19.09.2022 09:30

Effective Model to Measure Customer Experience

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Providing a good customer experience is an essential branding strategy for every company and development company, today. Though, it may be challenging to determine the success of the customer experience strategy. Measuring customer experience is essential to know the success of your company. Different measurement metrics are being used by big companies you should also prioritize.

No company can survive without happy paying customers. That is one of the reasons why measuring your customer experience is very important if you want to grow. Some metrics leading customer experience experts have proved to determine how customers feel and how you can leverage their feelings by doing the right thing.

In this article, you will learn about the importance of customer experience and the metrics to measure customer experience in every development company, and how you can leverage it.

The Importance of Customer Experience Metrics

There are several things a company can do for their development to ensure a great customer experience, such as sending a regular effective email to customers, customer referral programs, and customer appreciation offers. This strategy will help you know the difference between customer satisfaction and sales.

Taking these measurement metrics seriously would be best because acquiring a new customer will cost you more than retaining a new customer. For instance, if a company can decrease its churn rate by 25%, it will reach its target without selling to new customers. But without the measurements metrics, you won’t know the necessary steps to take. It is a powerful strategy to grow.

Customer Retention Rate

One of the most important metrics to measure customer experience is their retention rate. It is the number of customers who have stayed with your company for a long time and keep paying for your service. Customer retention rate will help to show you when customers are likely to stop paying for your service as a custom software developer or stop using your service.

How to Calculate It

There are two types of ways to calculate your customer retention rate. One of these ways is to subtract the number of customers who stay with your company over time from the number of customers who stay loyal.

Mathematically: 90% customer retention – 10% churn = 80% retention rate

Another way to calculate it is to look at the numbers of customers that stay loyal for one season vs for another season.

How can You Use It to Improve The Customer Experience?

You don’t just use this measuring metric if you are a custom software agency; you use it to know how to improve your customer experience. After looking at your retention rate, you can grow by tracking your customer experience at a certain point in your product life cycle. When you do this, you will get an idea of the number of users who value your product or service over a given period and have the chance for improvement. It would be best to consider doing this as a development company because onboarding new customers are more expensive than keeping the current ones.

Customer Churn Rate

The churn rate is the opposite of the retention rate. It is the rate count of the number or percentage of customers you lost over a certain period. That is why as a business owner who runs a custom software development firm or development company, you need to have your customers’ details to track their experience with you.

How You Can Use It to Improve The Customer Experience?

Keeping an eye on your customers’ churn rate is important because keeping customers is more straightforward than finding new ones. The lower your company’s churn rate, the more loyal customers you have. In this case, you can use your retention rate measurement to see where your customers are losing interest in your company and know where to make necessary adjustments to improve your customers’ experience.

How to Calculate It?

To calculate your churn rate, you need to do the reverse sum of your retention rate. You must determine the period and divide it among customers who have not made any operations in your company.

Mathematically: (Lost customers ÷ Total Customers at the Start of period) x 100 = Customers Churn rate. For instance, if your company had 300 customers at the beginning of a month but lost 10 customers by the end of the month, you will divide 10 by 300.

Customer Effort Score (CES)

This metric is used to measure how your customers can find what they are looking for. It is the effort they put into a task to complete it. It could be a support request to find a product or service they are looking for.

How You Can Use It to Improve The Customer Experience?

The easier your customers are likely to find what they are looking for, the more likely your customers will buy from you again. Based on research, 94% of customers who effortlessly find what they are looking for are likely to buy again.

The more effortless you can make the customer experience, the more likely your customers will buy from you again. Also, 85% of customers who put all their effort into finding a product in their company are likely to share their experiences. Understanding your Customer Effort Score will show you where the customer experience is smooth and where you need to attend to urgently.

How to Calculate It?

To calculate CES, you need to send out a survey on your company’s website asking your customer to talk about their experience with your company. Mathematically: (Total sum of responses) ÷ (Number of responses) = CES score.

Customer Satisfaction (CSAT)

This metric determines the level of your customer with your overall product or service.

How You Can Use It to Improve The Customer Experience?

You can use this response to figure out the part of your product or service your customers are satisfied and not satisfied with. Then you can make necessary strategies to adjust these areas.

How to Calculate It?

To calculate this, you need to send a short survey to your customers after having a short interaction with you or their interaction about a specific area of your product. This survey will have asked them to scale your company on how satisfied they were on a scale of 1 — 10. Then all you need to do is take the total number of the sum and divide it by the total number of respondents. This is a great metric to measure customer experience because it is mainly used by big companies worldwide.

Net Promoter Score (NPS)

In addition to the metric to measure customer experience, NPS helps to identify customers’ loyalty with just a single question: “How likely are you to recommend our product/service to a friend? Based on the score of 0 to 10, you will be able to know the number of customers that will come for your service/product again or those that are not likely to buy again.

How You Can Use It to Improve The Customer Experience?

This metric helps you know the longevity of a customer and what you need to do to improve their experience with your company.

How to Calculate It?

To calculate your Net, Promote Score (NPS), you need to subtract the percentage of detractors from the percentage of promoters. Mathematically: % promoters – % detractors = NPS


Understanding your customer’s voice is a significant step to building a great customer experience. Also, you must know that all the CX metrics need background information. You need to be able to link your customer experience result to what happened in the transaction.

In some cases, you may not know how to measure the right metric; FortySeven Professionals are experts at what they do. Hanna Shnaider is the best person you need that can help you. You can view her profile here.

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