, is to pay attention to the analytics. This article will teach you about the most important metrics and their benefits.
Net Promoter Score
To get insight into customer loyalty, brands resort to Net Promoter Score (NPS). It is a common market research metric mostly in the form of a survey. It usually contains only one question: “How likely are you to recommend the brand, products, or services to a friend, family member, or colleague?”. The users or customers rate the likelihood on a scale from 1 to 10, the former being the least satisfied and the latter, the most.
You can use a tool or a simple calculator to measure the NPS. The higher the score is, the better your brand awareness is. As a result, you have no problems retaining customers and attracting new ones.
Social Media Engagement
Marketers and social media managers monitor engagement on the platforms through many metrics. It shows if and how much users interact with the brand on social media. Although there are too many metrics for measuring engagement, most marketers rely on well-known ones such as comments, reactions, shares, and likes.
Monitoring these metrics is crucial for the success of any marketing strategy. If users aren’t reacting to your content or talking about it on social media, it is time to adjust the implemented strategy. Therefore, tools like HootSuite, SproutSocial, and Google Analytics should be a part of your everyday marketing activities.
Customer Lifetime Value
Customers are at the core of any business. The more time they spend satisfied with the company, the more loyal they become. Companies such as American Express and Costco have recognized the importance of using the Customer Lifetime Value (CLV) metrics.
This metric helps entrepreneurs understand how valuable customers are throughout their relationship with the brand. It doesn’t include only the financial aspect, but it also provides great insight into other aspects. For example, how they interact with the business and whether or not they would like to continue using the brand’s products or services. When you start analyzing the results, you will be able to make informed decisions about new customers and the quality of their experience.
Attrition Rate
Every day, new businesses and brands emerge while customer habits and demands continue to evolve. To run a profitable business, you need to know why some customers replace you with your competitors. Churn or attrition rate helps business owners determine which type of customers leaves and why. High churn rates can cost the business too much and make it lose revenue.
While you can use tools and techniques to calculate the rate, most owners prefer doing it the old-fashioned way. They take the number of customers who broke off the relationship with the business and divide it by the total number of customers they had in a given period. The rate varies from industry to industry.
Customer Effort Score
Customers don’t shy away from expressing their concerns or lodging complaints if they aren’t satisfied with the service or product. If it takes too long for customers to get a reply, return a product, or resolve a problem, it is highly unlikely they will be loyal to the brand.
The Customer Effort Score (CES) shows how much time and effort the customer has to put in to resolve their problem. The metric is the result of the survey where customers have to rate their interaction with the business. Based on the results of the survey, you can pinpoint the exact fields that require improvements. As a result, you will be able to enjoy high customer loyalty and the customers’ valuable customer experience.
Conclusion
The tool you must use is customer experience analytics. By looking at the data, you can improve the quality of service your business provides and make better decisions about your products and services. The metrics covered in this article will help you understand how your business is doing and what needs to be done to improve the bottom line.
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