While some startups focus on delivering a minimum viable product (MPV), the world-renowned brewery BrewDog has taken a completely opposite approach: developing the best beers in the world right from the start.
This is one of the most poignant sections in the Harvard Business Review article, titled: ‘Do not start a business, start a crusade’, in which different ways of measuring customer experience in your business are discussed.
The ‘customer experience with soul’, as the brewers at BrewDog define it, is their approach to this current theme.
In a speech on the subject at the London School of Economics, James Watt, co-founder of BrewDog, described the importance of Equity Punks, the customer community that is deeply involved in the company’s culture:
“We involve our equity punks in the decisions we make, the way we grow, the way we do business. They help us choose which beers we have to develop, to decide the cities where we should open new bars.”
With so many different approaches, from the well thought out minimalist and careful MPV, to BrewDog’s participatory punk rant, how do you know if the way you’re measuring customer experience is on the right track?
Relax, open a beer and check out the 7 most popular ways of measuring customer experience on the market.
Measuring Customer Experience: KPIs to Direct Your Business
You should tailor all KPI’s for measuring customer experience to the needs of your business. But we hope to inspire you to discover your company’s ideal method with these commonly used methods.
Net Promoter Score
One of the most well-known and effective ways of measuring customer experience is the Net Promoter Score. Therefore, it could be missing from our list of KPIs for measuring customer experience.
Its methodology is based on doing a customer satisfaction survey which can be summarized in 1 question:
On a scale of 0 to 10, how likely are you to recommend our company to a friend?
Depending on the answers, you’ll find out if you have a network of detractors from your business or brand promoters.
Also check out: Customer Satisfaction Survey Questions: What to consider
Measuring customer experience: E-commerce KPIs
If the Net Promoter Score can be considered an excellent KPI for measuring customer experience, both for companies with physical outlets and for internet focused companies, the KPIs presented below focus on the customer experience when using your site, specifically in e-commerce.
Because of the ease of measuring these metrics, you don’t need to exaggerate the amount you are going to analyze in your business, by always focusing on those that best suit you.
Let’s look at some of the most used KPIs for measuring customer experience on the internet:
These are the purchases customers make through your site. It’s important to remember that you shouldn’t only analyze the number of sales made in a period, but its relation to the steps in the sales funnel.
So if 100,000 people access your site and 1,000 make a purchase, this could be good depending on your industry.
But the goal of this KPI goes far beyond that.
Let’s say that of this 100 thousand, only 4 thousand are interested in seeing product details in your virtual store. And that of these 4 thousand, 1 thousand convert into purchases.
By looking at these KPI’s for measuring customer experience carefully, it becomes apparent that your online store is unattractive, with only 4% viewing product details.
However, the description of the products, their images and other factors presented when clicking on a specific product raised their conversion KPI at this stage of the funnel to 25%, indicating that this phase is going well.
So you’ve been able to figure out where you need to improve your e-commerce, through analyzing these KPIs.
You should use this type of analysis in all the other presented KPIs.
Do customers, in percentage terms, remain loyal to your business from one period to the next? This metric makes more sense for companies that have recurring revenue, that is, their customers pay monthly fees or signatures.
Another KPI for measuring customer experience closely related to SaaS companies and recurring receipts. The Churn Rate is the opposite of retention: the percentage of customers who stopped paying for their service at the end of a period, in relation to the beginning of the analyzed period.
If you want to understand if your customer’s experience on your site is enjoyable, measuring how much time they spend navigating on it on average is a great idea.
Abandoned shopping cart:
Your customer entered the site, researched several products, decided to buy, and at the time of payment, abandoned their cart.
Getting to know this percentage is important in order to find out if it’s time to change your payment system, add new payment options, and other similar options.
Time to resolve complaints:
This KPI is related to customer service, your SAC service or online support. Remember that after sales support is part of the shopping experience. Measuring the agility in helping your customers at this time is very important.
Providing a good experience to your customers is a matter of modeling appropriate processes.