Understanding Customer Experience (CX) in a B2B environment.
What exactly is customer experience? Simply put, it is the perception, your customer develops of your brand. It is the overall experience, the customer faces in the entire engagement with your business and not just the product itself.
You might behaving a high-quality product fulfilling the unmet needs of the customer but if there was some lack of value or some level of dissatisfaction in either of the detailing, delivering and post purchase service, you have already done enough harm.
Having a high index on CX not only increases the chance of repeat purchase and incremental revenue, avoiding lower churn but also ensures referral revenue contributing to the business growth especially in a B2B environment.
Having a low CX should be an area of concern, not only for the leadership team or the client facing members but each member of the organization should contribute towards enhancing the CX.
Successful companies would build CX as part of everyone’s goal and objectives in alignment with the customer’s needs. However before working towards enhancing the CX, you have to be able to determine where you are at. Even today, CX measurement and its contribution towards business growth is a challenge for the business leaders.
How to measure CX?
Some of the most commonly used indexes for measuring CX focusing around the area of Customer Retention are as follows:
1. NPS ( Net Promoter Score)
NPS is basically the response of the customer when asked the question about the likelihood that they will recommend your product to a colleague or friend.
They are asked to rate the likelihood on a scale of 0-10. If they have rated you as 9 or10, consider them as promoters. The ones who rated between 7-8 are passives and the area of concern are the detractors that rated from 0-6.
NPS is calculated by subtracting the % of detractors from the % of promoters.
If you have a score between 30-100, this means you are doing great but anything below 0 is a major area of concern to ensure business growth and sustainability. As per a recent survey conducted on the industry benchmarks, SAAS industry has a NPS score benchmark of 30 and for Enterprise Software, it is even higher with a benchmark score of 44.
2. CSAT (Customer Satisfaction Score)
stomers the overall level of satisfaction with the product/service.
They are asked to choose the level on a scale of 5 options:
1. Extremely Dissatisfied
2. Somewhat Dissatisfied
4. Somewhat Satisfied
5. Extremely Satisfied
Anything below 3 needs to be taken in consideration and requires a deeper dive to assess what is wrong and needs improvement.
3. CES (Customer Effort Score)
Customer Effort Score measures the level of effort the customer had to put while interacting with the business or solving their problem. Like the other two measures above, it is also a response to a single question.
The responses of the question can be ranged from a level of 1-10, on a standard Likert Scale.
However, like the other two clearly indicate the level of customer “experience” or satisfaction, CES is more likely to determine the customer loyalty and is ideal to use in combination with NPS to determine the level of satisfaction also.
The simplest way of calculating CES is to take an average by adding the total score and dividing it by the total number of responses.
What next-Analysis and application?
Using the indexes (either one or all 3), the companies have sufficient data to determine where they stand. However, it is just a score! The key is to plan the next action steps. An effective customer experience program helps you determine what is working and what needs to be improved.
want to look into.
Understanding these key matrices and applying them at various stages of customer engagement can help you enhance your CX and contribute towards business growth.