Customer Experience is king in the digital economy. That's why understanding and measuring customer satisfaction is crucial for long-term success.

But how do you measure customer satisfaction? 

Using customer experience KPIs. KPIs are valuable metrics that provide your business with valuable insights to grow your business. These metrics go beyond traditional sales figures and revenue by focusing on quality of experience. 

 As a result, by consistently monitoring and adapting to these metrics, organizations can foster positive customer relationships, drive brand loyalty, and, in turn, achieve sustainable growth

Key Takeaways

By the end of this blog, you will have the following takeaways 

1. Understand 12 KPIs for customer experience like NPS, CSAT, etc
2. Understand how to calculate these customer experience KPIs
3. Learn the strategies to improve the customer experience KPIs
4. Learn how Worknet.ai helps you to improve the KPIs using Artificial Intelligence. 

Top 12 Customer Experience KPIs: Measure & Improve

1.Net Promoter Score (NPS)

Net Promoter Score tells about overall customer experience quality based on your existing customers’ likelihood to recommend your product, service, or organization. Getting NPS mixed with CSAT is easy, but they are different. CSAT only worries about customer satisfaction, whereas NPS tells about overall satisfaction. 

Why Calculate Your NPS? 

As a business, you will need to understand the sentiments of your customers to understand your customer experience and improve them. Happy customers show high brand loyalty and high customer satisfaction. 

To calculate NPS, use the formula below: 

Total % of promoters  – total % of detractors = net promoter score

Here's an example of formula usage - 

Total number of people who recommend your brand - total amount of those who don't = net promoter score. So, 90% of your customers recommend your brand to others, whereas 5% don't. So, the NPS score will be: 

90% promoters – 5% detractors = 85 is your NPS Score.

2.Customer satisfaction score (CSAT)

Customer satisfaction score tells you about the level of customer satisfaction. Higher CSAT scores tell that customers are delighted with your products or services. A higher CSAT score also translates to better customer retention. 

You can calculate the CSAT score:

# of satisfied respondents (rated you a 4 or 5) / # of total survey respondents x 100 = % of satisfied customers

Why Calculate CSAT Scores?

CSAT scores are important as they help measure customer sentiment and monitor their satisfaction levels without your brand. Moreover, it also helps you make data-driven decisions that influence sales and overall profit. 

Interested in enhancing your customer success efforts? Check out our in-depth analysis on "Customer Success Automation" and its benefits.

3.Customer Effort Score (CES)

CES is a metric that measures the amount of effort your customers put into interacting with your business. For example, how much effort does your product or service need?  If finding an answer to a simple question makes them go through a long list of questions on a self-help database, then surely, they won't be happy. 

CES is popular with the HBR article published in 2010. It highlights a major point - the easy way to get customer loyalty was not to surprise or wow them. But just make their tasks easier.

To calculate the customer effort score, use the formula below: 

(Total number of "agree" responses (ratings of 5, 6, or 7) / Total number of responses) × 100

The CES score varies between 0 and 100. The CES score is the total number of customers who agree about an easy experience divided by the total number of responses received. For example, if 70 out of 100 customers rated you 5, 6, or 7 on a scale of 0 to 7 then CES scores 70. 

Why Calculate CES Scores?

Customer effort score measures customer efforts so you can reduce friction and provide them with easier solutions. Because in the end, your customers just want to solve their problem in the most convenient and fastest way possible. CES scores help you limit negative word of mouth, reduce customer service costs, and improve user experience. 

The Complete Guide to Customer Interaction Management

4.Customer churn rate

Customer churn rate is a metric that calculates the percentage of customers who cancel your services during a given period, such as a month or year. 

To calculate the customer churn rate, use the formula below: 

(Lost Customers ÷ Total Customers at the Start of the period) x 100

For example, suppose your business acquired 500 customers at the beginning of the month and lost 50 customers by the end, you would divide 50 by 500. The answer is 0.10. Then multiple 0.10 by 100, resulting in a 10% monthly churn rate.

Suggestion: Master key Customer Experience terms Make smarter decisions and optimize your CX efforts for better results.

Why Calculate Customer Churn Rate Score?

Churn rate is essential to calculate especially for SaaS or subscription-based products as high churn will decrease your profits or revenue since the customer does not stick around for a long time. 

Boost your team's efficiency and resolution rates with Worknet's AI-powered customer support.Book a Demo

5.Customer retention rate

Customer retention rate is a metric that calculates the rate at which customers stay with a business within a specific period. The higher the retention rate, the better the success. 

To calculate your customer retention rate (CRR) you can use the following simple formula involving the customers you have at the start (S), at the end (E), and customers acquired during the period you're measuring (N).

To calculate the customer retention rate, use the formula below: 

CRR = ((E-N)/S) x 100.

Astro's example of calculating your CRR:

You have 130 customers at the start of a month. In that month, you lose 9 and gain 23 new customers.

Number of customers at end of period = 144

Number of customers at the start of period = 130

Why Calculate Customer Retention Rate?

The customer retention rate is important because it tells how many customers you can retain over the period. It's often much cheaper to keep existing customers than to acquire new ones.  The long cycles to acquire the trust of new customers and getting them to pay costs a higher effort than providing customer service to existing ones. 

6.Customer Lifetime Value (CLV)

Customer lifetime value is a metric that calculates the total profit that a business can generate from the customer throughout their cycle. 

To calculate the customer lifetime value, use the formula below: 

CLV = customer value X average customer lifespan.

Why Calculate Customer Lifetime Value Score?

It's good to calculate CLV from an investment point of view because if you are spending more than what the customer will bring you in an entire relationship, then the customer is not profitable and you must change the strategy. Moreover, identifying high-value customers can help you focus on improving your efforts in their direction. 

Also Read: How To Use AI in Customer Experience with Worknet?

7.Cart Abandonment Rate

To calculate the cart abandonment rate, use the formula below: 

1−(Number of completed purchases/Number of shopping carts opened)×100

For example, If a business recorded 100 completed purchases and 800 shopping carts were opened, the cart abandonment rate would be  1−12.5%=87.5%​​.

Why Calculate Cart Abandonment Rate Score?

Calculating the Cart Abandonment Rate is crucial because it provides insights into potential issues in the purchasing process. A high abandonment rate can indicate problems such as poor user experience, slow page load times, high shipping costs, or complicated checkout processes. Understanding and analyzing this rate helps businesses identify and address these issues, ultimately improving the customer experience, increasing sales conversions, and recovering potentially lost revenue.

Boost your team's efficiency and resolution rates with Worknet's AI-powered customer support. Book a Demo

8.Average resolution time

Average resolution time (ART) metric tracks the average time taken to resolve customer queries.  It's an important metric showing how efficiently your support team can handle customer concerns. 

To calculate the average resolution time, use the formula below: 

Average Resolution Time (ART) = Total resolution time/ total number of customer conversations

Why Calculate the Average Resolution Time?

Higher average resolution time points towards an underlying concern that needs resolution as soon as possible. It indicates that either your support team is lagging and needs additional support, or there is no coordination between customers and the support team. For example, suppose a customer has some query, and the customer support agent does not have the resources or knowledge to help the customer. 

9.Upsell rate

The upsell rate is a metric that measures the total amount of a company’s revenue made from upselling products or services. 

To calculate the upsell rate, use the formula below: 

Upsell Rate (%) = Upsell Revenue ÷ Total Revenue

Why Calculate Upsell Rate Score?

A higher upsell rate directly contributes to increased revenue. Since upselling often involves higher-priced products or services with better profit margins, it can significantly improve a company's overall profitability.

10.Net emotion score

Net Emotional Score is a metric that shows the emotional value that your business provides to customers. It measures the balance between positive and negative emotions that customers feel about their experience with an organization.

To calculate the net emotion score, use the formula below: 

First identify and average the positive emotions (such as Happy, Pleased, Trusting, and Valued) and then subtract the average of the negative emotions (like Dissatisfied, Frustrated, Disappointed, Irritated).

Why Calculate Net Emotion Score?

Calculating the NEV is crucial because it provides insights into the emotional aspects of the customer experience. This understanding is essential because over half of the customer experience can be emotional, occurring both at a conscious and subconscious level. These emotional reactions take place throughout the customer's journey and can greatly influence their loyalty and retention. By focusing on creating more positive emotions, organizations can enhance customer loyalty, increase satisfaction, and ultimately drive business growth.

11.Customer Health Score

Customer health score is a metric that digital companies use to measure the risk of customer churn. This metric helps you assess how healthy your relationship with customers is. It's also a helpful metric to identify candidates for upselling. However, there's no set formula to calculate customer health scores, and it entirely depends on the type of business. 

To calculate the customer health score, use the formula below: 

Customer health score = total action value #1 + total action value #2 + total action value #3, etc

Why Calculate Customer Health Score?

Tracking customer health scores is important as you can monitor the progress of customer success programs and make adjustments. This way you can reduce customer churn, increase sales, and gain higher reputations, as satisfied customers are generally happy to help you build a high reputation.

Also Read: The Complete Guide to Generative AI for Customer Experience

12.Conversion rate

Conversion rate is a metric derived by taking the number of conversions and dividing that by the number of total ad interactions that can be tracked to a conversion during the same period.

To calculate the conversion rate, use the formula below: 

Conversions / Visits* = Conversion Rate

Why Calculate Conversion Rate?

Conversion rate is significant in digital products as it tells how many people are actually converting from visitors to paid customers. A higher conversion rate indicates that customers are convinced about your product. 

Boost your team's efficiency and resolution rates with Worknet's AI-powered customer support.Book a Demo

10 Strategies to Improve KPIs for Customer Experience

1.Deliver excellent customer service

There's no excuse you can give for bad customer service. With artificial intelligence at our fingertips at a fraction of the cost, good customer service must be the norm. By providing excellent customer service, you keep your customers happy and make them feel valued, which improves KPIs like CSAT and net emotional value. 

So, how do you provide exceptional customer service? Well, Worknet Copilot AI helps you here. With our tool, your customer support service agents have every information related to customers available. This means they can easily discuss probable solutions with your users and troubleshoot issues without further help. 

2.Use Artificial Intelligence

Although artificial intelligence cannot replace human workers fully, it can fasten the entire business process through automation. For example, suppose you are a B2B CRM platform, and your client is facing a downtime issue.

Must Read: How to use the power of chatGPT for customer support

3.Measure metrics and track ROI

Metrics are important to track because they show the areas where you are lacking. To measure these metrics, you can engage in conversations with customers and gain deep insights that software alone cannot provide. Measuring customer experience metrics also keeps your team accountable and ensures they meet the monthly targets. When targets are not met, you must evaluate where you are lacking.  With Worknet.ai, we have a Slack Analytics Dashboard that helps track critical metrics for your customer support teams in one place.

4.Go Omnichannel

Customers today demand a seamless experience across many channels. That means you have to be available where your customers are. Research by Genesys shows that 83% of customers will love the option to move from one channel to another. However, half the business does not support omni-channel interaction, and that's where the opportunity lies!

5.Have a crisis management plan

The crisis will happen in the business world. You cannot avoid them but navigate them without hurting your business with a well-planned crisis management strategy. 

The best way to manage your crisis is by understanding your customers. If you know your customers well, you can solve their problems much more quickly than when you don't know them. Even in a crisis, if you show them support in solving the problem, you can improve your customer KPIs.

 See the difference AI can make! Schedule a personalized demo of Worknet and its impact on your KPIs.Book a Demo 

6. Focus On Customer Support Agent Training

Despite having so much automation available today, your customer support agents will play a key role in supporting your customers. This means you should be training your support agents to handle the customers easily and remove any objections they might have. This requires training. 

7. Don't Ignore Bad Reviews

Bad reviews are a boon in disguise. No business would like to receive bad reviews, but that's not how things work in the real world. You cannot make every customer happy, but you can exploit this opportunity. Often, bad reviews will highlight a significant problem in a product or service that's worth improving. Seeing a negative review online may be troubling, but your brand’s response can mitigate damage and potentially improve customer loyalty. 

8. Take Customer Feedback Seriously

Sure, many businesses collect feedback, but not many take it seriously. After all, talk is cheap. You can send surveys asking for feedback, respond to negative comments, and so on. But if you don't take action on them, no amount of surveys will improve your customer experience metrics. As per McKinsey's report, 70% of the customer’s journey is based on how the customer feels they are being treated. So if your customer feels that their feedback is not valuable or put to use, they will leave sooner or later.

9.  Personalization

Personalization enhances customer satisfaction and loyalty. About 76% of consumers expect personalized interactions and the same percentage express frustration when this expectation is not met. By personalizing your customer experience, you can significantly reduce customer churn rate and increase the likelihood of conversion rates. 

10. Customer Journey Mapping

Customer journey mapping involves creating a visual representation of the steps a customer goes through when interacting with a company. This strategy helps in understanding and enhancing the customer experience at each touchpoint. Mapping the customer journey provides a comprehensive view of customer interactions and experiences. This understanding can lead to more effective personalization, as companies can tailor their interactions based on specific stages of the customer journey.

Benefits of Using Worknet for Improving Customer Experience KPIs

Improving customer experience KPIs need a proper tool set. Worknet.ai provides you with this tool set. Here's how we help you improve the KPIs

1. Omnichannel Support

Worknet.ai ecosystem focuses on providing seamless interaction across several channels like social media, emails, and Slack messaging. This omnichannel ensures that all your customer interactions are linked and thus reduces the need for customers to repeat information. It can thus lead to a higher NPS score as queries are getting addressed across major channels where your customers might be present. 

2. AI Copilot for Customer Support

AI Copilot is an automated customer support tool that suggests responses based on past conversations. This helps your business provide accurate and timely responses to your users. Features like ticket deflection, sentiment and summary analysis, and intelligent tagging contribute to faster issue resolution and reduced workload on customer support teams. Since customer queries are resolved quickly, it can lead to a higher conversion rate and low churn rate. 

3. Bulk Messaging and Team Inbox

We also have bulk messaging tools and team inbox organization to enhance the productivity of the customer support team. This tool allows them to broadcast a single message across multiple channels and reduce their workload. 

4. Data-Driven Insights

With our AI Customer Support software, you can track topic trends, question volume, and other key metrics that help customer support teams make data-driven decisions and allocate resources effectively. This can improve customer satisfaction and better management of customer support resources.

Conclusion 

Customer experience KPIs serve as quantifiable measures that enable you to understand how effectively you achieve key business objectives. By setting clear targets and regularly reviewing KPIs, you can hold teams and individuals accountable for their performance. This can foster a culture of responsibility and continuous improvement.

 See the difference AI can make! Schedule a personalized demo of Worknet and its impact on your KPIs.Book a Demo