For any product or a service to know how it’s doing or where it stands amongst its competitors in the market, we need to have some sort of measure that justifies it.
Now there are various ways by which you can measure your product or service.
E.g. XXX product earned $10 billion in 2019 compared to their own $8 billion in 2018, i.e. They have a growth of 2 billion in that year.
Some may consider our xyz service for our product was the best amongst the other tools in the market based on reviews provided on recognized platforms like g2crowd, capterra, etc
But ultimately it’s the primary product or service that matters.
Everything goes hand in hand. A good product → topped with great service → will give you a great position in the market along with revenue.
Let’s turn our clocks behind and go to the year 1838 when the Statistical Society of London developed questionnaires, which were designed on a paper with a set of questions to ask for. Then came a phase from the late 1940’s where telephone surveys became popular along with paper surveys to get feedback at hotels, restaurants & shops and even during elections to get public’s opinion. The power of the Internet in the 20th century led to online surveys on the web.
So if you see, collecting feedback isn’t new, it’s been with us for more than a century now, but the means of collection have definitely changed.
Take an example of ordering your food from Zomato or Uber Eats platform.
You order it → Pay for it → You Enjoy your food → Then they provoke you to provide feedback asking a simple 1 to 5 pointer scale question to rate their food, packaging, delivery boy and the overall experience.
Today we will focus on the 3 Most Important CX Metrics that everyone should keep track of to measure their product or service CX.
NPS – Net Promoter Score Surveys
For any organization may be product based or service based, this metric is at the top of any CX metrics list to be tracked. A Net Promoter Score is a 11 point scale (0 to 10) system where you can get feedback from users to know whether they would recommend your product or service to their friends or colleagues. A rating between (0 to 6) marks it as a Detractor or a Negative feedback. A rating of 7 or 8 marks it as a Passive or a Neutral response and 9 or 10 is marked as a Promoter or a Positive feedback. Net Promoter Score ranges from -100 to +100.
These surveys are usually sent through email but few of them also collect the NPS feedback through In-App Messages or by sharing the feedback link via SMS. This is also a best way to understand how the user feels about your product/service when they use it for the first time v/s how they feel when they use it after 6 months or a year.
How to calculate Net Promoter Score
Formula :- NPS = ( (Promoters – Detractors)/Total Responses) * 100
Or NPS = Promoter % – Detractor %
If you have collected 100 responses out of which 50 are promoters, 20 are passives and 30 are detractors.
Then your NPS = ((50-30)/100)*100 = 20
What’s a good NPS?
A good NPS varies from different industries.
For Autodealers, Streaming Media an average NPS of 40 or above is considered as Good.
For Retailers, Hotels, Insurance Carriers, Electronic Industry, Software Firms, Supermarkets an NPS of 30 or above is considered Good.
For Airlines, Rental Cars & Transport, Banks, Credit Cards, Wireless Carriers, Fast Food Chains and Parcel Delivery Services an NPS of 20 or above is considered Good.
CSAT Score – Customer Satisfaction Score
The CSAT Score can be measured based on the satisfaction scores which your end users provide for the support provided through email tickets or chats..etc.
For any organization which is a product or service based have a chat support system or an email support system. The customer satisfaction can be determined by a small feedback form that goes to the customer upon ticket closure or chat closure.
Typical industry standards show a customer satisfaction of 80% and above is must for your product or service to achieve good standards but if you see the average customer satisfaction scores across industries it ranges from 65 to 82%.
CSAT score calculation depends on the scale that you are using for satisfaction.
If it’s a 3 or a 5 pointer scale then it would be = (No. of Positive Responses/Total Responses)*100
CES – Customer Effort Score
A Customer Effort Score is another measure by which you can measure an immediate feedback from the customer based on the usage of the platform or service. The CES covers the immediate feedback capability to measure the effort it took to the end user to achieve a certain task or use a particular feature in your tool. Typically this is a 5 or 7 point scale ranging from Very Difficult to Very Easy Or Strongly Disagree to Strongly Agree.
These surveys are mostly transactional based on a certain event.
E.g. “It was easy to schedule the meeting in the platform.”
Strongly Disagree – Disagree – Somewhat Disagree – Neutral – Somewhat Agree – Agree – Strongly Agree
Customer Effort Score = (Agree %) – (Disagree %)
Any CES above 85% marks as a Good CES score.