Top 10 Most Used Customer Experience Metrics and KPIs
- March 10, 2025
Customer experience is one of the critical factors that determine the success of companies. To deliver a great customer experience, build loyalty, and strengthen brand reputation, companies need to focus on key performance indicators (KPIs). In this article, we take an in-depth look at the 10 most commonly used customer experience metrics.
1. First Contact Resolution (FCR)
Description: The percentage of customer issues resolved during the first interaction. A high FCR rate is a sign of an effective customer support system and reduces operational costs by reducing repeat calls.
Example: If a telecom operator resolves 80% of billing-related calls at the first point of contact, it has a good FCR rate.
Importance:
- Increases customer satisfaction.
- Helps maintain high productivity within the support team.
- Minimizes costs by reducing repetitive calls.
2. Customer Satisfaction Score (CSAT)
Description: It is a survey-based score that assesses customer satisfaction with the provided service. It is typically measured using a 0-100% scale or a simple 1-5/1-10 rating system, with questions like ‘Are you satisfied with our service?
Example: To measure the performance of the after-sales support team, an e-commerce company asks customers to rate their service experience on a scale of 1-5. If the average score is 4.5, this is a high indicator of satisfaction.
Importance:
- It is one of the most effective methods to get instant feedback from customers.
- It directly affects brand loyalty.
- Very useful for operational improvements.
3. Customer Effort Score (CES)
Description: A metric that assesses how much effort customers need to exert to resolve an issue or use a service. It is determined by questions such as “How easy was it to solve your problem?”.
Example: A customer who wants to increase their credit card limit on a bank’s mobile app will have a high CES score if they can complete the transaction in a single step.
Importance:
- It is one of the most important factors determining customer satisfaction.
- Ensuring a seamless experience enhances customer loyalty.
- Complex and challenging processes can lead to customer churn.
4. Net Promoter Score (NPS)
Description: Measures how likely customers are to recommend a brand to others. It is calculated based on scores between 0-10 to the question “Would you recommend this brand to a friend or colleague?”.
Example: Airbnb has a high NPS score, so users often recommend the platform to others.
Importance:
- It is one of the strongest measures of brand loyalty.
- It helps businesses develop strategies based on customer feedback.
- A high NPS score increases new customer acquisition through recommendation.
5. Average Response Time
Definition: A metric that tracks the average time taken to respond to customer inquiries.
Example: If an e-commerce company’s customer support team responds to incoming requests within 2 minutes on average, this is a good performance indicator.
Importance:
- Fast response times increase customer satisfaction.
- Demonstrates the efficiency of customer support operations.
- Long response times can lead to customer churn.
6. Average Resolution Time
Definition: Measures the average time required to fully resolve customer issues.
Example: If a software company resolves support requests within 6 hours on average, this is a good performance indicator.
Importance:
- Quick resolution of problems increases customer loyalty.
- It shows the efficiency of the support team and the effectiveness of the processes.
- Long resolution times can lead to customer dissatisfaction.
7. Customer Repeat Interaction Rate
Definition: Measures the percentage of customers who require multiple interactions to resolve the same issue.
Example: A telecom company should review its processes if it finds that 15% of customers receive repeat support to resolve the same issue.
Importance:
- A high rate suggests that customer issues were not effectively resolved during the initial interaction.
- Low rates indicate effective and lasting solutions.
8. Customer Lifetime Value (CLV)
Definition: Represents the total revenue a business can expect from a single customer over their lifetime.
Example: If a software company with a subscription model calculates the average CLV per customer as 5000 TL, this contributes to the company’s revenue forecast.
Importance:
- More revenue can be generated by rewarding loyal customers.
- Strategies can be identified by comparing customer acquisition costs with CLV.
9. Support Channel Preference (Customer Channel Preference)
Definition: Shows which channels customers prefer for receiving support.
Example: If 60% of customer support requests in an e-commerce company come via WhatsApp, the company may need to invest in this channel.
Importance:
- Identifies which channels to focus on to optimize the customer experience.
- Ensures that support teams are directed in the right way.
10. Customer Churn Rate
Definition: Indicates the percentage of customers who stop using a brand’s products or services within a specific time frame.
Example: A SaaS company implements loyalty programs with the goal of keeping the annual customer churn rate below 5%.
Importance:
- Demonstrates the effectiveness of the company’s customer retention strategies.
- A high churn rate may indicate a problem with services or products.
Customer experience metrics play a vital role in helping companies assess and enhance their services. The KPIs mentioned above are the most critical indicators to increase customer satisfaction and brand loyalty. By closely tracking these metrics, companies can optimize the customer experience and gain a competitive edge. Selecting the right KPIs and implementing effective improvement strategies can be the key to long-term success.
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