From Metrics to Enhancements: Measuring and Improving Customer Experience

These days, customers enjoy more flexibility and choices than ever when it comes to shopping — especially in a digital-first era. More importantly, they enjoy businesses and stores that prioritize customer experience above all else to attract and retain customers. Is your business keeping up? 

With more alternatives available to customers at the mere touch of a button, creating memorable shopping experiences can be the difference between retaining loyal customers and losing them to the competition. But the art and science of measuring customer experience go beyond mere numbers ; it’s about understanding sentiments, predicting behaviors and fostering lasting relationships. In this article, we’ll explain the tools that will give you a well-rounded, ever-evolving, long-term blueprint to provide the best experience possible for your customers.

Why It’s Crucial to Measure Customer Experience

From the first click on a website to post-shopping support, a consumer’s journey with a brand is a tapestry of various interactions. This journey shapes their perception, loyalty and advocacy for a brand. Ensuring positive experiences leads not only to repeat business but also to word-of-mouth referrals (an invaluable marketing tool for retailers). In essence, a well-curated customer experience has the potential to turn customers into brand ambassadors.

Key Metrics for Understanding Customer Experiences

Facts and numbers don’t lie. And by gathering and studying the following metrics, you’ll arm yourself with the data you need to inform and improve your business’s relationship roadmap.

Net Promoter Score (NPS):

NPS measures the overall sentiment customers hold for your brand by asking how likely they’d be to recommend your business to others. This simple question offers insights into brand loyalty and the potential for positive word-of-mouth. Companies often gather NPS data through post-shopping or post-interaction email surveys or on-site pop-ups. Understanding this metric provides clarity on brand strengths and highlights potential areas needing improvement.

Customer Satisfaction Score (CSAT):

CSAT provides an immediate snapshot of customer sentiment at specific interactions. It’s typically gauged through short post-interaction surveys, asking customers to rate their satisfaction with a particular service or product. Whether administered after they’ve shopped with you, a support call or any other touchpoint, the CSAT helps businesses refine those moments, ensuring a more consistent and satisfying customer journey in the future.

Customer Effort Score (CES):

Surveys, often post-interaction, will ask customers to rate statements such as, “The company made it easy for me to handle my issue.” This is known as CES, the score to determine a business’s effort with creating an optimal experience for customers. A high CES indicates that the process is smooth and devoid of friction, while a lower score suggests complications or hurdles. By monitoring CES, businesses can identify and remove obstacles, creating a more streamlined experience.

Churn Rate:

Do you know how many of your customers leave your business … more importantly, do you know why and how often it happens? The churn rate indicates the percentage of customers discontinuing a service within a specified timeframe. This metric is derived from tracking user activity on platforms or subscription lists over a set period. Regularly monitoring churn rate provides real-time feedback on customer satisfaction and offers a lens to spot potential systemic issues or operational hiccups.

Customer Retention Rate:

Retention focuses on the percentage of customers remaining loyal to your brand over a set duration. Businesses usually calculate this metric by comparing the number of customers at the start of a period to those remaining at the end. High retention rates signify satisfied, loyal customers. To boost this metric, it’s essential to offer consistent value, respond to feedback, and nurture customer relationships.

Tools and Techniques for Data Collection

In today’s digital landscape, businesses have moved beyond manual feedback forms. They now utilize a range of tools and techniques for data collection:

Digital Surveys and Feedback Forms:

Digital surveys and feedback forms offer immediate, customizable insights versus the manual versions, which may take more time to compile and analyze. They collect structured feedback from customers at various touchpoints, providing real-time data for analysis.

Deep Dives with Interviews and Focus Groups:

Qualitative methods like interviews and focus groups allow businesses to delve into the “why” behind the data they receive. Meaningful conversations with or more detailed explanations from actual customers allow lead to a deeper understanding into motivations and pain points that can be acted upon.

Monitoring Social Sentiment:

Social media platforms and review sites are rich sources of unsolicited, real-time feedback. To ignore this avenue means you are not meeting your customers where they are — which is in their favorite channels, telling their family and friends about their experience with you (the good and the bad). By tracking brand mentions and comments, businesses can gauge genuine sentiments, identify trends and respond to customer issues.

Translating Data into Actionable Insights

As crucial as it is, merely collecting data isn’t the endgame — after all, what’s the point of having it if nothing is done with it? Businesses need to interpret and understand what the data is ultimately telling them: to find patterns, anticipate needs and identify areas of improvement in catering to customers’ needs and wants. 

Weaving these insights into actionable strategies — turning even areas of weakness into opportunities for enhancement — is where you’ll find the path to success. Here are just a few ways to do just that.

• Leverage Promoters: When NPS scores are high, capitalize on the enthusiasm of customers who talk up their positive experiences. Engage with them, encourage referrals, and nurture them as brand advocates to amplify your reach.

• Address High Customer Effort: If CES scores indicate elevated customer effort, dive into the specifics of where the friction lies. Streamline processes, automate where possible and aim for a more seamless experience.

• Analyze Churn Factors: Churn rate insights are invaluable. Conduct post-churn surveys to gather direct feedback from departing customers. Use this feedback to pinpoint underlying issues and take targeted actions to reduce churn.

• Enhance Retention Strategies: A high retention rate is a testament to customer satisfaction — so analyze, then capitalize on what’s important to your most loyal customers. Enhance the strategies that resonate with them, introduce loyalty programs, and ensure consistent value delivery to nurture lasting relationships.

In essence, these metrics serve as your compass, directing you to areas of improvement and opportunities for elevating customer experiences. The key is to translate data into actionable insights that drive positive change, ultimately strengthening your customer relationships and fueling business growth.

Shopping Is Easier with Acima Leasing

One data point you may discover these days is how many customers prefer businesses that offer a variety of payment options when shopping for things they want. This is especially true of those who, for whatever reason, are not able to utilize credit. 

That’s why offering flexible payment solutions like Acima Leasing can be a game-changer for your customer experience. From improved convenience to increased retention and loyalty, our lease-to-own option can take your business to the next level by giving customers a payment solution that fits how they want to shop – without using credit*. So whether or not this comes up in your analysis, take it from us: Implementing Acima Leasing in your stores is a quick and easy way to provide just one more level of thoughtful service that will keep your customers coming back for a great experience. 

Common Questions

What should I do if my NPS or CSAT scores are low?

Low NPS or CSAT scores indicate areas that need improvement. Engage with customers to gather feedback, identify pain points and take corrective actions. Use these insights to enhance your products, services and customer interactions.

How can I reduce customer churn?

To reduce customer churn, conduct post-churn surveys to understand why customers are leaving. Address the root causes of churn by improving product or service quality, customer support and overall customer experience.

What strategies can I use to enhance customer retention?

Enhance customer retention by personalizing customer experiences, providing excellent customer service and introducing loyalty programs. Analyze what keeps loyal customers engaged and replicate those strategies.