Have you seen how customer experience is changing?
People expect more, and they share their experiences faster than ever. At the same time, companies are using more automation and AI to talk to customers.
It might seem odd to use tech for something so crucial. But if done right, it can offer a better experience for less money.
Automation and AI bring new opportunities and hurdles for makers and their sellers. They can make things run smoother and grow bigger — for less cost — but ensuring they meet and exceed customer expectations requires flexible systems, better measurement, and consistent feedback loops.
The results are happier customers, lower customer acquisition costs (CAC), and more profit.
What is customer experience?
Let’s first define customer experience.
It’s every time someone interacts with a company, from the first hello to help after buying. Factors like product quality, perceived value, service responsiveness, and overall satisfaction are all included.
Nowadays, customer experience sets companies apart. Every step, from meeting a brand to getting help after buying, shapes how people see and stick with the company.
Measuring Customer Experience
Customer experience measurement isn’t only about gauging satisfaction — it’s about knowing and improving all parts of the customer journey. Using scores like Net Promoter Score® and satisfaction rates, plus looking at churn rate and how fast we reply, helps us learn what customers want.
Insights like these make our operations better and build stronger ties with customers, which means they’ll stay loyal and tell others about us.
Now, let’s look at the best ways to measure customer experience. By focusing on customers and using data that tells us what to do, your business can lower the costs to attract customers, make relationships last, and keep making money in today’s market.
We’ve broken down the top ways to measure customer experience using simple data and arithmetic.
Net Promotor Score®
Have you ever received a survey asking, “How likely are you to tell your friends about our product or service (on a scale of 1-10)?”
Companies use this to determine if customers liked or disliked their experience and if they’ll talk well or poorly about them.
People who score from 1-6 are called detractors. Those who give a 7 or 8 are passives – they’re okay but not thrilled. And those who score 9 or 10 are promoters. To get your net promoter score, take the percentage of promoters and subtract the percentage of detractors.
NPS = % of promoters – % of detractors
The higher the score, the better it is!
Customer Satisfaction
Customer satisfaction scores are even simpler. Companies send a 1-question survey following an experience with customer support.
For example, “Was this helpful?” Customers can answer “yes” or “no” and elaborate in a comment box.
The higher the percentage of those who answer “yes” or similarly, the better.
Churn
Businesses work hard to keep customers because it costs less to hold on to an existing one than to get a new one.
Here’s a simple way to figure out churn:
Look at how many customers you have at the start of the month. How many are still there at the end? (Exclude new customers that started in that month.) Say you start with 100 and have 90 left at the end. You’ve lost 10. Your churn rate is 10%.
To find your churn, divide the number of lost customers by the total number at the start, then multiply by 100.
Remember, the lower the churn percentage, the better.
CAC
Customer Acquisition Cost (CAC) is your cost to acquire a new customer.
To figure out the cost of getting each customer, think about all your sales and marketing expenses. This means counting your team’s work, the tools you use, and the money spent on ads. The pay for social media posts is just as important as your ad spending.
Total costs to get customers divided by the number of customers you get during the same period = cost per customer.
For example, if Lee spent $10 to market her cookie stand and got ten people to buy her product in 1 week, her cost of acquisition for that week is $1.00.
We’re aiming for small numbers in this case!
Number of Touchpoints
This metric measures how often your business interacts with a customer in a set time frame.
Track how often customer service, marketing, and sales reach out to a customer within this time.
Too much contact can annoy customers. They might stop reading your emails or unfollow you online. However, too little contact can make them feel ignored, or they might forget about your business.
Aim for a balance that lowers churn and boosts customer satisfaction.
First Response Time
Customers usually want their problems fixed fast. They’re happier if they don’t have to wait on hold or for an email reply.
Look at your customer service data to find out this time.
Here’s how: Ticket submission time – first response time = First Response Time (FRT)
Aim for a low number, but remember the time can change based on whether the customer calls, chats live, or emails.
First Contact Resolution
How many customer issues do you fix right away? People don’t like calling customer support. If they’re passed from person to person or have to call again later, their chances of a happy experience plummet.
Here’s how to measure first contact resolution:
Total number of issues solved on first contact divided by the total number of issues = first contact resolution (FCR)
You want a high FCR rate!
Bonus: Average Resolution Time
If you want to measure how well your customer service team does, this is an excellent formula.
Total time spent fixing all issues in an 8-hour shift divided by the number of issues fixed = average resolution time
There are two things to remember:
First, fewer issues mean your customers are running into fewer problems.
Second, if your team struggles with certain issues, you can train them more or find and fix the root problem in your business.
Your Next Steps
You’re on the brink of something great for your business, and it’s time to dive in! Measuring customer experience is more than a task — it’s your secret weapon to understanding and serving your customers like never before. Kick things off by applying the metrics we’ve covered, and you’ll unlock insights that can transform your business.
But why stop there? Take your customer connection to the next level with Atmosphere. It’s your all-in-one CRM solution designed to leverage automation and AI to help you simplify, amplify, and measure every interaction. Ready to see it in action? Get started with Atmosphere today and discover how it can revolutionize your customer relationships.
And if you want a guided tour of how Atmosphere can work specifically for your business, we’ve got you covered. Schedule a walkthrough, and we’ll show you how to harness Atmosphere’s power to meet your unique needs.
Implement these strategies, embrace the right tools, and watch as your business grows stronger through exceptional customer experiences. Let’s make it happen — because you and your customers deserve the best.
About the Author
Jason Otis is the president of Perk Brands and founder of Built for Home. Perk Brands is a digital marketing agency that partners with home product manufacturers to make their products easy to find and buy. Built for Home is a community of home product manufacturers and a resource for buyers to find products that make their lives better at home.
