4. Use KPIs to Gauge Customer Service Performance
It is not enough for eCommerce managers to train and equip their customer service teams. Measuring and tracking customer experience with the right KPIs can help the entire team understand how their consumer experience ties to overall business success, and how shoppers’ interactions with them change over time.
KPIs help eCommerce leaders appreciate their shoppers’ satisfaction level and readiness to continue doing business with them.
Here are four customer experience KPIs to track:
- Net promoter score
- Customer effort score
- Rate of returning visitors
- Revenue per customer
See the breakdown of each KPI below.
Net Promoter Score
Net promoter score (NPS) is a reflection of an eCommerce business’s customer experience. An eCommerce business’s net promoter score shows the likelihood of shoppers referring their family and friends to do business with that brand.
To calculate NPS, send a survey including the question, “How likely are you to recommend our product?” Customers provide their answers on a scale of 1 to 10.
After collecting this information, calculate NPS by subtracting the total number of entries below 5 from the total number of entries above 5.
An NPS below zero indicates a low customer satisfaction level. An NPS between zero and 30 shows more satisfied customers than unsatisfied customers. Above 30 implies that there are far more satisfied customers than unsatisfied customers. Above 70 means that customers are loyal and will be the source of a lot of word-of-mouth referrals.
Customer Effort Score
Customer Effort Score (CES) reveals how much work consumers must put into researching products and services or completing a particular task. For example, how long does it take the average shopper to get a refund, sign up, or get a request ticket answered?
Customer effort score reflects how accessible a business is to its consumers.
As with NPS, calculate CES using a survey with the question, “How much effort did you have to put in to complete this task?” Ask customers to respond on a scale of 1 to 7 or 1 to 5.
Here’s the breakdown for each scale.
On a scale of 1 to 5:
- 1 = Very high effort
- 2 = High effort
- 3 = Neutral
- 4 = Low effort
- 5 = Very low effort
On a scale of 1 to 7:
- 1 = Extremely difficult
- 2 = Very difficult
- 3 = Fairly difficult
- 4 = Neither
- 5 = Fairly easy
- 6 = Very easy
- 7 = Extremely easy
To calculate the cumulative CES, divide the sum of all consumer effort entries by the total number of entries.
The best time to measure CES is immediately after a purchase or a concluded service interaction, or when an overall customer experience report is valuable.
On a 1-to-7 scale, aim for a CES of 5 or higher. A CES lower than 5 shows shoppers are struggling with a product or service and getting minimal satisfaction from it. Above 5 means consumers find it easy to use a product or service.
Rate of Returning Visitors
The rate of returning visitors (RVR) reflects the effectiveness of customer success strategies and user experience for an online service. If shoppers enjoy their experience on the site, they’ll be more likely to return.
For an online service, calculate RVR by dividing the number of returning visitors by the number of unique visitors. The higher the value, the better the customer experience on the site.
While RVR can vary for different industries, a good RVR is 30% or more.
Revenue Per Customer
Revenue per customer (RPC) ties the overall consumer experience to a company’s bottom line.
To calculate RPC, divide the total revenue by the total customer count.
A high RPC means consumers have a consistently positive experience with a business. They are loyal, repeat shoppers who recommend the brand to friends and family.
Combined, these four KPIs provide insight into the quality of customer service, the satisfaction consumers derive from a product or service, and areas for improvement.
For example, a CES below 5 for contacting support could mean one or more of the following:
- Customers don’t receive a timely response
- Consumers must try multiple channels to access the customer service team
- Customers must repeat themselves to every new call center agent they interact with
- It takes a long time for representatives to resolve their issues
Company executives should dig deep to uncover the factors producing the low KPIs and benchmark their KPI with their competitors’ to know where they stand.