Many companies focus on measuring CX at a short-term project level rather than taking a longer-term strategic view. It’s important that companies find a way to measure CX that considers the overall business benefits.
Is NPS the most effective way?
NPS is one of the main measures of CX, but it is only one aspect. It tells you that customers would recommend you, but it doesn’t tell you why. It can also vary quite considerably based on when you use it and which customers you survey.
Some other measurements tools include increased sales, churn reduction, lifetime value, improved costs to serve, and reduction in acquisition costs driven by advocacy.
There is no silver bullet in measurement of CX.
Each company needs to select the right mix of measurements for its own circumstances. It’s all about what’s most important to the company and what’s most important to its customers. CX measurement shouldn’t just tell you what you’ve done, it should also be able to tell you what you should be doing. Your metrics must inform and drive actions to improve your CX deliver.
What is the effective way to measure CX?
We use The CX Framework to measure CX Excellence. The CX Framework is made up of six Emotional Drivers that enable companies to build emotional bonds with customers.
These bonds create deeper relationships between the customer and the company. This ultimately leads to an outcome of advocacy and growth.
The CX Framework is based on thousands of surveys and interviews with customers of many different companies to understand how they felt when they interacted with the company.
5 Things to Consider for Effective Measurement
If you are using NPS as a key CX metrics look at how you help to build and reinforce the story with other metrics.
Much of the richest data from NPS comes from the verbatim. Direct customer quotes can be extremely powerful so use them to build your story for CX investment.
Build your CX metrics dashboard using business metrics (sales, churn, retention, etc), operational metrics (first call resolution, level of returns, etc), customer metrics (NPS, Emotional Drivers, etc), and employee metrics (satisfaction, engagement, etc.
Ensure your metrics drive action by reviewing, discussing, and identifying gaps with a cross-functional CX task force.
Use metrics to back up your request for investment to your leadership team. Here are some strong arguments to help you do this.
The CX Company guide, support and mentor organisations around the globe to turn CX Strategy into action. We offer a range of services including CX audits, customer journey mapping, CX education programmes, internal communication design, and customised CX video design to engage your team and empower them to deliver CX Excellence.
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Note: The insights and actions shared in this blog post are taken from our latest CX symposium roundtable event where global CX leaders shared their thoughts on some of the key issues they face. All of the key ideas and insights have been published in our latest interactive E-Book: Inside the minds of global CX leaders – Turning best practice CX into immediate results.