What Customer Experience KPIs should your business measure?
Listening to customers brings businesses one step closer to putting actual KPIs on Customer Happiness.
Customer Experience is a key driver in business growth, and every large company nowadays can boast about having a CCO or a CHO (Customer Happiness Officer). CX is an investment, and as such, it needs to offer a return. But how do companies measure the success of their initiatives?
Customer Experience KPIs
Retention, Effort, Abandonment – all these vastly popular measures sum up the company’s ability to please customers. Noticed something? They all work with a massive delay. It can be months, or even quarters before the execs realise they took a wrong CX course. Additionally, with many programs aimed at satisfying customers running simultaneously, businesses struggle to understand which measures work, and which ones are just money drains. The industry is in need of a quicker, more accurate ways of measuring KPIs.
NPS is not enough
For a long time, the only toolset aimed at measuring customers’ feelings accessible to CX professionals was the legendary Net Promoter SCore. According to CX guru — Shep Hyken, NPS, while very useful doesn’t deliver information about the drivers behind it. As Shep writes in his 2016 Forbes article, it’s too vague to give the decision-makers insights necessary to decide which processes result in customer giving a ten or a one. With the arrival of conversation analytics, it’s becoming increasingly simple to track detailed customer stories and put a number on each interaction.
Access to Customer Experience KPIs is one of the reasons why more and more companies onboarding some iteration of voice analytics.
Everyone wants to analyse voice
According to the report by Research and Markets, the number of businesses analysing recordings of customer calls will boom in the next five years. The industry related to analysing voice is set to grow from 589.2 Million USD in 2015 to to 1.6 billion USD in 2020. This sudden growth is driven by the feedback hunger, but also by the burning need to put measurable objectives in place for the costly CX initiatives.
Conversation Analytics turns ephemeric CX elements, such as emotion or sentiment into hard numbers.
Call recordings or live calls run through speech processing platform can reveal all the information missing from other sources, such as NPS. It takes note of hundreds of speech markers to name and assigns a feeling to every topic discussed. Measuring the real voice of the customer ends the confusion; business can finally discover which parts of their process, touch points, services or even representatives drive positive or negative reactions.
Companies are happy to pay top dollar to find out what the customers are saying and how they are saying it because it allows them to apply same rules to CX as to any other department or campaign, assign their budgets better and see faster results.
Conversation Analytics KPIs – Examples
With access to voice data CCOs can introduce specific and actionable goals:
- An energy provider can set a goal of decreasing the number of calls related to bill confusion from 400 a month to 200.
- An insurance company can aim to shorten the percentage of silence during phone conversations (known to be one of the strongest negative NPS drivers) from 20% to 15%.
- Finally, a financial institution can look to limit the number of calls during which customer emotion worsens, from 8% to 4%.
Customer Experience KPIs measured with conversation analytics have a twofold benefit: These hard metrics make the CCOs accountable in a very pragmatic way. They also allow companies to track the exact effect their improvements have on the end customer.
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