Your September article
CSAT, NPS and CES Metrics: Monitor and Improve your Customer Satisfaction and Loyalty
​​
If you want to have constant and valuable insights on the quality of your clients’ satisfaction and loyalty in order to bring your customer experience to the next level, CSAT, NPS and CES are the best metrics to do so. Below are more information about these key metrics and how to effectively use them.
​​
What each metric is about?
​​
✅ CSAT (Customer Satisfaction Score) gives you insights on satisfaction with specific interactions and more generally the company's products or services
​​
✅ NPS (Net Promotion Score) gives you insights on the loyalty and advocacy your customers have for your brand​
​
✅ CES (Customer Effort Score) is a metric that measures how much effort a customer has to go through to get a request fulfilled or an issue resolved
​​
CSAT: What it is used for? How to calculate it and what to do from it?
​​
CSAT: What is it used for?
​​
CSAT simply standing for "customer satisfaction" is a key indicator which is measured by asking "How would you rate your satisfaction with the service/products you received?" or another similar question.
​
The question will include the following 1 to 5 scale (1 to 10 ranking being even better!) as detailed here: Very unsatisfied / Unsatisfied / Not satisfied nor dissatisfied / Satisfied / Very satisfied
​
And a comment section below the answer to let clients explain their choice.
​​​
How to calculate CSAT?
​​
✅ Only responses 4 and 5 (or 7, 8 and 9 for a 1 to 10 scale) are included in the calculation as "satisfied customers"
​
✅ Calculation: Number of "satisfied customers" / Number of survey responses) x 100 = CSAT result (%)
​​
What to do from it?
​​
Improving internally based on the insights you have. The key being also to follow-up with clients based on the replies you receive to get as much information as possible!
​​​
NPS: What it is used for? How to calculate it and what to do from it?​
​​
NPS: What is it used for?
​​
Net promoter score (NPS) is a metric based on the answers received from clients when asking them about the likelihood that they would recommend your company, product or a service to others.
​
Respondents give a rating between 0 (not at all likely) and 10 (extremely likely) and depending on their responses, you will have your NPS score and know how likely they are to promote your brand.
​
You have 3 different categories of clients depending on the answers they give you:
-
Promoters: Customers giving you a score of 9 or 10 which are considered as loyal and who will make the effort to naturally promote your brand
-
Passive customers: Customers giving you a 7 or 8 which are considered as satisfied but not satisfied enough to stand as brand ambassadors and go that extra mile
-
Detractors: Customers giving you a score from 0 to 6 which are considered as unhappy clients and very unlikely to buy from you again. On top of not referring you to no one, they may also discourage other people they know to do so
​​​
How to calculate NPS?
​​
Percentage of promoters – percentage of detractors = NPS
​
For example, if 50% of respondents are Promoters, 10% are Detractors, and 40% are passives, your NPS would be 50 – 10 = 40%. Turning detractors into promoters can impact NPS and improve customer loyalty.
​​
What to do from it?
​​
On top of the overall loyalty and advocacy your customers have for your brand in general, you can use NPS to measure a lot of aspects of your business by orienting your questions around specific products, the performance of your team or a specific offer.
​
The focus of NPS is to get accurate and detailed insights on the why they would or would (probably) not promote your brand (or be willing to give you bad publicity). Following-up with your customers based on the answers they give is definitely the key part if you want to get enough information in order to improve moving forward. The ultimate goal being to turn all your detractors (and passive customers) into promoters!
​
CES: What it is used for? How to calculate it and what to do from it?​
​​
CES: What is it used for?
​​
Customer effort score is a metric that measures how much effort a customer has to go through to get a request fulfilled or an issue resolved.
​
Even though CES is a great metric for loyalty, it is mostly used to know where your customers are struggling/unhappy and what to improve specifically.
​​​
How to calculate CES?
​​
Ranking goes from 1 (very difficult) to 7 (very easy).
​
Calculation: Total number of customers who agree that their interaction was easy divided by the total number of responses.
​
For example, if 70 customers out of 100 rated you 5, 6, or 7, your CES would be 70%.
​​
What to do from it?
​​
CES surveys should be used immediately after an interaction or specific touchpoint you want to have feedback on.
​
And the good thing is, you don't even need to do it in a formal way and your team can definitely help you to get these valuable insights.
​
For instance, when a customer interacts with team members, they can simply ask them how easy it was to get their issue resolved can indicate if they’ll return as a customer. So you can improve your customer experience and loyalty moving forward.
​
The key focus from these 3 metrics is definitely about what you do from it by 1 getting additional information on the “why” behind the “what” and 2 implement specific actions to improve these metrics moving forward. So you improve the customer experience delivered while turning your clients into real brand ambassadors.
​
Need more support in order to bring your business performance to the next level with improved customer satisfaction and loyalty? Feel free to reach out and book your free discovery call right below.
Feel free also to try your new online questionnaire and get a detailed report of how well your customer loyalty is working for you.​