Lesson 3 Flashcards
What are the 3 formulas
Net Promoter Score (NPS): NPS = (Percentage of Promoters - Percentage of Detractors)
Churn Rate: Churn Rate = (Total Customers Lost / Total at the Beginning) x 100
Customer Satisfaction Score (CSAT): CSAT Score = (Positive Responses / Total Responses) x 100
What is Customer experience Analysis
Customer Experience Analysis: An in-depth study of evaluating how a customer interacts with your products or services.
Purpose: To examine customer-brand interactions to find points that can be improved upon.
What are the 6 ways to measure customer experience from leading indicator to most straightforward method
Calculate Net Promoter Score (NPS).
Analyze customer journey analytics.
Conduct customer surveys.
Determine customer churn rate.
Interpret customer support ticket trends.
Measure customer satisfaction scores (CSAT).
Explain what is The Net promoter score (NFS) and how do we calculate this score.
Calculated using the answer to the question ‘how likely are you to recommend on a scale of 0-10’.
Promoters (9-10): loyal enthusiasts who will keep buying and refer others, fueling growth
Passives (7-8): are satisfied but unenthusiastic customers who are vulnerable to competitive offerings
Detractors (0-6): are unhappy customers who can damage your brand and impede growth through negative word of mouth
Calculation: NPS = Percentage of promoters - Percentage of detractors.
Survey
Importance: Surveys are a valuable way to understand customer experience.
Types: Surveys can cover NPS, customer satisfaction score, user experience, or product/feature requests.
Timing: Send out surveys at various parts of the customer journey to gather feedback.
What is churn rate and how do we calculate it
Definition: The percentage of customers or subscribers who cancel or don’t renew their subscription during a given time period.
Calculation: Churn Rate = (Total customers lost during a period / Total at the beginning) x 100.
What is Customer Support ticket (Feedback)
Source: Information provided by customers regarding how the company, product, or service helped them meet their requirements.
Channels: Feedback can be collected from online reviews, social media, and phone calls.
What are the 4 considerations in Customer Satisfaction/sentiment.
Measuring Customer Satisfaction
Recommendation factor
Ease
Repeat Intention
Explain measuring customer satisfaction
Over all satisfaction also known as CSAT (Customer Satisfaction Index)
Include open ended question for people to explain their response
Want survey that is easy and quick to use
Give a clear indication how well you’re performing in the eyes if the people that matter the most (clients and prospects)
Customer Satisfaction score = positive responses (satisfied responses) divide by the total number of responses multiplied by 100
Explain the Ease in Customer satisfaction/sentiments
How easy it is to do whatever they need to do
The CES (Customer Effort Score) tracks with questions like It was easy for me to _‘ or ‘’one a scale how much effort did you personally have to put in’
Some studies suggest CES is 1.8x better than CSAT and 2x better than NPS for predicting loyalty and satisfaction
Explain the Recommendation factor in customer satisfaction/sentiments
Modern business is dependent on referrals. We turn to friends family and strangers on review boards when we need to find a quality product/service
The recommendation factor or NPS (net promoter score) measures how likely someone is to recommend you to someone else
What is repeat intention in customer satisfaction/sentiments
Ask how likely people are to renew, purchase again, visit again or continue to subscribe. Have them rate on a sliding scale and a brief explanation
This will indicate loyalty levels. If its high, keep doing whatever it is your doing, if low find out why and change it
