How to Measure Customer Experience?

You’ve been tasked with the assignment to measure customer experience, improve customer experience or sales metrics and figure out how to sustain the higher results.

But exactly how do you measure customer experience?

Why should you care?

The answer is simple.  It costs more to acquire a new customer than to keep an existing customer.  Donna Fenn notes in her Inc. article “10 Ways to Get More Sales From Existing Customers” that it costs 5 to 10 times more to acquire a new customer than to keep a current customer and sell to that customer.  Furthermore, your current customer is likely you spend 67% more than a new one.

You can even measure the Lifetime Value of your customer.  This info-graphic explains exactly how to do it.

In short, it is definitely worth your effort to focus on your existing client or customer relationships.  Their satisfaction will likely maintain their loyalty and boost your sales.

So how do you increase not only your customer retention, but also your customer satisfaction?

Let’s first take a look at where you and then you can determine where to go from there.

You may or may not be measuring your customer experience.

We’ve put together a short list of some common customer experience measurements include Customer Satisfaction Score (CSAT), Customer Retention Rate, Net Promoter Score (NPS) or Customer Effort Score (CES).  We also use our Golden Touchpoint Score™ which we custom build for businesses.

Customer Retention Rate:

A simple indicator, Customer Retention Rate measures how long customers stay with your company.


Churn is the rate at which customers leave a company.

Negative churn:

Negative churn measures customers who expand their purchasing, add more products or services to their typical orders or purchasing behavior.

Net Promoter Score (NPS):

NPS measures customer satisfaction on a scale of 1-10.  It is a simple metric and examines whether someone would recommend your product, service or company to someone else.

To calculate NPS, you subtract the percentage of detractors (those people who would not promote your company from percentage of promoters

Logically, it stands to reason that the fewer detractors you have, the higher your NPS is.


Customer Effort Score:

Customer Effort Score is a newer metric that some companies have chosen in conjunction with NPS or in lieu of NPS.  Customer Effort is a key element for customer satisfaction or customer delight.

The Customer Contact Council put it best in their 2010 report on customer loyalty.

Customer Experience = Customer Loyalty

The customer perceives value or lack of value after the sale based on how they are treated within the context of their interactions with a company.

In other words, the consumer’s problem or issue with the product or service is causing an accompanying emotional need.

For example, the consumer’s emotional state can be impacted by the actual customer service touchpoint with an advisor or by past interactions with the company.

When situations like these occur, a consumer’s negative emotions begin to build, and he or she starts to look at the touchpoint as a High-Effort customer interaction.  High-Effort customer interactions always plant the seeds of dissatisfaction and disloyalty in a consumer’s mind.

Employees must identify and address the emotional needs of the consumer directly related to his practical needs and provide a solution that creates a Low-Effort customer experience for the Consumer.