Tags: metrics | customer | experience | analytics

4 Relevant Metrics for Customer Experience Analytics

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Tuesday, 04 December 2018 12:32 PM Current | Bio | Archive

Studies have shown that 86% of buyers are willing to pay more for a great customer experience; 73% of buyers point to customer experience as an important factor in purchasing decisions and 65% of buyers find a positive experience with a brand to be more influential than great advertising.

Furthermore, it was found that, by the year 2020, customer experience will overtake price and product as the key brand differentiator. In customer experience analytics, businesses must focus on the right parameters to avoid wastage of resources and maximize effectiveness and profitability.

The list of metrics you can analyze to get a better understanding of your customers is endless. If not done diligently, you might end up collecting lots of data and conducting analysis that wouldn’t improve the relationship between your customers and business.

Here are 4 relevant metrics for customer experience analytics:

  1. Cost of Customer Acquisition

Cost of customer acquisition for instance, is a very important metric for a business. However, it is of little or no significance in customer experience analytics where the primary aim is to qualitatively gauge a customers’ experience while interacting with your brand.

Big data analytic tools can be quite expensive and may require other resources in terms of skills and labor. It is therefore prudent for any business to carefully choose the exact type of data they need to collect and analyze. This decision should be based on the business’s aim.

Focusing on the right parameters will help you attain the necessary information with minimal resources.

  1. Site Traffic and Customer Bounce Rate

Site traffic refers to the number of digital users that visit your site or application. This on itself does not say much about the experience that the customer has on your site.

However, having the traffic data enables you to calculate the bounce rate (or number of people that leave the site on the same page that they landed on). A high bounce rate suggests that the visitors didn’t have a pleasant or helpful experience on your site.

There are a myriad of variables that can cause visitors to leave that often. It could be difficulty navigating the website, failure to meet the expectations he customer got on first interaction with your brand etc.

Conduct further analytics customer experience to determine the exact cause and strategize how to overcome it.

  1. Conversion Rate Relevant to Customer Experience Analytics

Site traffic data can also help you calculate the number of visitors that complete a specific task i.e. conversion rate. A visitor that is successfully converted to a customer, subscriber, make a return visit, or even gives feedback most likely had a pleasant customer experience.

Take note of the visitors that fail to be converted despite visiting several pages, identify the possible explanations for this behavior, and make the necessary adjustments.

  1. Net Promoter Score

The net promoter score is an arithmetic index ranging from -100 to 100 that gauges the willingness to refer the business to another person.

A high average net promoter score is considered one of the best metrics showing customer satisfaction. For customers that score low on the index, conduct a thorough customer journey map analysis to note the points of unpleasant interaction.

In customer experience analytics, the aim is to determine whether the interaction that the customer has had with your brand was satisfactory. In such a project, it is therefore important to limit yourself to data analytics that are related to customer experiences only.

Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.
 

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RichardAgu
The list of metrics you can analyze to get a better understanding of your customers is endless. If not done diligently, you might end up collecting lots of data and conducting analysis that wouldn’t improve the relationship between your customers and business.
metrics, customer, experience, analytics
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2018-32-04
Tuesday, 04 December 2018 12:32 PM
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