According to McKinsey, maximizing customer satisfaction may increase revenue by up to 15%. Moreover, doing so while reducing the cost of customer support may lead to an increase of up to 20%. Having in mind these stunning facts, there’s no room for wondering why extraordinary customer experience is becoming one of the biggest passions for numerous businesses.
To understand how CX affects your business performance, you should figure out how strong is the interconnection between:
- their satisfaction with your brand and
- the amount of money they spend on your brand.
The quantitative expression of this connection can be a painstaking process if you don’t know what metrics you should rely on. That’s why in this article we’re leading you through the process of CX ROI determination. Stay with us and find out more about:
- Key metrics to effectively measure CX ROI
- Efficient customer data consolidation and correlation
- Simple ways to improve ROI by using adequate support tools
What Metrics Should You Use to Effectively Measure CX ROI?
Did you know that only 1% of organizations provide an excellent customer experience? This is a surprising fact if we have in mind that the improvement of CX is a top priority for more than 70% of enterprises.
That’s why we’ll help you determine your business position on the CX scale and its reflection on your financial performance. We’ve created a list of the most reliable metrics used by businesses that provide extraordinary CX and we’re sharing it with you right below.
#1 Request Handling Metrics
When it comes to measuring the efficiency of handling customers’ requests, there are two important metrics:
- First response time, which determines the average time that passes from the moment when a customer opens a ticket to the initial feedback that support provides.
- Average handling time, which expresses the time needed for support to completely resolve a customer’s request.
These numbers will explain how efficiently agents perform their tasks by showing the time and number of interactions needed to resolve a problem.
#2 Customer Effort Score
This metric focuses on all tasks that customers must perform to get what they want. They may need to get their support ticket resolved, finding, or ordering a product, getting additional information, etc.
CES is frequently measured by providing a simple scale-based survey that customers fill once they have performed the necessary actions. Obviously, the higher CES is, the more CX lowers.
#3 Customer Satisfaction
This parameter shows your customers’ level of satisfaction with the services that you have provided. It can refer to customers’ impressions about your way of selling or delivering a product, resolving reclamations, or anything else that can shape their image of your brand.
CSAT is also typically measured using automated surveys in which your business is rated on a 1 to 5 satisfaction scale.
#4 Customer Churn
Customer churn is evaluated using the rate that you get by dividing the sum of lost customers by the sum of active customers for the period that you’re monitoring. This metric shows the percentage of customers that don’t repeat purchases or give up on using your service.
The most important part of calculating this parameter in an effective manner is the definition of “churned customers“. In other words, if you’re aware that your regular customers tend to repeat purchases within a certain period, you can say that churned customers are those who don’t repeat the purchase within that time frame.
#5 Net Promoter Score
Last but not the least, NPS is an important parameter of your business reputation. It refers to the percentage of the users of your services that would spread the word about your brand. Spreading the word, in this case, refers to recommending your business to friends, family, or partners.
So, if you’re familiar with the 1 to 10 scale-based survey question “How likely are you to recommend this to your friend?“, now you know its purpose. You get the final NPS score by subtracting those who wouldn’t recommend your brand from those who would do so.
How to Correlate Business and Customer Data to Get Accurate Results
You’ve calculated CX parameters and chosen business parameters that you find relevant. These could be:
- purchase amount and frequency,
- number of support tickets,
- product returns etc.
Now you should find the optimal way of correlating them to get realistic results. According to Temkin Group, what you should do is to categorize customers into three to five groups based on their survey answers.
Once you’ve done this, you must observe how each of the categories performs compared to your business metrics. This can only be done if you have profiled each current, potential, and previous customer, including people who have signed up for your newsletter or created an account on your website.
To analyze data this way, it’s vitally important to have well-organized, regularly updated databases where you’ll find the crucial info. The easier access to the information is, the less painstaking the correlation process will be. Provided that your business uses powerful tools that can safely store all types of data (such as CRM software, knowledge base software, and help desk) the process will be significantly easier.
How Can Quality Support Tools Boost Your ROI
So, you’ve received the information about your business performance. No matter how great your results are, you’ll probably want to improve them additionally. And to do so, you’ll have to improve your CX, for what you’ll need a good technical base – reliable support tools. But, how to make the most of them? Here you have some ground rules you should start with.
#1 Establish proactive live support chat and make the action buttons easily visible on your website.
#2 Boost conversion rate by having agents jump in to help customers before they leave without performing an action.
#3 Don’t just give generic advice but pay attention to specific details that are the basis of your customers’ requests. Use your organization’s knowledge base to provide precise and relevant answers.
#4 Once you have a customer make a purchase, don’t hesitate to encourage them to buy more. You may want to have a live chat agent who is skillful and subtle in upselling and cross-selling your products.
#5 Make sure to have your support tools integrated and synchronized to do the work more efficiently. Above all, your live chat support should be integrated with your CRM software to help agents access the database easier and let the information flow constantly.
#6 Carefully monitor live chat performance. This way you’ll be able to instantly adjust problematic aspects to provide better CX when possible. Immediate reactions may not only save your money but also significantly affect your ROI.
The Value of Measuring CX ROI Effectively
Monitoring and measuring customer experience and its effects are some of the vitally important aspects of every business. This is owed to the fact that effectively use metrics can provide you with incredibly useful information, such as:
- The level of CX
- The connection between good CX and an increase in ROI
- The severity of impact that poor CX has on changes in ROI
- Weak areas in communication with customers and ways of their improvement.
Accordingly, it is substantially significant to express CX quantitatively in a precise and unambiguous manner. As you could see throughout the article, this is performed by using reliable and meaningful metrics (such as CES, CPR, and NPS) and correlating them with relevant business metrics to provide accurate information.
Finally, when all the relevant aspects are thoroughly analyzed, the key step is to establish a quality system of chat support software that will stimulate the positive influence of CX on the increase in ROI.