Customer Experience Measurement Methods (Part 2)

Measuring customer experience is a process that always involves customer collaboration to obtain the most objective and accurate data. However, not all customers are willing to assist businesses in realizing this. Therefore, companies must constantly innovate their approaches so that customers perceive the evaluation of the experience process as useful and genuinely honest when providing feedback.

3. Measuring Customer Experience through Customer Satisfaction Score (CSAT)

3.1 Concept

Customer Satisfaction Score (CSAT) is the simplest method among the methods used to survey and measure customer satisfaction with a business, with a transaction, or in the customer’s interaction with a service/product. CSAT is measured through short questions typically found at the end of customer feedback surveys, such as: “How would you rate your overall satisfaction with this product/service?”

The CSAT score is the basis for businesses to capture information about product/service quality or other factors directly influencing customer satisfaction, allowing them to compare themselves with competitors and come up with appropriate solutions for business development.

3.2 Role of CSAT

Create an interaction channel between the business and old customers: Using the CSAT customer experience measurement method helps create a direct interaction channel between the business and the customers, aiming to understand and satisfy customers to the fullest. It also reduces negative evaluations on other media platforms, as with the current speed of information dissemination, just one “Dissatisfied” review online can cause significant harm to the business.

A reference channel for new customers: The CSAT score will help new customers, who have never used the business’s products or services, decide whether to use them because no one wants to buy low-quality products that are not highly rated. Information about the experiences of previous customers will be an important basis for new customers to make their choice. Therefore, satisfying existing customers also attracts new ones.

The main benefit found with CSAT is based on responses at the moment of completing any customer experience with a product or service (Businesses typically aim to get a CSAT score within 30 minutes of product/service use). Measuring CSAT also allows comparing satisfaction levels across channels to measure customer experience with specific tasks in IVR, websites, or mobile apps. This means that when you want to understand and measure specific interaction attributes, a CSAT survey allows you to use multiple questions to focus on these areas. For customers, CSAT becomes an indispensable “consultant” in the decision-making process of using a service or product.

3.3 Advantages and Disadvantages of CSAT

* Advantages:

• This method of measuring customer experience is quite simple, can be repeated multiple times throughout the customer journey, and easily connects with customers to determine whether it is effective in creating satisfaction with the product/service.
• It provides an overview of how customers experience various touchpoints with the product/service throughout the entire process.
• This helps easily identify potential key issues and make timely improvements to the customer experience.
• Unlike NPS, which often requires customers to consider their overall impression of the brand (such as their likelihood to recommend it), CSAT focuses customers’ attention on specific touchpoints where they were satisfied or dissatisfied.

*Disadvantages:

• CSAT only provides a snapshot of customer satisfaction at a specific moment, usually immediately after a product or service experience. This may not accurately reflect the customer’s long-term feelings about the brand or product.
• While CSAT helps measure satisfaction at specific touchpoints, it doesn’t provide deep insights into why customers feel that way. Therefore, it may lack the necessary analysis to identify the root causes of satisfaction or dissatisfaction.
• If customers feel that they only need to respond to a specific touchpoint, they may provide extreme responses (either satisfied or dissatisfied), leading to skewed results.
• CSAT focuses on individual touchpoints and cannot capture the entire customer experience with the brand, especially when customers interact with multiple products or services from the same brand.
• Due to the short-term and non-continuous nature of CSAT, tracking changes in customer satisfaction over time can be challenging, especially in long-term strategies.

3.4 CSAT Formula

CSAT (Customer Satisfaction Score) is a metric used to measure customer satisfaction with products, services, or experiences when interacting with a business. Typically, the questions used to calculate the CSAT score ask about the level of satisfaction, such as:

How satisfied are you with our XYZ service?

How do you feel when using our ABC product?

CSAT (%) = Number of satisfied customers / Total number of customers who rated * 100

• • CSAT from 0-40%: Low satisfaction
  • CSAT from 40-60%: Acceptable satisfaction
  • CSAT from 60-80%: Relatively good satisfaction
  • CSAT from 80-100%: Excellent satisfaction

• The 1-3 scale in measuring customer experience has 3 levels:

Level 1: Dissatisfied: These customers have a negative impression of your product/service and may leave a bad review about your business.

Level 2: Neutral: These are neutral customers who neither like nor dislike your business. They can easily replace your product with a competitor’s product.

Level 3: Satisfied: These customers are positive about your product/service and will continue to support your business.

Then compare with the score table:

• • CSAT from 0-40%: Low satisfaction
  • CSAT from 40-60%: Acceptable satisfaction
  • CSAT from 60-80%: Relatively good satisfaction
  • CSAT from 80-100%: Excellent satisfaction

• The 1-5 scale has 5 levels:

Level 1 and 2: Very dissatisfied and Dissatisfied: These customers have a negative impression of your product/service and may leave a bad review about your business.

Level 3: Neutral: These are neutral customers who neither like nor dislike your business. They can easily replace your product with a competitor’s product.

Level 4 and 5: Satisfied and Very satisfied: These customers are positive about your product/service and will continue to support your business.

4. Measuring customer experience through time to resolution (TTR)

4.1 Definition of TTR

Nowadays, as consumers, we are all pressed for time. Gartner even claims that “Effort is the strongest driver of customer loyalty.” Therefore, the easier it is to do business with your company, the more likely customers are to return as satisfied customers. Furthermore, customers are more likely to share their positive experiences with others, and costs may decrease, such as eliminating up to 40% of repeat support calls.

Statistics and trends in CX show that the top reasons for customer frustration are long wait times/slow responses. Therefore, TTR is an important metric in measuring customer experience: the shorter the TTR, the less likely customers will experience frustration when seeking help.

Time to Resolution (TTR) refers to the average time it takes for the customer service team to resolve an issue from the moment the customer submits a request. This time can be measured in days, hours, or minutes, depending on the business type. The average time is calculated by dividing the total time spent resolving all issues by the total number of issues.

TTR can be measured in days or hours and is calculated by summing up all the time spent resolving issues and dividing the result by the number of cases resolved.

4.2 TTR Calculation Formula. The lower the TTR, the better the customer experience

It can be seen that the methods for measuring customer experience are diverse and depend on the specific characteristics of the business. Therefore, to measure customer experience effectively, businesses can flexibly apply multiple methods simultaneously or analyze each specific metric individually. Measuring experience is a foundational data source for implementing and improving the most effective customer experience strategies.

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