{"id":42460,"date":"2020-04-16T00:00:00","date_gmt":"2020-04-16T00:00:00","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/customer-experience-analytics\/"},"modified":"2026-03-19T15:11:57","modified_gmt":"2026-03-19T22:11:57","slug":"customer-experience-analytics","status":"publish","type":"post","link":"\/us\/en\/blog\/customer-experience-analytics\/","title":{"rendered":"Customer experience analytics: CSAT, NPS, CES, oh my"},"content":{"rendered":"<p>Running a business is like running a triathlon for a living.<\/p>\n<p>You have to put in a lot of planning, preparation, and hard work just to keep going.<\/p>\n<p>And if you\u2019re really serious about it\u2014if you want to outdo your competition\u2014you will most likely have a personal trainer or advisor to consult with.<\/p>\n<p>Every now and then, your advisor will measure your biomarkers, recommend an effective workout regimen based on the readings, and tell you to make lifestyle adjustments to help you achieve maximum speed and performance.<\/p>\n<p>And if you\u2019re trying to improve your customer experience, that trainer or advisor is your analytics report.<\/p>\n<p>Data cuts across all stages of a customer journey.<\/p>\n<p>Data tells you what your customers want, how they perceive your product, how they engage with your brand, and how they feel after doing business with you.<\/p>\n<p>And that\u2019s where customer experience analytics comes into play.<\/p>\n<p>Analyzing data is super important not just to understand customers\u2019 motivations behind a purchase, but also for your brand to make the right moves to meet <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-expectations\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer expectations<\/a>.<\/p>\n<p>The really smart researchers from the Forrester group also back up the importance of customer experience analytics in one of their recent industry reports.<sup>1<\/sup><\/p>\n<p>The paper mentions a new (and arguably ground-breaking) concept of Next Best Experience, or NBX, which they define as:<\/p>\n<p>\u201cThe ability to identify and deliver the right experience to the right customer in real-time based on everything you know about the customer.\u201d<\/p>\n<p>In other words\u2026 using analytics to improve your customer experience (CX)!<\/p>\n<p>The folks at Forrester suggest that the future belongs to businesses that can analyze signals across the entire customer journey to create a holistic <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-experience\" target=\"_blank\" rel=\"noopener noreferrer\">customer experience<\/a>\u2014instead of the traditional way of piecing together different parts of the experiences.<\/p>\n<p>In this post, we\u2019ll look at:<\/p>\n<ul class=\"table-of-content\">\n<li><a href=\"#What \u201ccustomer experience analytics\u201d means\">What \u201ccustomer experience analytics\u201d means<\/a><\/li>\n<li><a href=\"#The benefits of having (and using) customer experience analytics\">The benefits of having (and using) customer experience analytics<\/a><\/li>\n<li><a href=\"#How you can improve your customer experience using analytics\">How you can improve your customer experience using analytics<\/a><\/li>\n<li><a href=\"#What metrics you can use to measure customer experience\">What metrics you can use to measure customer experience<\/a><\/li>\n<\/ul>\n<hr \/>\n<p class=\"p1\">\ud83d\udd0d<span style=\"font-weight: 400\"> Access <strong>Metrigy&#8217;s free report<\/strong> to learn more about the 2022 state of customer experience technology.<\/span><\/p>\n<p><span style=\"font-weight: 400\"><\/p>\n<div class=\"download-form-widget standart-download-form\" data-url=\"https:\/\/netstorage.ringcentral.com\/report\/metrigy-cx-report.pdf\" data-id=\"6a0b03a287892\" id=\"6a0b03a287892\">\n\t\t<button tabindex=\"on\"  on=\"tap:6a0b03a287892.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">\ud83d\udcd9 Get the report<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<div class=\"download-form-modal-title\">\ud83d\udc40 \u200a Get this free report to learn about the 2022 state of customer experience technology. <\/div>\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Get it now\">Get it now<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:6a0b03a287892.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\">Enjoy! <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><\/span><\/p>\n<hr \/>\n<p><a name=\"What \u201ccustomer experience analytics\u201d means\"><\/a><\/p>\n<h2>What does \u201ccustomer experience analytics\u201d mean?<\/h2>\n<p>Most phrases with the word \u201canalytics\u201d tend to scare people off.<\/p>\n<p>Luckily, customer experience is <i>not<\/i> one of those super-hard-to-grasp concepts. It literally is what it says: customer + experience + analytics.<\/p>\n<p>\u201cCustomer experience analytics\u201d basically refers to the data that illuminates your customers\u2019 relationship with your business. From how they become aware of your brand, to the buying experience, to expansion and upselling, this is a term that takes a holistic view of the customer experience.<\/p>\n<p>To collect this data, there\u2019s usually a process that covers everything from discovering and understanding customer data, to analyzing it so that your brand can make informed decisions to improve the customer experience.<br \/>\n<a name=\"The benefits of having (and using) customer experience analytics\"><\/a><\/p>\n<h2>What are the benefits of having (and using) customer experience analytics?<\/h2>\n<p>Data is the internal compass of any business. It helps you to sail your business in the right direction and provides a solid foundation for you to grow and retain your customer base.<\/p>\n<p>And data can be an especially huge lever for small businesses that are just starting out.<\/p>\n<p>The earlier you can cash in on data and analytics to feel your customers\u2019 pulse from early on, the more nimble you can be about your strategies and ultimately set yourself up for success.<\/p>\n<p>And data is a dynamic commodity. You can use it either to give more individualized attention to your customers or to delight your customers at scale.<\/p>\n<p>Here\u2019s an example that many small businesses can probably relate to.<\/p>\n<p>Let\u2019s say you\u2019ve set up an automated interactive voice response (<a class=\"waffle-rich-text-link\" href=\"https:\/\/www.ringcentral.com\/contact-center\/interactive-voice-response.html\">IVR<\/a>) to make your customer service more efficient. It\u2019s a great solution to your recurring staffing problems, plus it empowers your customers to help themselves by hitting the right numbers on their phone.<\/p>\n<p>Nothing wrong with that, right?<\/p>\n<p>Well, it turns out\u2014data tells a different story.<\/p>\n<p>While <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/workflow-automation\/\" target=\"_blank\" rel=\"noopener noreferrer\">workflow automation<\/a> does make most teams more efficient, customers who call with service-related questions prefer to talk to a human as opposed to interacting with an automated IVR.<\/p>\n<p>Take a look at our recent survey into <a href=\"https:\/\/www.ringcentral.com\/customer-communications-trends-report.html\" target=\"_blank\" rel=\"noopener noreferrer\">how consumers like to communicate with businesses<\/a>:<\/p>\n<p><a href=\"https:\/\/www.ringcentral.com\/customer-communications-trends-report.html\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter wp-image-6844 size-large\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/image2-168-1024x768.png\" alt=\"Recent survey into how consumers like to communicate with businesses\" width=\"840\" height=\"630\" \/><\/a><\/p>\n<p>Without data and analytics, many people might assume that having a chatbot would be enough, or might <i>over<\/i>-automate their customer service without considering what customers actually want.<\/p>\n<p>And that\u2019s just one example. Using a powerful tool that tracks your <a href=\"https:\/\/www.ringcentral.com\/call-center-metrics.html\" target=\"_blank\" rel=\"noopener noreferrer\">call center metrics<\/a> can give you critical insights about, say, if your team is using your phone system efficiently and how you might be able to provide more <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-service-vs-customer-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">agile customer service<\/a>.<\/p>\n<p>From gathering important customer intelligence, to rewiring your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-engagement-strategies\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer engagement strategies<\/a> and creating a game plan for more complex <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-interactions\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer interactions<\/a>, there are so many things you can do with customer experience analytics.<\/p>\n<p>And that leads us to the big question we sought out to answer in this post.<\/p>\n<p><i>\u200b<\/i>[ebook-download title=&#8221;How customer-obsessed is your business?&#8221; link=&#8221;https:\/\/netstorage.ringcentral.com\/documents\/quiz_how_customer_obsessed_your_business.pdf&#8221; cta-text=&#8221;Take the quiz&#8221; src=&#8221;&#8221;]<br \/>\n<a name=\"How you can improve your customer experience using analytics\"><\/a><\/p>\n<h2>How can you improve your customer experience using analytics?<\/h2>\n<p>The traditional way of managing customer experience can be pretty siloed\u2014Marketing has one idea of what customers want to hear, while Sales and Customer Support teams might have their own strategies.<\/p>\n<p>This has to change. If you want to provide a consistent customer experience, you have to be able to use data to align all the teams toward the same goal.<\/p>\n<p>Below, we\u2019ll look at four ways to improve your customer experience by using data and analytics.<\/p>\n<h3>1. Unify the customer journey<\/h3>\n<p>To use data to your advantage, you have to first <i>have<\/i> data.<\/p>\n<p>Right now, here\u2019s how it\u2019s happening in many companies:<\/p>\n<p>Marketing teams invest a lot of their time and energy to come up with things like ideal customer profiles (ICPs) and <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-journey-map-templates\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer journey map templates<\/a>.<\/p>\n<p>As customers move along their journey, brands typically look at bounce rates on their website pages, subscription rates, and email open rates to measure the level of engagement.<\/p>\n<p>And once they turn into paying customers, brands run surveys like customer satisfaction (CSAT), Net Promoter Score (NPS), and Customer Effort Score (CES) to measure how they\u2019re performing in the eyes of their customers. Using dedicated CSAT software makes it easier to automate post-interaction surveys, centralize results, and spot satisfaction drops by channel, product area, or support agent\u2014so CSAT becomes an action signal, not just a score.<\/p>\n<p>And this is all great\u2014if you can tie all the data together in a single harmonious thread.<\/p>\n<p>Here\u2019s one way you can do that: use the voice of the customer (VOC) to capture customer intel.<\/p>\n<div class=\"tip\">\n<div class=\"tip-heading\"><b>\ud83d\udca1 Voice of customer (VOC)\u00a0<\/b><\/div>\n<p>A form of detailed research that brands can conduct to understand their customers\u2019 requirements and expectations\u2014across all stages of their journey.<\/p>\n<\/div>\n<p>Let\u2019s talk about how Subbly, a software as a service (SaaS) company, uses VOC to improve their product.<sup>2<\/sup><\/p>\n<p>Subbly is an ecommerce subscription platform based in Los Angeles with a small team (less than 10 people).<\/p>\n<p>But don\u2019t let their small size fool you\u2014it doesn\u2019t stop them from gathering valuable <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-feedback\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer feedback<\/a>.<\/p>\n<p>The beauty of how Subbly does it is that a lot of this work is automated. For example, they have a dedicated page on their website where customers can submit feedback on their product.<\/p>\n<p>At one point, they also had a short survey embedded on their pricing page to understand whether prospects are willing to pay a higher monthly subscription fee and a lower transaction fee, or vice versa:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-6845\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/image5-108-1024x640.png\" alt=\"Subbly short survey\" width=\"840\" height=\"525\" \/><\/p>\n<p>Here\u2019s what Subbly CEO Stefan Pretty has to say about doing this exercise.<\/p>\n<p>\u201cWe allow customers to voice their suggestions and vote on each other\u2019s on our feedback page link. And we also use our Facebook group to get feedback.\u201d<\/p>\n<p>Pretty says that the company launched two major features\u2014an improved checkout page and a tax calculation feature\u2014directly as an outcome of gathering customer feedback.<\/p>\n<p>Unlike the job of mapping a customer journey or building a <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/user-persona\/\" target=\"_blank\" rel=\"noopener noreferrer\">user persona<\/a>, collecting the voice of the customer isn\u2019t just one department\u2019s job. First, It\u2019s the responsibility of your leadership team to enforce every team\u2019s participation to use customer experience analytics to draft the VOC.<\/p>\n<p>Now, this VOC allows each function in your business to set the right benchmarks for themselves.<\/p>\n<p>Your product team will be able to come up with new features that your customers are asking for\u2014or scrap the ones that are making your product feel bloated.<\/p>\n<p>Your marketing and sales team can set realistic leads and budget goals for the next quarter based on the VOC.<\/p>\n<p>And your <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-support\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer support<\/a> team can work towards improving metrics like their <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/first-call-resolution-industry-standard\/\" target=\"_blank\" rel=\"noopener noreferrer\">first call resolution rate<\/a> (if that\u2019s what customers are complaining about).<\/p>\n<p>If, in case, your teams fail to reach the benchmarks\u2014it either means there\u2019s a gap in their performance or they set unrealistic metrics for themselves.<\/p>\n<p>If they crush their goals too easily and\/or overachieve their metrics, that means they either set the benchmarks too low or that they now have to raise the bar.<\/p>\n<div class=\"tip\">\n<div class=\"tip-heading\"><b>\ud83d\udca1 Pro-tip: <\/b><\/div>\n<p>Use VOC to avoid being obsessed over isolated metrics\u2014such as website traffic or call handling time\u2014because they don\u2019t represent the big picture.<\/p>\n<\/div>\n<h3>2. Personalize your customer experience<\/h3>\n<p>Data is powerful when used right, but it can come across cold and impersonal if you don\u2019t use it in a contextual way.<\/p>\n<p>For example, you should be matching your customers\u2019 intent with the right data to create a holistic customer experience.<\/p>\n<p>Say you run a boutique hotel franchise in a cute town near a popular ski resort.<\/p>\n<p>Come every November, you get the same customers at your reception desk once the ski season kicks off.<\/p>\n<p>And every year, when your customers check in to your hotel, they bring a ton of valuable data that you can analyze to offer a better customer service.<\/p>\n<p>If you use this data just to fulfill basic service interactions like matching the guest ID with your last year\u2019s records or auto-filling their phone number during the check-in form\u2026 that\u2019s not what we\u2019re talking about. That\u2019s just doing the bare minimum with your data.<\/p>\n<p>You could be doing more\u2014by using this customer data to offer a personalized experience and giving your customers an incentive to stick with your business.<\/p>\n<p>One way to kick it up a notch with simple personalizations? Offer long-time or <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/return-customer\/\" target=\"_blank\" rel=\"noopener noreferrer\">returning customers<\/a> a complimentary bottle of their favorite wine. (You might\u2019ve seen examples of hotels doing this on Instagram and Twitter.)<\/p>\n<p>According to Deloitte\u2019s guest experience survey, people are <b>13% more likely <\/b>to stay with the hotels that they feel understand them.<sup>3<\/sup><\/p>\n<p>Imagine the brand stickiness this can lead to. The next time your customer travels to Chicago and spots your boutique hotel chain, they\u2019ll most probably check in to get that extra personal touch.<\/p>\n<p>(Oh, and we used an example from the hospitality industry because hotel chains offer some of the world\u2019s best customer experiences by using data as a leverage.<sup>4<\/sup>)<\/p>\n<p>You might already be applying personalization to your marketing and sales campaigns. Why not do the same in your customer service?<\/p>\n<p>For instance, using <a href=\"https:\/\/www.ringcentral.com\/contact-center\/products.html\" target=\"_blank\" rel=\"noopener noreferrer\">RingCentral Contact Center\u2019s<\/a> CRM integrations and <a href=\"https:\/\/www.ringcentral.com\/contact-center\/analytics.html\">real-time analytics<\/a> and customizable reports, you can empower your team to not only handle customer issues faster, but also personalize your interactions to:<\/p>\n<p>From looking at specific insights like up-to-the-minute information about a customer who\u2019s calling, to generating a visual, customizable report data to assess your <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.ringcentral.com\/call-center.html\">call center<\/a>\u2019s overall performance over a specified period of time, the right tool can really help you amp up your customer experience.<\/p>\n<h3>3. Use big data to your advantage<\/h3>\n<p>Big data sounds like a big ask for small businesses. But it\u2019s really not\u2014especially when you think of the benefits.<\/p>\n<p>Big data analytics basically refers to the \u201cextremely large data sets that can be analyzed to reveal patterns, trends, and various insights.\u201d<sup>5<\/sup><\/p>\n<p>In a customer experience context, using big data allows you to tap into the vast data about your customers\u2019 behaviors to improve their experience.<\/p>\n<p>For instance, you might already be connected to your customers through various social media channels.<\/p>\n<p>And if you have a proactive customer service approach, you may be using tools like Kurrently and Mention to track your brand\u2019s mentions in social media and manage your brand reputation.<\/p>\n<p>Now, if you can connect your <a href=\"https:\/\/www.ringcentral.com\/contact-center\/products\/reporting.html\" target=\"_blank\" rel=\"noopener noreferrer\">contact center software<\/a> with one of these monitoring tools, you can respond to urgent customer questions and engage with prospects to offer real-time, <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/omnichannel-customer-service\/\" target=\"_blank\" rel=\"noopener noreferrer\">omnichannel customer service<\/a>:<\/p>\n<p><a href=\"https:\/\/www.ringcentral.com\/contact-center\/products\/reporting.html\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter wp-image-6846 size-medium\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/image4-132.png\" alt=\"RingCentral contact center analytics\" width=\"510\" height=\"400\" \/><\/a><\/p>\n<p>Amazon and Nike are two big brands that are leading the way in using big data to offer outstanding customer experiences.<\/p>\n<p>If you have ever shopped online with Amazon, you might remember how effective their recommendation is.<\/p>\n<p>And the recommendations get better every time you shop with Amazon\u2014the more Amazon\u2019s algorithm knows you, the better it can predict what you might be interested in buying.<\/p>\n<p>For instance, when you add Clorox toilet wand to your online shopping cart, Amazon recommends you similar other cleaning products, like a disinfecting bleach solution or a box of disposable plastic gloves.<\/p>\n<p>Amazon does this based on what other customers with strikingly-similar buying behavior like yours purchased in the past:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-6847\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/image7-71-1024x539.png\" alt=\"Amazon recommendations based on customers' buying behavior\" width=\"840\" height=\"442\" \/><\/p>\n<p>Amazon generates 35% of the company\u2019s annual sales purely from this use of predictive analysis in recommending similar items.<sup>6<\/sup><\/p>\n<p>This is all because Amazon knows how to work with data science\u2014a term that includes everything related to big data, artificial intelligence, machine learning, and deep learning.<\/p>\n<p>Nike also uses predictive analysis to help Nike Plus members create their own Nike-branded merchandise, an online service it calls <i>Nike By You.<\/i><sup>7<\/sup><\/p>\n<p>And although customers need to pay a premium to access the service, members spend <i>three times<\/i> more when they buy from Nike.com compared to regular Nike buyers.<sup>8<\/sup><\/p>\n<p>This is Nike\u2019s way of staying ahead of its customer expectations and offering their personalized services at scale.<\/p>\n<p>What do these two examples tell us?<\/p>\n<p>First, big data can help you take the customer experience to the next level. And that customers don\u2019t mind paying more for a customized experience.<\/p>\n<p>And big data isn\u2019t something that only global brands like Amazon or Nike can use. It\u2019s becoming increasingly popular for small businesses to cash on the yields of big data.<sup>9<\/sup><\/p>\n<p>Big data is all about connectivity. For example, you can use an affordable Internet of things (IoT) solution to enable your devices to talk to each other, control them remotely, and improve team productivity.<\/p>\n<p>Here\u2019s a common scenario that most small retail businesses can relate to.<\/p>\n<p>You can use IoT to ensure you have enough inventory in stock to meet customers\u2019 demands and offer their delightful shopping experiences tailored to their needs.<\/p>\n<p>Several small brands are using voice assistants like Siri or Alexa or chatbots to improve their customer service efficiency.<\/p>\n<p>They connect these technologies with other business tools such as customer relationship management (CRM) or help desk software to offer faster, more meaningful customer interactions while improving their agents\u2019 productivity.<\/p>\n<p>Remember the concept of Next Best Experience (NBX) we discussed towards the beginning of this article. Well, NBX is nothing but using the right mix of data at the right time (mostly, in real time) to offer a remarkable customer experience.<\/p>\n<h3>4. Hold one team accountable<\/h3>\n<p><i>But hold on! I thought you said that every team is responsible for the customer experience!\u00a0<\/i><\/p>\n<p>Yes, but hear us out.<\/p>\n<p>Customer experience has many different dimensions to it within the same business.<\/p>\n<p>The marketing and sales team look at it differently vs people from other functions such as IT or even HR, who think about CX from an employee engagement viewpoint.<\/p>\n<p>There\u2019s no doubt that all these functions are intrinsically tied to each other and they come together to form a wonderful collage of customer experience. And that is still true\u2014everyone should be <i>responsible<\/i> for the customer experience.<\/p>\n<p>But while it\u2019s great to have all hands on decks when it comes to creating a uniform customer experience, we\u2019d suggest that you hold one function <i>accountable<\/i> for it.<\/p>\n<p>And we\u2019re not talking about just your marketing or customer service team\u2014we recommend you set up a team that spans in its scope all the way from <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/brand-awareness\/\" target=\"_blank\" rel=\"noopener noreferrer\">brand awareness<\/a> to <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention<\/a>.<\/p>\n<p>Why? Because typically, each function\u2014product, marketing, and customer service\u2014views the customer experience through its own lens, which risks you missing out on the bigger picture. Each one also uses different metrics to measure their team\u2019s success.<\/p>\n<p>And that\u2019s a gaping hole in your CX strategy.<\/p>\n<p>So the best thing you can do to create a world-class customer experience\u2014if you have the resources\u2014is to have a Customer Experience Officer (CXO). Or, have someone from your leadership team double as a CX authority who can bridge the gap across the different teams.<\/p>\n<p>The role of a CXO is to align all functions within your brand\u2014from engineering to marketing to customer service\u2014under the same mission of delivering a happy customer experience.<\/p>\n<p>A CXO should be in charge of owning the CX data, creating an analytical harmony in your business and putting the data to good use.<\/p>\n<p>The CXO should champion not just the customers\u2019 expectations but also your employees\u2019 role in your brand\u2019s growth.<\/p>\n<p>After all, you need a single point of contact to own and run the VOC and share the insights with all business teams to make the most of it.<br \/>\n<a name=\"What metrics you can use to measure customer experience\"><\/a><\/p>\n<h2>3 metrics to measure customer experience<\/h2>\n<p>This circles back to what we discussed earlier in the post\u2014different teams view and measure CX in a way that\u2019s convenient for them.<\/p>\n<p>For example, marketing thinks an increase in the number of customers onboarding is a good indicator of an excellent customer experience.<\/p>\n<p>Sales might look at the lead-to-customer conversion ratio or average days to close as the most important metrics.<\/p>\n<p>And the customer service team may measure the success of good CX based on metrics like average time in queue or first call resolution.<\/p>\n<p>While there\u2019s nothing technically wrong with these teams measuring these metrics, none of them represent CX in its entirety, i.e., from the time a customer starts engaging with your brand (also known as customer\u2019s moment of truth) until the time they end their relationship with your business.<\/p>\n<p>That doesn\u2019t mean you can\u2019t measure CX\u2014you just need to identify the right metrics.<\/p>\n<h3>1. Customer lifetime value<\/h3>\n<p>Customer lifetime value is also known as CLV or CLTV. It calculates the estimated total dollar value that a customer will spend with you for as long as they buy from your brand.<\/p>\n<p>CLV is one of the most important metrics to measure CX because it captures other important CX metrics like brand loyalty and customer retention.<\/p>\n<p>Here\u2019s the formula to calculate CLV:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-6848\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/image6-88-1024x576.png\" alt=\"Customer lifetime value formula\" width=\"840\" height=\"473\" \/><\/p>\n<p>Good CX leads to improved CLV, and the best way to improve CLV is by constantly delighting your customers at every opportunity.<\/p>\n<p>You can also apply tactical ideas like offering incentive-based loyalty programs to customers or giving them discounts on a yearly subscription plan to increase CLV. But these ideas won\u2019t get you too far unless you offer a rewarding CX too.<\/p>\n<h3>2. Customer happiness<\/h3>\n<p>Unlike popular belief, measuring customer happiness isn\u2019t limited to customer service teams.<\/p>\n<p>Metrics such as CSAT, NPS, and CES are also good brand metrics to measure customer experience consistently across the board.<\/p>\n<p>Here\u2019s what each of them mean:<\/p>\n<h4>CSAT<\/h4>\n<p>CSAT is a way to measure customer satisfaction, typically on a scale of 1\u201310, where 1 signifies the customers are \u201cvery dissatisfied\u201d and 10 means they are \u201cvery satisfied.\u201d<\/p>\n<h4>NPS<\/h4>\n<p>NPS, or Net Promoter Score, is a single-metric survey used widely in customer experience programs. Its goal is to identify customers who are a) very vocal advocates of your brand (promoters), b) neutral customers, and c) customers who don\u2019t think highly of you.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-large wp-image-43176\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/04\/nps-1024x576.png\" alt=\"nps survey\" width=\"1024\" height=\"576\" \/><\/p>\n<p>For instance, product and marketing teams used NPS widely to <a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/customer-survey\/\" target=\"_blank\" rel=\"noopener noreferrer\">survey customers<\/a> to rate their liking of a product, feature, or service.<\/p>\n<h4>CES<\/h4>\n<p>Lastly, CES is used to measure how much effort a customer has to put in to perform a certain task, such as navigating your website, getting an issue resolved, processing a refund, and so on..<\/p>\n<p>To improve your CX strategy, you could trigger a survey like CSAT, NPS, or CES to your customers right after a customer service interaction with them.<\/p>\n<div class=\"tip\">\n<div class=\"tip-heading\"><b>\ud83d\udca1 Pro-tip: <\/b><\/div>\n<p>There isn\u2019t a hard and fast rule about what kinds of tools you should use to run these surveys. If you\u2019re low on budget, you can always use Google Forms or something like Typeform.<\/p>\n<\/div>\n<p>And if you score low on any of these metrics, follow up with customers to get a more detailed understanding of what caused their frustration. Apply that feedback to improve your CX.<\/p>\n<p>If you\u2019re specifically looking to improve on your customer experience, you might want to zero in on metrics such as <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/inbound-calling\" target=\"_blank\" rel=\"noopener noreferrer\">inbound calls<\/a>, answered calls, refused calls, <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/average-handle-time-call-center\/\" target=\"_blank\" rel=\"noopener noreferrer\">average handle time<\/a>, and average hold time.<\/p>\n<p>And RingCentral can help you there too. With its <a href=\"https:\/\/www.ringcentral.com\/ca\/en\/office\/features\/analytics-portal\/overview.html\" target=\"_blank\" rel=\"noopener noreferrer\">performance reports<\/a>, you can do things like:<\/p>\n<ul>\n<li>Drill down to specific call details through easy-to-read, visually-mapped reports.<\/li>\n<li>Keep a close tab on more than 30 important key performance indicators (for example, <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-service-kpi\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer service KPIs<\/a>) that are pre-built in the RingCentral platform.<\/li>\n<li>Set up daily, weekly, or monthly report updates automatically sent to your inbox.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/schedule-a-demo\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"aligncenter size-large wp-image-5611\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/07\/request-a-demo-banner-1024x364.png\" alt=\"\" width=\"840\" height=\"299\" \/><\/a><\/p>\n<h3>3. Customer churn<\/h3>\n<p>Churn goes by different names across industries.<\/p>\n<p>While ecommerce retailers measure the average rate of abandoned carts, SaaS businesses might measure metrics like revenue churn (how much revenue is lost) and logo churn (how many customers quit their subscription).<\/p>\n<p>Some businesses measure the opposite of churn (like the <a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention-rate\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention rate<\/a>). But this is more of a case of looking at the glass half empty versus half full.<\/p>\n<p>You can calculate the customer churn rate to find out the number or percentage of customers who stopped doing business with you.<\/p>\n<p>Start by deciding whether you want to measure the churn for a timeline of a month or a year, or something in between.<\/p>\n<p>You don\u2019t need a fancy tool to measure customer churn. Instead, just look at your numbers and do some simple math:<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-43312\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/04\/churn-rate.png\" alt=\"churn rate formula\" width=\"930\" height=\"700\" \/><\/p>\n<p>If you find your churn is happening at an alarming rate, you should dig deeper to understand the reason behind it.<\/p>\n<p>For instance, you can prompt an exit survey either on the page where customers cancel their orders or through an automated email. <a href=\"https:\/\/surveysparrow.com\/\" target=\"_blank\" rel=\"noopener\">SurveySparrow<\/a> is particularly effective here because it allows for omnichannel distribution; you can trigger a chat-style survey in-app, via SMS, or through WhatsApp. This ensures you capture critical insights into &#8216;why&#8217; churn is happening on the platform where the customer is most comfortable, significantly increasing your chances.<\/p>\n<h2>Let your customer experience analytics guide your business<\/h2>\n<p>Data is just numbers\u2014it isn\u2019t perfect. When you leave data idle on the table without direction, every team will interpret it in their own terms. And that creates more harm than good for your brand.<\/p>\n<p>When your sales team sees customers as just accounts and metrics, it means they aren\u2019t tapping into the sentiment of human emotions in their customers. (It\u2019s also an indication that your CX is likely to suffer.)<\/p>\n<p>But analyzing the right data and prioritizing the right metrics alone can\u2019t help you master customer relationships either.<\/p>\n<p><i>Blend<\/i> the quantitative data in your customer experience analytics with qualitative findings and anecdotes to weave together a memorable customer experience. Ready to start crafting a world-class customer experience?<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<div style=\"font-size: 14px\">\n<p><sup>1<\/sup> forrester.com\/report\/Come+Together+Right+Now+To+Deliver+The+Next+Best+Experience\/-\/E-RES143255<\/p>\n<p><sup>2<\/sup> cmswire.com\/customer-experience\/5-voice-of-the-customer-program-examples-in-the-wild\/<\/p>\n<p><sup>3<\/sup> deloitte.wsj.com\/cmo\/2018\/06\/25\/checking-in-on-the-next-gen-hotel-guest-experience\/<\/p>\n<p><sup>4<\/sup> analyticsindiamag.com\/how-analytics-can-help-the-hospitality-industry\/<\/p>\n<p><sup>5<\/sup> igi-global.com\/dictionary\/data-knowledge-and-intelligence\/39008<\/p>\n<p><sup>6<\/sup> https:\/\/rejoiner.com\/resources\/amazon-recommendations-secret-selling-online\/<\/p>\n<p><sup>7<\/sup> nike.com\/in\/nike-by-you<\/p>\n<p><sup>8<\/sup> medium.com\/swlh\/how-nike-uses-predictive-analytics-821907a90187<\/p>\n<p><sup>9<\/sup> insidebigdata.com\/2019\/10\/13\/accessible-and-affordable-big-data-for-small-business<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Running a business is like running a triathlon for a living. You have to put in a lot of planning, preparation, and hard work just to keep going. And if you\u2019re really serious about it\u2014if you want to outdo your competition\u2014you will most likely have a personal trainer or advisor to consult with. Every now &#8230;<\/p>\n","protected":false},"author":29,"featured_media":42467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901,4],"tags":[743,18288,18289,18290,18291],"class_list":["post-42460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","category-customer-experience","tag-customer-experience","tag-customer-experience-analytics","tag-customer-experience-metrics","tag-cx-analytics","tag-cx-metrics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Customer experience analytics: CSAT, NPS, CES, oh my | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"CSAT. NPS. CES. There are lots of acronyms in customer service analytics. 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