3 Best Customer Feedback Metrics For 2020

Blog: NASSCOM Official Blog

You do efforts to please your customers and satisfy their needs, but still having lots of unsatisfied customers that cost your businesses? Well, you can overcome this problem by measuring customer satisfaction. This practice helps you to gain a lot of information about your customers including their preferences and buying behavior.

You can measure your customer satisfaction by taking Customer Feedback. It is a systematic process that enables your customers to pen down their reviews and opinions about your product/service. They give you ratings and feedback on the basis of the experience they encountered with your interaction, and your product/service.

When it comes to acquiring accurate customer feedback, we have 3 leading Customer Feedback Metrics that not only enable you to gauge customer satisfaction but also provide you with the chance to know your customers’ behavior in detail.

3 Best Customer Feedback Metrics

Net Promoter Score (NPS)
Customer Satisfaction Score (CSAT)
Customer Satisfaction Customer Effort Score (CES)

What is Customer Feedback Metrics?

Customer feedback metrics refers to as a measuring benchmark that enables the Surveyor to quantitatively evaluate the online feedback. The 3 customer feedback metrics we’ve mentioned above will allow you to evaluate customer perception towards your brand but also provide you with the accurate data to act upon.

Benefits of Customer Feedback Metrics

Apart from feedback collection, customer feedback metrics offer lots of benefits:

High response rate: Metrics like NPS, CSAT, and CES have made quick and easy for customers to submit feedback. These metrics help you to choose the best and response-driven questions that can boost the response rate.
Easy Data Analysis: In the conventional form of feedback, evaluating and quantifying data is not at all easy. Customer feedback metrics allow representing your surveys into charts and dashboards. This helps you to evaluate your customer feedback data quickly.
Get to know about feedback trends: Thanks to the feedback metrics that have transformed the ways of assessing data. With the advent of customer feedback metrics, Surveyors can now quickly identify feedback trends.

Customer Feedback Metrics

There are lots of customer feedback metrics you can use within your feedback dashboard. Here, are covering 3 Best Customer Feedback Metrics. Always consider your survey goals.

1. Net Promoter Score (NPS)

The Net Promoter Score (NPS) is an industry-recognized metric that was incorporated by the leading management-consulting firm Bain & Company. NPS is being widely used to determine the loyalty of a firm’s customer relationships.

With NPS, you get to know about the willingness of customers to recommend your product/service or your company as a brand. This helps you to benchmark the satisfaction level of your customers and predict their purchase and referral behavior.

The Net Promoter Score comes from the simple NPS question –“How likely would you be to recommend our products/services to a friend?”. NPS ranges from -100 to 100 and customers range their willingness of recommendation on the scale of 0-10. Based on their responses, customers will be segregated into three categories.

Promoters – 9-10 Score – They likely recommend your brand to their friends and family.
Detractors – 0-6 Score – They denied to recommend you as a brand and your product/service to other potential buyers.
Passives – 7-8 Score – They are moderately satisfied and are not enthusiastic enough to recommend your product/service.

Net Promoter Score Formula

To calculate the Net Promoter Score, we use a simple NPS formula where we subtract the total percentage of Detractors from the percentage of Promoters to determine your overall Net Promoter Score. This number can range from -100 to 100.

2. Customer Satisfaction Score (CSAT)

Happy customers are considered to be loyal customers. But it is important for your business to know what your happy customers feel about you. Here Customer Satisfaction Score (CSAT) metric enters the game.

Customer Satisfaction Score (CSAT) is widely used to measure customer satisfaction with a business, purchase, or interaction. CSAT is simply calculated from the simple question – “How satisfied were you with your experience?” Customers range their satisfaction level either on the scale ranges 1 – 3, 1 – 5, or 1 – 10 or on the scale of agree/disagree scales, stars or smileys.

When Should You Use the CSAT?

The customer satisfaction score metric enables you to capture customers’ level of satisfaction immediately after a specific session of interaction. That’s why CSAT is also known as Transactional Metric. Customer satisfaction score lets you know about what customers think of your product or service, or changes to a product or service.

You can use CSAT for:

Key customer touchpoints and customer journey moments
Assessing customer satisfaction with product updates
Customer support interactions
Sales interactions

Apart from gauging customer satisfaction, Customer Satisfaction Score metric is identified as an easy way to close the loop on customer interaction.

3. Customer Efforts Score (CES)

To improve the customer experience, it is important for you to track the levels of effort your customers put to achieve their goals. Here Customer Effort Score enters into play. CES metric helps you to measure how much effort your customers have to put into a certain interaction with you.

Why You Need Customer Effort Score Metric

Poor customer experience increases customer efforts as a result either they leave the website or they provide negative reviews. So, it is important for you to gauge the level of effort of your customers. Furthermore, this helps you to improve customer loyalty for your brand.

CES is calculated by asking a simple question “How easy was it to interact with us?” In the survey, customers are provided with the scale of Strongly Disagree, Neutral, and Strongly Agree to choose according to the level of effort they put.

Leverage Customer Feedback Metrics For Better Business Results

If you want to take your business a level ahead of your competitors, then you need to keep your customers happy and satisfied. To achieve this you need customer feedback metrics. All 3 metrics are actionable and help you to improve your business and make it more customer-centric. Thus, there are immeasurable benefits of using all the above metrics.

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