Customer Experience (CX) messen

Author: Matthias Kern | Montag, 15. April 2024
Category: User Experience

Customer Experience (CX) Measurement.


In the introductory article of our CX series, we explained why the development of a new CX scoring model is necessary and why we need a Customer Experience Score.

In this second part, we provide an overview of the conventional metrics for measuring CX, the effectiveness of measures already implemented, and identify areas for optimization. In the concluding third chapter, we focus on the UDG CX Score and provide an outlook using a concrete example.

Today, a positive customer experience is more important than ever. Customers have more choices than ever when it comes to accessing content and products. The way they experience brands has profoundly changed, becoming more complex and incredibly fast.

The changing offerings are great for customers but pose a challenge for companies to measure valid Customer Experience (CX), create positive customer experiences along an entire customer journey, and continuously adapt – at the right place, at the right time, and in the right way.

Customer Experience (CX) is considered a decisive factor for the economic success of a brand or product. A positive Customer Experience can include many aspects, for example:

  • UX-friendly websites and apps

  • Quick response to customer inquiries and problem-solving

  • Quality of products or services

  • Efficient handling of transactions

  • Personalization in communication

But how can Customer Satisfaction or Experience be measured? Since numerous factors come into play and need to be considered, there is no single meaningful metric that can summarize Customer Experience. This is because CX is not only made up of factual but also subjective and emotional impressions and is therefore difficult to determine with a single value.

To design a holistic Customer Experience strategy, analyzing the status quo is first important. To improve Customer Experience, it must be ascertained how customers react to a brand and perceive the product. Is the CX positive or negative?

With KPIs for Customer Experience (CX)?

To find out whether the CX is positive or negative, there isn't just one formula. Instead, various metrics are used to determine values that concern customer satisfaction. It is crucial to look at different metrics in relation to each other and combine the metrics of X-data (Experience Data) and O-data (Operational Data).

Different metrics can serve as fundamental elements for evaluating customer experience – depending on specific goals and requirements. Below are some common metrics that can be used to determine indicators:

  1. NPS, short for Net Promoter Score

    NPS measures the likelihood that customers would recommend a company or brand. Customers are asked to rate their willingness to recommend on a scale from 0 to 10. A high NPS indicates strong customer loyalty, which in turn suggests a positive customer experience.

  2. Kundenzufriedenheit (Customer Satisfaction, CSAT):
    Similar to NPS, CSAT measures customer satisfaction with a specific product, service, or interaction.

  3. Der Customer Effort Score (CES)
    CES is a metric that indicates how much effort customers had to expend to achieve a goal, such as solving a problem or completing a transaction.

  4. Customer Lifetime Value (CLV)
    CLV is the revenue a customer typically brings to a company before they stop being a customer.

  5. First Contact Resolution (FCR)
    It measures the percentage of customer inquiries or issues that are resolved on the first contact with customer service. A high FCR value indicates an efficient and satisfactory customer experience.

  6. Customer Retention and Repeat Purchases
    These metrics measure the number of returning customers, the frequency of purchases, and the value of the customer lifecycle. They provide insight into loyalty and engagement.

  7. Customer Complaints and Returns
    The number of customer complaints and returns can serve as an indicator of problems and dissatisfaction. A low value indicates a small number of complaints and suggests a positive CX.

  8. Customer Retention Rate
    It indicates the percentage of customers who stay for a set period. This can be determined by analyzing contract renewals, churn rates, and repeat purchases.

  9. Revenue Churn
    Revenue churn provides insight into how much revenue was lost over a specific period. For subscription-based companies, this is an important metric.

The choice of specific metrics should be tailored to the industry, company, and individual goals. It may also be sensible to add additional metrics that capture more specific aspects of CX – depending on requirements and priorities. Thus, different approaches can be combined to obtain an accurate picture of customer satisfaction.

Cookie-less Future and Digital Customer Experience.

The Digital Customer Experience also describes how content or products are perceived by customers. Here, the focus is on the touchpoints and interactions of a Customer Journey. However, the times when one could collect individual tracking data through Google Ads, SEO, mailings, or newsletter campaigns are over due to the so-called "Cookiepocalypse."

The Cookiepocalypse refers to fundamental changes in data protection and data collection in digital marketing. In recent years, privacy concerns and new legal regulations, such as the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the USA, have led to significant changes regarding cookies: browsers and platforms have begun implementing stricter policies for cookies, which means companies have less access to personal data of their customers. Cookie data was used to display personalized ads and better understand user behavior.

It is becoming increasingly difficult to access individual tracking data. A radical rethink is necessary; new ways and alternatives must be found without accessing cookie data.

This fact requires new ideas like privacy-friendly tracking methods, AI technologies, and creating relevant content to engage and retain customers.

Real-time Customer Experience (CX).

For effective optimization of Customer Satisfaction, a multi-channel approach is necessary. It requires numerous cross-channel and cross-media touchpoints to meet the challenges of volatile markets, global networking of value chains, and increasingly shorter innovation cycles.

With a newly developed CX metric, it will be a continuous task to collect various data points in real time and consolidate them into a CX score.

In the concluding third part Imaging Customer Experience Measurable: Der PIA UDG CX Score we focus on the new PIA UDG CX Score and provide insight into how it works.