Track These Important CX KPIs to Pivot Your Strategy on a Dime
Taylor Pettis April 1st, 2020
How important is good customer experience (CX) to the success of a company?
According to Forbes, consumers are willing to spend up to 17% more at a business that offers them a good CX compared to one that has mediocre or bad customer service.
If you want to take advantage of this trend towards valuing great customer service over quality products and services, you need to find ways to improve customer experiences.
Putting a customer experience strategy in place doesn’t have to cost you a fortune, either. Keep reading as we go over what you need to analyze so you can make some simple and inexpensive changes.
1. WEBSITE TRAFFIC
The first key performance indicator (KPI) you want to check is your website traffic. This is how many people are visiting your site. The exact number doesn’t necessarily mean much, but it should be increasing every month.
If you’re not getting the amount of traffic you think you should be, make sure your website is fully optimized and has fast loading times.
2. PAGES PER VISIT
To really see if you’re providing good CX for your website visitors, you’ll want to check on how many pages each visitor is looking at when they land on your website. If people are just looking at one page before leaving, they may not be having a good experience.
Make sure you include calls-to-action (CTAs) at the bottom of each page and plenty of internal links to encourage visitors to stay on your website for a little while.
3. CONVERSION RATES
Conversion rates can refer to how many visitors convert into leads by providing you with contact information or how many visitors turn into customers. Either way, it’s important to know how many people that come to your website end up making a purchase.
4. CART ABANDONMENT RATES
When a consumer adds products or services into their virtual shopping cart and then never pays for it, this is called cart abandonment. There are many reasons for it, but it almost always indicates a bad CX.
Go through the purchasing process and determine what’s causing people to abandon their carts. You may need to make this process simpler or make other easy changes that will get people to complete their transactions.
5. CUSTOMER CHURN RATES
For those with monthly subscription services, the customer churn rate is how quickly a customer cancels their service. Unsatisfied customers will leave after only a few months whereas happy ones will stay for years.
Speak directly with the customers that are leaving to find out why they canceled. This should give you a list of things you can do to prevent your current customers from leaving as well.
6. CROSS-SELL AND UP-SELL RATES
Cross-selling is when a customer purchases an additional but unrelated product. Up-selling is defined by a customer buying more than what they intended. Since customers who have had a good experience are more likely to do this, high cross-sell and up-sell rates both indicate good CX.
7. PROBLEM RESOLUTION TIME
When your customer has a problem, how long does it take for that issue to be resolved with one of your representatives? Low problem resolution times are a great indicator of good CX.
If these times seem long, take steps to carefully evaluate why this is so you can work on reducing this metric.
8. CUSTOMER ACQUISITION COSTS
Customers gained through word-of-mouth won’t cost you anything. These are acquired when your current customers have had great experiences and want to share those with people they know.
9. CUSTOMER LIFETIME VALUE
If this number is lower than the cost to acquire new customers, then it’s a clear sign it’s time to find out more about why your customers are unhappy so you can make changes.
10. NET PROMOTER SCORE
To find out how many of your customers are willing to promote your products, sent out a survey and ask, “How likely are you to recommend our products?” This number, on a scale of one to ten, will show you how happy people are with you.
For customers that answer four or less, follow up to find out what you can do differently to provide a better CX for them.
11. NET EMOTION SCORE
Net emotion score is how your customers feel about your products. Today, it’s so easy for companies to offer the same products at the same prices as yours, which means you need to provide good CX to maintain a competitive edge.
Although this can be difficult to measure, it can give you valuable insight into why you’re losing customers and how your interactions are making your customers feel. This can then allow you to see exactly what areas you need to work on.
12. CUSTOMER SATISFACTION
At the end of the day, the easiest way to find out what type of experiences your customers are having with your company is to put out a customer satisfaction survey. This should be done after an individual has had enough time to interact with your business and products or services.
Encourage customers to fill out a survey by offering a reward for doing so. Then, make the survey easy and fast to fill out. At the same time, be sure to include questions addressing specific areas that you can potentially improve on.
Don’t forget to thank your customers for filling out the survey and directly address any concerns they have and you could turn this into another positive CX for them.
Learn about 5 Common Customer Experience Mistakes to Avoid
WANT AN EASY WAY TO IMPROVE CX?
Now you know some of the KPI metrics you need to track so you can make changes to your CX strategy. As you can see, many of these are easy and won’t cost you much money so you can get a huge return on your investment.
One of the easiest and most cost-effective ways to improve CX is to have everything together in one platform. Read more here to see how our software program can help you grow your business through improved customer experiences.