As the age of the customer continues to influence the shape and strategy of customer interactions, customer experience (CX) data such as Net Promoter Score (NPS®), Customer Effort Score (CES), and Customer Satisfaction (CSAT) inform strategic discussions across industries and verticals. It’s no wonder that this has become such a hot topic, especially when you consider that Forrester asserts a 10% improvement in a company’s customer experience score can translate into more than $1 billion in increased revenue.
This presents an interesting challenge to Customer Success professionals, a community whose metrics have traditionally been defined by the sales sphere of influence (chief among them: renewals, upsells, and churn). The objective to offset customer acquisition costs, which in SaaS alone averaged $1.15/$1.00 of revenue in 2017, make the Customer Success function of paramount importance to any organization.
A 10% improvement in a company’s customer experience score can translate into more than $1 billion in increased revenue. – Forrester
However, with our success and service teams focused on retaining and expanding existing contracts at a lower rate than the acquisition cost, ownership of customer experience metrics such as NPS®, CSAT, and CES can be ambiguous. Between the daily influx of customer requests, solutions development, and general account management, it can be especially daunting to architect a comprehensive CX strategy, let alone collect and analyze the data.
Even when you have the resources to allocate to these initiatives, it can be difficult to tell which metric best suits your organization. In particular, the Customer Success community is debating the efficacy of CES versus NPS to accurately predict consumer behavior. At MindTouch, we developed a strategy to measure sentiment at each critical touchpoint along the customer journey by applying the approach best suited to the interaction. We use Wootric to collect CX data and integrate it with our systems of record.
Here’s how our Customer Advocacy team does it
- CSAT – By measuring the support experience after cases are closed and satisfaction with the delivery of service engagements, we can identify how our customers feel about working with MindTouch at different stages of their journey. This data is particularly critical for new customers, as we know that the first year of any contract presents the highest risk.
- CES – Understanding the effort that our customers expend for self-service support helps us architect a better ticket deflection strategy and provides unique insights into usability. CES measured at launch also helps predict the likelihood that a customer will be amenable to a new deployment in the future.
- NPS – Responses to an NPS campaign highlight patterns that aren’t always obvious in data collected after single experiences, such as customer effort or customer satisfaction. Our NPS results measure the effectiveness of our organizational strategy. When coupled with qualitative interviews performed with each respondent, we can gather insight into patterns that were previously hidden (such as why one vintage of customers may have been more successful than others).
What we’ve found is that not only do these data points tell a story about the customer’s experience over time, but they also point to high effort or low satisfaction hot spots within an organization, which when addressed early can prevent future risk of churn. Survey response rates may even help inform you about a customer’s engagement pattern, serving as an early warning for an account in trouble.
At MindTouch, we developed a strategy to measure sentiment at each critical touchpoint along the customer journey by applying the approach best suited to the interaction.
The importance of CX data
When reports indicate that more than half of your lost accounts can result exclusively from a poor user experience, the importance of using CX data to inform your most strategic account decisions becomes quite clear. This self-reported data also serves as a system of checks and balances. It gives insights into improving processes and procedures that may not be functioning quite as well as you might have thought. By removing this “researcher bias,” we can deliver upon the expectation for an experience as exceptional as our product.