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How to measure Customer Experience

Posted by KingEclient on 1 June, 2021

Firms that invest in enhancing customer experience are already leaping ahead of their competition. Reputations are at stake, the marketing paradigm is rapidly altering, and businesses that invest in improving customer experience are already leaping ahead of their competitors.


As a result, regardless of the product or service they provide, organizations must optimize their customer experience – because without customers, there is no business at all.


Measuring the customer experience is a difficult task. Most encounters have several touchpoints, sometimes across several media, with varying goals. How do you know what is and isn’t working?


To help you, here are the most effective methods for assessing Customer Experience and identifying opportunities for improvement in your products and services:



1 – Net Promoter Score

Customer feedback tool that measures client satisfaction and loyalty to a brand. NPS data is gathered through a scaled survey question and measured on a scale of -100 to +100.

NPS = % of Promoters – % of Detractors


2 – Customer Churn Rate

The percentage of customers who do not return to a company after purchasing both by not making a repeat purchase or canceling their service during a specific period. 

Churn Rate (%) = # of Lost Customers / # of Active Customers


3 – Customer Effort Score

Measured through a survey to determine the amunt of effort a customer needed to perform a task. It is usually measured on a defined number scale through a post-interaction survey. A score of 1 indicates low effort.

CES = % of Respondents Who Indicate Low Effort – % of Respondents Who Indicate High Effort


4 – Conversion Rate

The percentage of total visitors or prospective transactions who end up completing a sale.

Conversion Rate (%) = # of Completed Sales Transactions / Total # of Interactions Handled


5 – Customer Lifetime Value

The present value of the future clash flows or the value of business attributed to the customer during the company’s entire relationship.

CLV ($) = (Avg. Sale Price per Customer x Avg. # of Times Customer Buys per Month) / Monthly Customer Churn Rate


6 – Average Resolution Time

The average amount of interactions it takes between customer and company to resolve an issue.

ART = Sum of All Interactions for Total Resolved Issues – Total # of Resolved Issues


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