Key Metrics for Improving the Customer Experience

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Key Metrics for Improving the Customer Experience

Key Metrics for Improving the Customer Experience in the Digital World

Current Landscape: Customer experience is becoming one of the most important aspects of digital transformation initiatives these days. Yet, many executives are still unclear about how they should measure customer experience. Here are four key metrics that can help organizations understand how to improve the customer experience. It isn’t just about being efficient any more. It now has to be effective if it’s going to have an impact on the customer, and at last we can measure this – and optimise it – by calculating key metrics for improving the customer experience in the Digital world. To improve the Customer Experience in the Digital World, companies are shifting their attention to the digital ecosystem that has amassed at their fingertips for customer satisfaction.

Key metrics for improving the customer experience


Customer experience is an integral part of the digital world. It refers to delivering a seamless experience to customers regardless of which medium they’ve chosen to interact with your business. The aim is to enable them to achieve what they want easily and quickly using the appropriate channels, regardless of where they are or how they like to access your services


Companies providing good customer experience get their customers coming back time and again for more interactions willing to spend more. Hence, this isn’t surprising how companies are investing in customer experience platforms to attract, engage, and retain existing customers.


The long-term effectiveness of customer experience initiatives requires measuring results. Companies spend large sums of money on improving customer experiences so they know how well they are doing.


Although there are many KPIs applicable to CX environments, it is easy to feel overwhelmed. Taking a step back from the total customer experience and thinking about how it contributes to business success, one might consider breaking down the experience into more little insights based on each company’s specific goals and different customer journey stages. With this approach, you can identify which KPIs are most beneficial for measuring your performance.


Customer attraction, Customer engagement and customer retention are three key customer experience aspects, so start by benchmarking your performance on these key KPIs: 


Customer Attraction

Marketing campaign effectiveness: ROI (return on investment) is a key performance indicator that enables you to evaluate the growth rate of your business. The goal of marketing is no longer to advertise; it is to reflect the voice of the customer in your business and satisfy their needs. Effective marketing campaigns reflect better customer experience.

Direct traffic: A CX metric based on direct traffic is derived from any interaction directly associated with a specific company initially intended to drive traffic. Direct traffic generates opportunities for future growth and goes hand in hand with brand awareness.


Customer Engagement

Pages per visit: It is a good indication of your content’s relevance and appeal to your visitors when they spend so much time on your site. Brands need to make sure their websites help visitors stay interested and learn more about their products and brands.

Customer Acquisition Rate: Maintaining engagement and moving prospects toward a buying decision will be far easier if you provide better customer experience throughout the customer journey. Your marketing and sales campaigns will be more successful if your customer acquisition rates are high.

Conversion rate: The customer experience influences the buying process. Conversion rates are boosted at every touchpoint when the buyer journey is optimized. Customers are encouraged by the experience to move along the customer funnel due to increased conversion rates.

Cart abandonment rate: By Baymard Institute’s estimation, 68.53% of people abandon their shopping carts. A redesign of the experience can solve many of these causes for cart abandonment. Consider implementing a chatbot or embedded messaging on your checkout page if you see potential customers abandoning their shopping carts due to lingering questions, so they can contact you without leaving the experience. An increased number of repeat customers and fewer cart abandonment rates are indicators of well-designed user experiences.

The customer lifecycle is changing, so are the needs. The last few years has given us many technologies, which helps to connect with our audiences in more efficient ways. One out of many of them is AI & ML technology which is helping brands improve customer experience vigorously. In order to be more successful in the digital realm, you will need to keep a keen eye on the following key metrics. By combining all of these into one report, you can get a clear image of what’s going on. If a company learns how to use AI/ML technologies properly, they can significantly improve the customer’s experience without additional efforts.

Customer experience is an up-and-coming buzzword that marketers are flocking to because it draws attention to delivering value across all interactions with customers, including their first touch point with your business. The best experiences are ones which are “Hyper Personalized” – where the message is so relevant to the customer, so tailored for them, that it feels tailor made just for them.


Customer Retention

Customer churn rate: In marketing, churn is defined as the percentage of customers who discontinue subscriptions over a given time frame. Increasing customer retention and revenue streams begin with reducing churn rates. A low churn rate reveals a high level of customer satisfaction and, therefore, superior customer service.

Net Promoter Score: You can measure your customer satisfaction by looking at your Net Promoter Score (NPS). When your NPS is low, your company needs to work harder to influence your customers’ opinions. A “Voice of the Customer” program is an excellent way to incorporate the views of your customers into your products and services to boost your Net Promoter Scores.

Customer Satisfaction: CSAT, or Customer Satisfaction Score, is yet another way to measure customer satisfaction. You have a customer-centric culture when you receive high satisfaction scores, which indicates that your company meets or exceeds the expectations of its customers. Studies have also found that customers satisfied with the experience are more likely to stay with the company.

Average Resolution Time: This KPI measures how long a customer care agent takes to resolve a problem. Customer satisfaction is directly correlated with this customer support metric, which reflects the efficiency of your team. According to 73% of customers, a satisfying customer service experience is topped by quick resolutions.

Measuring Customer Experience: A comprehensive approach that incorporates multiple customer experience metrics may be the most beneficial method to measure your customer experience efforts. Try to think about your company’s objectives when evaluating the metrics, and use these fundamental KPIs as your starting point. 



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