How Do You Measure Success in Customer Experience

During our first season of CX Chats, we conducted in-depth interviews with 14 leading industry experts to explore their insights on measuring the business impact of excellent customer experience. Here are the enlightening perspectives they shared.

Kristi Faltorusso - CCO - ClientSuccess

Success metrics vary across initiatives. For onboarding, she focuses on usage, adoption, and goal achievement. Technical resources involve tracking integrations, reducing errors, and minimizing support tickets. Education success is tied to onboarding metrics and includes qualitative aspects like customer engagement in webinars and community participation.

Andrew Carothers - Digital CX Leader - Cisco

Andrew Carothers emphasized that measuring success requires a multi-dimensional approach. He mentioned three main types of metrics his team employs: operational metrics, business-focused metrics, and metrics related to business impact. Operational metrics include tracking unique visitors, overall visitors, and engagement across various digital channels. Business-focused metrics assess customer behavior, such as speed of adoption, which measures how quickly customers move through the different stages of product adoption. Lastly, metrics related to business impact consider renewal rates, cost avoidance, and the overall impact on customer support.

Jonathan Shroyer - Chief CX Officer - Arise

Measuring success in CX is about identifying the key performance indicators (KPIs) that matter the most to your organization. Jonathan recommends looking at industry benchmarks and customizing them to your specific needs. The "North Star" metric, often related to customer lifetime value (LTV), is a primary indicator of success. Additionally, satisfaction metrics may be necessary for some companies. The goal is to regularly track and analyze these metrics and make adjustments to improve customer experience.

Simona Barcău - VP of Customer Success - Cority

Simona delves into the art of measuring success, going beyond the typical metrics to uncover the emotional responses behind the numbers. While traditional measurements like Net Promoter Score (NPS) and Customer Satisfaction (CSAT) have their place, Simona's focus on understanding customer behavior and trends sets Cority apart. By deeply listening to customers and capturing their journey's evolution, Cority ensures lasting partnerships and continuous improvement.

Lee Roquet - CEO - Finch

Lee Roquet emphasizes the importance of scalability and growth in CS programs. Success, he argues, is measured through various key performance indicators (KPIs) such as renewal rates, engagement, NPS scores, and referrals. Additionally, understanding the contribution of each division to the overall profitability of the company is crucial. Celebrating milestone moments, like achieving profitability for an account, is a significant aspect of measuring success in CS.

Courtney Smith - Director of CS - Tyler Technologies

In measuring success, Courtney adopts a multifaceted approach. For ongoing integration, net revenue retention, minimizing churn, and expanding product suites are critical metrics. In the broader strategy, Customer Satisfaction (CSAT) scores and Net Promoter Scores (NPS) serve as early indicators. Success, in Courtney's view, is about maintaining positive customer satisfaction while safeguarding net revenue retention.

Lee Kemp - VP of CX - Veritiv

Lee suggests that a combination of data-driven ROI calculations and customer interviews can be instrumental in garnering support from senior leadership. Sharing direct, unfiltered customer experiences allows stakeholders to see the impact of CX efforts firsthand.

Karyn Furstman - Principle - Customers Furst

Karyn recognizes that measuring success in CX goes beyond traditional metrics. She advocates for a comprehensive approach that ties customer experience metrics, such as NPS or customer effort score, to financial performance. Karyn's approach ensures that the impact of CX efforts is transparent and relatable to the C-suite and the entire organization. By connecting CX improvements to tangible business outcomes, Karyn demonstrates the true value of a customer-centric approach.

Joel Sylvester - CCO - Five Star Call Centers

Measuring success in CX involves tracking key performance indicators (KPIs) that align with your organization's goals. Joel highlights the importance of speed of response, quality metrics, and cost management. By setting clear expectations, utilizing real-time analytics, and inspecting performance regularly, you can ensure that your CX efforts are on track.

Stacy Sherman - Founder & CEO - Doing CX Right

Success in CX, according to Stacy, isn’t solely about dollars and cents. It encompasses building relationships, customer retention, referrals, and a company culture focused on empathy and customer-centricity. However, the scientific aspects involve metrics, data analysis, and breaking silos to streamline information flow.

Tom DeWitt - Director of CXM@MSU

Measuring CX's success goes beyond mere financial metrics. It encompasses a nuanced understanding of transaction satisfaction, long-term loyalty, and the value of personal relationships. Metrics like NPS and CLV provide valuable insights into the multifaceted nature of CX. Adapting and reinventing traditional models in the ever-evolving customer experience landscape is crucial to ensure lasting success.

NPS And Transaction Satisfaction

While Return on Investment (ROI) is a significant indicator, DeWitt introduces another essential metric: Net Promoter Score (NPS). However, he cautions that NPS alone doesn't tell the whole story. NPS measures the likelihood of a customer recommending a business but doesn't consider the full breadth of a customer's experience.

Understanding Transaction Satisfaction

DeWitt delves into the concept of transaction satisfaction. Rather than focusing solely on long-term loyalty, transaction satisfaction captures the customer's immediate experience. It provides valuable insights into what happened during a specific interaction.

Building Loyalty Over Time

DeWitt emphasizes that loyalty is built over time through a series of satisfactory visits or experiences. He mentions the importance of recognizing emotional impacts on customers, which can extend beyond the individual transaction.

Exploring Customer Lifetime Value

A metric that often gets overlooked is Customer Lifetime Value (CLV). DeWitt believes this metric is valuable as it encourages organizations to think about long-term customer relationships. CLV considers how long customers stay, their transaction frequency, and how their behavior changes over time due to loyalty.

The Personal Touch

DeWitt highlights the importance of personal relationships in business. Just as you may have a preferred place for a haircut, loyal customers are inclined to stick with businesses they trust. This loyalty can make customers less sensitive to pricing and more willing to pay for the added value they receive.

Democratizing Data

In today's data-driven world, DeWitt calls for the democratization of data within organizations. He believes that data should be shared freely across all levels of an organization, empowering employees to understand their role in impacting the customer's journey.

Laurie Barlev - Founder - Barlev Success

She highlights the significance of both business and team-oriented success metrics. While gross revenue retention is a critical business metric, early indicators such as time to value, engagement, and customer feedback serve as key measures influencing the team's success.

Gina Patel - VP of CS - Sensor Tower

Success in the CS realm is multifaceted. While individual success stories and customer feedback contribute to the narrative, key performance indicators such as Gross Revenue Retention (GRR) and Net Revenue Retention (NRR) are crucial metrics. Business reviews, upsells, and overall customer satisfaction collectively define success. The proof of a successful strategy lies in tangible results, and these metrics serve as benchmarks for our ongoing efforts.

Michelle Spaul - CX Consultant - Delta Swan

Measuring success in CX involves a blend of tangible outcomes and customer perception metrics. Michelle highlights the importance of quantifiable achievements, such as reduced costs and increased retention rates. While acknowledging the relevance of metrics like Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT), Michelle underscores the need for metrics to resonate more deeply, translating into concrete business improvements.