What are the best metrics for measuring CX innovation effectiveness?

CSAT is the single most overrated yet the most widely used experience metric that exists. It's easy to distribute and capture post-transaction numeric responses - typically a set-it-and-forget-it survey sent from the ticketing system. For this very reason, more often than not, CSAT's a ripe watermelon - bright green on the outside but red on the inside. It's only sent to those who consume the service, completely overlooking those who've given up on the service. It yields little actionable data. And when I poll those who use CSAT to measure their customers' experience, most don't believe their own results! Word on the street sentiment rarely aligns to CSAT scores reported. Use it at your own risk; report it with a HUGE grain of salt.

For me the optimal method for gauging customer experience (CX) is through assessing customer lifetime value. Satisfied customers often evolve into brand advocates and actively promote the brand. This positive customer engagement is further evident in the brand's retention rates and customer loyalty.

Customer Satisfaction (CSAT) scores, Net Promoter Score (NPS), Customer Effort Score (CES), and Return on Investment (ROI) specifically for CX efforts are some important metrics for assessing the efficacy of Customer Experience (CX) innovations. Furthermore, monitoring customer retention rates and qualitative feedback via surveys or sentiment analysis can provide information about how CX improvements affect customer engagement and loyalty.

Here is the point which should definitely be taken into account about CSAT. Many organizations measure CSAT on transactional level, specifically after providing direct service/support to customer and ask to measure the interaction. This is a good way of understanding how things go overall, as customers usually evaluate not only the quality of service but company products/services/ processes overall (despite question about service level). The most important here is to understand the most impactful drivers of low/high marks, linking reasons and focusing on improvement of most painful ones. By the way, it's common thing that low CSAT is not always driven not by poor service of CS.

In my experience for CX innovation would be effort score - if it is easy to buy from you I will keep coming back. Amazon has made it super easy, Chewy makes it easy and fun for pet lovers. Next would be your detractors from your NPS score. They give you the information on what you need to change in the customer journey and what training needs to happen in your Customer Service department.

Si on parle d’innovation en CX, la CSat peut être l’indicateur pour l’évaluer mais il permet surtout d’identifier à différents endroits ce qui est satisfaisant et surtout ce qui ne l’est pas lors du parcours client et de récupérer sous la forme de verbatim la voix du client et donc ses besoins.

NPS and CSAT are quite helpful ways of measuring Customer Experience, but they are mainly quantitative. Quite often both start-ups and corporations underestimate the impact of a more qualitative feedback. Understanding which values your customers find within your platform can help you understand not just the level of user satisfaction but allows to use the wordings mentioned by the customers themselves in the commercial positioning. Identifying the so-called values will take much more time than NPS or CSAT, but may give amazing insights which quite often trigger changes in marketing strategies. This is where product or solution development meets marketing and the key role in this equation is played by CX through value analysis.

for CSAT is the most common thing in FM but in my in own experience sometime CSAT is used as a documentation process to tell is the client is satisfied or not depending on the person that will write the reports but in realty its upside-down piece of paper that is only matter of who wil write down to. and for me the best approach is show to your client how good your people or technical team to deliver what they request in a professional and way and give some tips and advice to the client.... coz sometime the issue start with the client not in the asset.

ART The average resolution time to solve customer's issue have a direct impact on CSAT. Customers dont like to wait long for their issues to be resolved therefore a prompt solution in line with the service level agreement will go along way to make the customers smile and have a great experience in using the company's products and services.

d'apres mon expérience, la satisfaction du client se mesure par le taux de rétention d'une part et d'autre part les recommandations que peuvent faire ces client à d'autre personne en partageant leur expérience consommateur. bref si un client a une bonne expérience de la marque, il reste et devient ambassadeurs.

I believe that NPS is a THEE metric that can be directly tied to a company’s growth or decline. If you want to know how you’re doing, listen to your customers and those closest to your customer, your frontline team members. Equally important, in fact more important is listening to what they are saying through their verbatim comments. Don’t over-think or over-analyze. Simply take them at their word. Too often company’s spend hours, resources, and dollars deep diving into something so simple. Take care of your customers, take care of your employees, be quiet, and listen. Then provide the coaching, training, and tools to do the job, clearly communicate the expectations, recognize the right behaviors, and hold people accountable.

Similar to CSAT, NPS cannot measure CX Innovation Effectiveness. It is a measure of customer loyalty and largely a B2C metric.

NPS is the one we used in our company. Also we added a T to be looks TNPS as every touch points that deal with the customers and their satisfaction level on department level Like call center NPS, Retail NPS, and so on

NPS is a pivotal metric in gauging customer sentiment and loyalty. Its simplicity, derived from a direct question about the likelihood of recommending a product/service, masks its profound impact on understanding customer advocacy. NPS provides a clear measure of customer satisfaction and potential brand ambassadors. When applied to CX innovation, it becomes a powerful tool for evaluating the success of new initiatives. It goes beyond mere satisfaction to reveal how innovations influence loyalty, retention, and advocacy. The ability to benchmark against competitors and identify the specific factors impacting customer referrals positions NPS as a strategic guide for businesses committed to enhancing customer experience through innovation.

Net promoter score (NPS) is done to figure out whether the customer is a promoter for the company, is a detractor as didn't like the services or the product or is a passive who can either be who likes the services or the product, or is a customer who rates the services or the product as average.

One of the challenges with NPS or CSAT is that you are getting feedback from a select number of customers, i.e. those who respond to a survey. There's been a big decline in the number of customers who will complete a survey, and more than 90% of customers who leave or end a contract do so without letting you know in advance. So, while NPS and CSAT provide some insights, they need to be part of a larger set of metrics.

NPS may be a better indicator of a customer’s overall satisfaction with a brand. Again, it is reliant upon the end-user responding to the survey and is representative of only a fraction of the customer base. However, in many cases it is tied to a baseline loyalty to the brand, and even though a single experience may have been less-than-perfect, the customer will still recommend the product. NPR, therefore, maybe better utilized by recognized brands, rather than newly emerging products.

CSAT is good when it is accompanied by comments. I simple 1 -5 does not tell much. Especially since many customers tend to take the middle ground and give a 3. It is best to allow customers to give their comments and such comments should be taken seriously. On the hand, todays customers are overwhelmed by all the surveys coming their way so many just ignore the surveys. An alternative to this is for employees to take the entire customer journey (with an open mind) and note all the friction points and come up with action plans for improvement. This internal mystery shopping should be supported by customer centric top management for it to be effective.

C’est le seul indicateur aujourd’hui qui soit comparable d’une marque à une autre car c’est la même question. Mais si on pose la question au tout début d’un questionnaire ou à la fin nous avons des scores différents surtout si on demande au client d’évaluer différentes étapes qui ne se sont pas bien déroulées. C’est plus un indicateur de « marque » que CX.

Customer Effort Score (CES) is a decent but incomplete CX metric. By capturing in numeric terms how easy or difficult the customer finds the support function, CES helps to identify the DEGREE of friction a service consumer feels. What CES lacks, however, is detail on WHERE and HOW the friction is introduced. Thus, CES is a starting place for deeper exploration of friction points along the customer journey. In and of itself, however, CES is not particularly actionable.

n my experience, Customer Effort Score (CES) has been a game-changer. Let me share a real-world example. In a previous role, we revamped our customer support portal, aiming to make issue resolution seamless. By implementing a user-friendly interface and intuitive navigation, we saw a significant drop in customer effort. The CES scores reflected this improvement, with customers consistently rating their interactions as low effort. This not only boosted customer satisfaction but also highlighted the impact of our CX innovation in streamlining processes. It reinforced the idea that tangible improvements, grounded in customer feedback, can elevate the overall experience and drive positive metrics.

Customer effort score (CES) measurement will help in decifering the effort %age that customer(s) are required to put in from their end to get the service. The lesser the customer effort, more happy will be the customer. The higher the CES, the greater effort will be required in terms of automating the process, simplifying the process, making the communication flow better and so on...

I feel this indicator correlates directly with Customer Experience initiatives. If an otherwise loyal or engaged customer finds it difficult to engage with your brand;they are more prone to flight. There are two main factors that companies need to focus on regarding excellent service execution. The first is new customer onboarding and the second is problem resolution. These two are non negotiable factors and are often flubbed resulting in poor customer retention. A customer may love your product or service but if it’s difficult to get or keep, they will seek alternatives.

CES is a good metric, if your organization is willing to be self-reflective and management takes the time to understand where the pain points are: is it the product, or technical support, or something else? There are usually some constraints or limitations, (time, money, resources, etc) so instead of aiming for perfection a reasonable goal is to aim for improvement.

CES provides a generalized customer opinion on the ease or difficulty of utilizing a product or service. If simplicity and efficiency are crucial, such as in single-step transactions, when you simply need to know “Was that easy?“ CES is helpful. If there are multiple steps within a transaction, secondary efforts must then be made to determine where pain points originated from.

C’est effectivement un bon moyen d’identifier l’endroit du parcours à améliorer mais ce n’est pas suffisant pour identifier l’innovation à trouver.

The truth is, human beings don't like something that seems like too much work. In e-commerce, customers will abandon the process when they have to jump too many hoops to get to what they want. So if a process can be eliminated, then it should by all means be eliminated. However, an organization must always keep a balance between efficiency and effective. Removing a process in a bid to make the journey more efficient can sometimes render a process effective hence bringing about an increase in complaints.

While CES can be interesting to add some nuance to a Consumption Increase KPI, three are some things to watch for: Limited Context:CES is specific to measuring effort in a particular interaction or transaction. It may not provide a comprehensive view of the overall customer journey or capture the emotional aspects of the experience. Dependency on Survey Timing: The timing of the CES survey is crucial. If the survey is sent immediately after a positive or negative interaction, it might skew results. Proceed with caution

Im deutschsprachigen Raum hat der Customer Lifetime Value (CLV) eine hohe Bedeutung als Kennzahl zur Bewertung der langfristigen Wertigkeit von Kundenbeziehungen. Der CLV hilft Unternehmen, den potenziellen Gesamtwert eines Kunden über die gesamte Dauer der Geschäftsbeziehung zu schätzen. Diese Einschätzung ist wichtig für strategische Entscheidungen, Marketinginvestitionen und Kundenbindungsmaßnahmen. Als Alternative zum CLV werden oft kurzfristigere Kennzahlen wie der Customer Acquisition Cost (CAC) verwendet, der die Kosten der Neukundengewinnung misst, sowie der durchschnittliche Umsatz pro Kunde (Average Revenue per User, ARPU) für kurz- bis mittelfristige Umsatzabschätzungen.

Customer Lifetime Value (CLV) is a crucial metric providing deep insights into the lasting impact of CX innovation. Picture a tech company investing in streamlined customer support, reducing resolution times, boosting satisfaction, and fostering loyalty. CLV enables a tangible measurement of increased revenue from satisfied customers over the long term. It's not just about short-term gains but understanding the holistic, enduring value each customer contributes. This guides strategic resource allocation, ensuring CX innovations enhance the experience for the most valuable customers, fostering sustained profitability and business growth.

One of the things I like about CLV is that it takes into account the acquisition cost. What's especially helpful is when you can take it a step further, and revisit this metric over time. For example, a prospective customer requested a new feature that would require a significant investment from our development team. We looked at the potential CLV, but also took into account what it would mean for our other customers. It allowed us to not only demonstrate our commitment to this prospective customer, it also gave us the opportunity to expand our footprint with other customers, and thus increase their CLV.

CLV is a valuable metric, but it comes with pros and cons. On the positive side, CLV provides a comprehensive view of a customer’s worth over time, aiding in strategic decision-making and resource allocation. It helps identify and prioritize, high-value customer segments, allowing for more targeted marketing efforts. However, challenges include the complexity of accurately calculating CLV, as it involves predicting future customer behavior. Furthermore, it might not be as effective for businesses with rapidly changing markets, or those heavily reliant on short-term sales.

Customer Lifetime Value (CLV) is a critical metric that often holds significant untapped potential for businesses. While its importance is widely recognised, its full development are sometimes overlooked. CLV represents the total value a customer is expected to bring to a business throughout their entire relationship. Understanding and maximizing CLV is akin to unlocking the hidden treasure within your customer base. It goes beyond short-term gains, offering a strategic lens to identify high-value customers, tailor marketing strategies, and foster long-term loyalty.

I agree. Some companies call this persistency. This shows how well your customers love your brand, its product or service by staying active through the lifetime duration of a product or retaining the customer to keep the patronage. Measuring CLV, you can understand the behavior and persona of the customer. Using this to refine your product or bring out new ones that would fit the customer‘s personality thereby making the customer a repeat customer.

Esta me parece la métrica más interesante de todas las mostradas. Imprescindible para clasificar, priorizar y asignar recursos de ventas.

A growing CLV means customers are happy and will be giving you more money over the life of your relationship, provides a chance to plan for scalability. A declining CLV means that a company needs to fix something. Customer Lifetime Value is critical to product market fit.

Para mí esta es la métrica imprescindible de todas las mostradas. Permite clasificar a los clientes para dedicar los recursos ordenados del equipo de ventas.

Well I would say the better our communication and connect is with the customer the earlier and higher will be the adoption rate by customers. Multiple factors can lead to varied changes that can help in delivering great customer service.

Seul il ne donne qu’un chiffre, l’idéal est de pouvoir comparer différents indicateurs avant et après et surtout quel est l’impact de cette innovation sur l’engagement, la satisfaction client, la fidélisation.

Innovation adoption should measure both usage and engagement - how much of the innovation a customer is utilizing - whether it is about feature usage or license usage or a combination - but this by itself may not be enough in the long term.....how much the customer engages with the platform and the touchpoints, is key too...that shows continuous adoption/ usage...and when lacking, can be an early indicator of attrition

The Innovation Adoption Rate is generally considered a useful metric in the high-tech industry, especially for businesses that are introducing new products, technologies, or features. This metric is commonly associated with the diffusion of innovations theory, which categorises adopters into different groups based on their willingness to try new products or technologies. A great example is Microsoft's recent launch of Copilot to boost the Microsoft 365 adoption rate.

I think innovation depends on the level at which the customers comprehend the matrix and measure evaluation of a CX launch strategy, as some innovative technique are not necessary. Especially if it looks vague and unreasonable to the customers, maybe due to the satisfaction derived from the previous products, business needs to carry out great deal of survey to implement some innovation

Customer experience (CX) innovation is a critical factor for long-term success and sustainability of any business. In today's highly competitive marketplace, companies have to grapple with offering customers memorable experiences that generate loyalty and trust in order to remain relevant and competitive. Therefore, it is essential that businesses measure the effectiveness of their CX innovation in order to ensure customer satisfaction and foster business growth. 1.customer satisfaction 2.customer loyalty 3.customer engagement 4.customer experience analytics

This is very valid. If companies were to adopt this, it would help make a lot of meaning innovation and raise awareness of your brand. I don’t think most companies use this metrics. It should be adopted not just for CX innovation but could also help in digital marketing.

Simple and very effective way to look at is, how many of the customers have repeat transactions in the platform consistently over a period of time and this can be bifurcated by customers whose had no effort and high effort ! Bingo ..

Few measurable ones are - count of repeat transactions for same product - different products/ sku’s consumed - products per customer - count of references - advocacy in terms or rating or comments in public platforms

Pour évaluer l'efficacité de l'innovation en expérience client, utilisez des indicateurs tels que le Taux de Satisfaction Client (CSAT), le Net Promoter Score (NPS), le Taux de Rétention Client, le Taux d'Adoption des Nouvelles Fonctionnalités, la Durée du Cycle d'Achat, le Taux d'Abandon de Panier, le Feedback sur les Réseaux Sociaux, la Mesure de l'Effort Client (CES), le Taux de Conversion, et l'Analyse des Données d'Utilisation pour obtenir des insights précieux sur la satisfaction et la fidélité des clients.

I think the answer is, it depends! Depends on the category, brand and stage of journey. A relevant dashboard for the brand with multiple metrics can work well to cover a holistic understanding.

Customer health index is another powerful methodology , also ACSI with thorough care is an important tool I have advised a number of corporations and i have successfully led efforts to kick and launch the “tri*M” score as a measurement that covers both performance and preference dimensions of the experience Combining NPS or Customer efforts score could be a smarter mix that serves the CX program

- Implement automated survey systems to gather CSAT, NPS and CES data, allowing for timely feedback and analysis. - Segment survey results to identify which specific CX innovations are positively impacting customer satisfaction, advocacy and ease of use. - Use data analytics to track CLV, comparing customers who have engaged with your innovations to those who haven't. - Monitor and improve the adoption rate of your CX innovations through targeted marketing and educational efforts. - Continuously analyze and iterate on your CX innovations based on the metrics and feedback collected.

A comprehensive approach involves measuring the Customer Engagement Score. This metric effectively triangulates true CX effectiveness by integrating three critical dimensions: behavioral, transactional, and qualitative attributes. Behavioral metrics capture how customers interact with the product or service, such as usage patterns and frequency. Transactional attributes reflect the financial aspects, like purchase frequency and value. Lastly, qualitative attributes gleaned from customer feedback, surveys, and reviews offer invaluable perspectives on customer satisfaction and perceived value. Together, these elements create a holistic view of CX effectiveness, enabling businesses to fine-tune their strategies for maximum impact.

I agree and I would add retention rates or churn rates because it is not just about how engaged the customer now but how this innovation was effective to keep the customer.

Largely depends on the category but Churn rate and retention rate are important . Both of these are self-explanatory; however, tracking these rates on a monthly basis is important for any diligent CX team.

Businesses ought to focus more on actively tuning into social media conversations. Platforms like Instagram and TikTok are becoming vital spaces where future customers share their experiences and guide others in discovering optimal solutions. This approach is natural and unfiltered, differing from company-driven methods like customer satisfaction surveys and Net Promoter Scores.