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And how happy are YOUR customers?

Published by Kate Apking Kate Apking · June 19, 2019
And how happy are YOUR customers?


In our previous article we’ve canvassed a crucial role that customer experience plays in business. To maintain its high standards in the competitive market, it is important to figure out how to track and benchmark customer sarisfaction / experience. 

And since (let’s be honest) we, at TeamGuru, are “little” obsessed with metrics, I would like to point out few dominant indicators that play essential role in answering the main questions such as ”What are the Customer Experience Metrics" and "How to measure them?”.

1.    Net Promoter Score (NPS)

NPS is a management tool used to measure loyalty of your customers. It gives you a percentage of how many customers would or wouldn’t recommend your product to their families, friends and other people that are associated with (in today’s social media world, that is pretty significant and exciting number).

Its calculation is based on responses to a single question: “How likely is it that you would recommend our company/product/service to a friend or colleague?” Generally customers are prompt to choose score and to rate your company on a scale from 0 to 10, and according to their choices they are divided between Promoters (9 to 10 score), Passives (7 and 8), and Detractors (0 to 6). Based on that, the NPS formula is:

NPS = % Promoters – % Detractors (Passives count toward the total number of respondents).                                                                                                                                                                                                                      

 CX metrics

2.    Customer SATisfaction (CSAT)

While NPS is based on costumer’s overall interaction with a company, CSAT is the average satisfaction score based on specific customer’s experience with its product and service. The rating scale is from “Not satisfied at all” to “Very satisfied”.  The list of questions is endless. To get substantive conclusions and to optimize your survey, your questions should be detailed and profound. 

3.    Customer effort score (CES)

CES helps to determine and measure a customer’s effort that is put into a certain interaction with a company, using a five-point scale of answering options from “Very Difficult” to “Very Easy”. 

Its post-interaction surveys questions target how much effort is needed from a customer to accomplish a task (finding a product, returning a product etc.)? CES is taking a different angle from previous two measures, and its focal point is aimed to solve costumer’s problems quickly, and to be easy doing business with. 

NPS = loyalty     CSAT=satisfaction     CES=how much effort

4.    Customer churn rate

Customer churn is the percentage of customers that your company looses during a certain time frame. These customers either stop using your recurring service or don’t make any repeat purchase of your product or service. This metric is calculated by dividing the total number of lost customers by the total number of active customers for specific time period. Even though this metric measures your failures, it helps you to ensure long-term success in a future. It is important to acknowledge this rate because it is cheaper to retain existing customers than acquire new ones. 

5.    First response & average handling time

First response indicates simply how long a customer has to wait before being helped. This metric measures the average amount of time it takes for a customer to be contacted by a customer support representative regarding an issue (from time the support ticket is placed to the time the first response is received). 

Average handling time reports average duration of contact between customer and support service agent regarding an issue. This metric calculation takes into account a total of all time spent interacting with customers regarding their concern, and it is calculated as an average of time it takes to fully resolve a customer issue from start to finish.

Speed plays an important factor for both metrics and is significant especially combined with efficiency (how many interactions between customer and support are needed to resolve the issue?).

Every business is different and needs to decide which metrics are relevant and important to them. Ultimately each company needs to use the right CX metric at the right point in the customer journey to get a correct and valuable data. 

How do you measure your customer experience and what metrics would you recommend to collect for your line of business? 



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