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Digital Marketing
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Customer Experience Metrics You Should Care About

Howuku Writer
June 24, 2022
5-star rating
Reviews on Capterra
Customer Experience Metrics You Should Care About

Customer Experience Metrics are KPIs that measure customers' engagement with your brand or business, understanding these can help you improve the way you deal with your customers and in turn increase the following:

  • Customer loyalty
  • Customer satisfaction
  • Customer endorsement

Most customers place equal importance on their experience with a company or business as much as its goods or services, personalizing a buyer's journey plays a major role in boosting their satisfaction and returning to do business with your again.

In order to achieve this, companies use the information obtained from these measurements to develop targeted sales and marketing strategies, address product pain points, and train their customer support personnel, to name a few examples.

What are these metrics and how can each of them determine different facets of your customer's experience? We've listed them down below!

Net promoter score (NPS)

"On a scale from one to 10, with ten being the highest and being the lowest, how likely are you to recommend our product to a friend or colleague?"

The line above is a classic example of how to conduct an NPS question, and the feedback for it is divided into three types:

  • Detractors - These are the customers that responded with the numbers 1 through 6. By posting a negative review or discussing their unfavorable experience with a brand with their friends and coworkers, they will likely have a negative influence on promoting your brand or business.
  • Passives - They respond with either a seven or an eight. It suggests a lack of brand loyalty as they will neither hinder your business nor will they will promote it.
  • Promoters - Promoters are the individuals who respond with nine or 10. Through positive word-of-mouth, these devoted consumers will help your firm develop naturally.

To compute the net promoter score, aggregate the number of the detractors, passives, and promoters, and then convert each figure into a percentage

(e.g., detractors/total individuals x 100).

How to determine your NPS score?

  • Add the number of promoters, passives, and detractors separately
  • Convert each into a percentage.
  • Deduct the percentage of the detractors from the promoters. Just ignore the passive.

    1 detractor, 1 passive, 3 promoter = 5
    1/5 x 100 = 20% detractor
    1/5 x 100 = 20% passive
    3/5 x 100 = 60% promoter

    60% (promoter) - 20% (detractor) = 45% (Total NPS score)

Whether or not your net promoter score is satisfactory depends on the industry. Typically, net promoter ratings range from 20% to 40%. It is appropriate to aim for five points over the industry standard.

NPS score is important for your business because it is a scientific approach in forecasting business growth.

Read here: Why it's important to get customer feedback in the digital age

Customer churn rate

Customer churn rate, also known as the logo churn rate or the account churn rate. It measures the number of customers you have lost over a period of time, usually 30 days. 

For example, at the start of the month, you had 20,000 customers and then you lost 200 throughout that period, your customer churn rate for those 30 days is 200/20,000, or 1%.

How to calculate customer churn rate?

number of customers lost / number of customers at the start of the month x 100

New customers gained throughout the month are not factored into the customer turnover rate.

And this metric will basically show you that retaining a customer costs less than finding a new one.

Customer satisfaction score

The customer satisfaction score also referred to as CSAT, tells a business how pleased a consumer is with a specific transaction or their overall experience with your business. CSATs are used to measure consumer loyalty.

CSAT questions are typically asked this way:

“On a scale of one to five, with one being very dissatisfied and five being very satisfied, how happy are you with our service?”

How to calculate CSAT?

Separate your respondents into promoters, detractors, and passives.

  • Detractor - customers who answered 1 -2
  • Passive - customers who answered 3
  • Promoters - customers who answered 4 - 5

The customer satisfaction score is obtained by:

  1. summarizing the promoters' numbers
  2. Taking that sum and dividing it by the overall number of responses
  3. multiply it by 100.


Number of customers surveyed - 5

  • Promoters 2
  • Passive 2
  • Detractor 1

2 (promoters) / 5 (total number of surveys) x 100 = 40% total CSAT

Calculating customer satisfaction score, one of the customer experience metrics
image source

Why should you gauge customer satisfaction? By understanding whether or not your customer is happy with your actual service, you'll know whether or not your products or services are working.

Customer effort score

The customer effort score, also known as CES, informs a company about how much effort a customer exerted during a specific interaction with their brand. Businesses use CES as a customer loyalty metric as well.

The question to determine the customer effort score is:

“How much do you agree with the following statement: The company made it easy for me to solve my issue.”

Seven choices but are still within a scale of 1 to 10 are available given to the customer, ranging from "strongly disagree" to "strongly agree."

How to calculate CES?

The score is calculated by taking the total average number of the result.

  •  (Total sum of responses) ÷ (Number of responses) = CES score. 


  • Total survey responses: 50 survey responses
  • Total score from the survey: 200.
  • 200 ÷ 50 = a CES score of 4. 

You should aim for a score of at least six.

Why should we assess the scores for the customer's effort? The relationship between the amount of effort a customer puts in and loyalty to a business is inversely proportional. When a greater amount of effort is required, customer loyalty tends to decrease. 

The contrary is also true: reducing the amount of work required of customers can improve their loyalty.

Monthly recurring revenue

MRR or monthly recurring revenue is a metric that monitors the sum of all earnings made in a given month. 

The formula is the number of active customers every month multiplied by the average revenue generated by each user. Your monthly recurring revenue (MRR) would be $500,000 if, during a given month, you had 10,000 members and your average revenue per user was $50.

What new information can you garner by reading the MRR? Customers are more likely to be eager to continue making payments for a product or service if they feel they are getting value from it.

Your company must be doing something right if customers are willing to pay extra for additional features or services.

Calculating monthly recurring revenue, one of the customer experience metrics

image source

How to conduct these surveys?

Various methods can be implemented to conduct these surveys on your customers. However, one of the easiest ways to do it is by giving them access to these survey questions anytime when they visit your website.

Howuku is a CRO tool that helps businesses understand their customers better through advanced analytics tools that determines their behavior on your website. One of the tools that Howuku offers is an On-site survey form which can help you ask a series of questions to your customers through your website or landing page. It's easy and hassle-free to implement, you can try it for free to!

Key takeaways:

  • Customer Experience Metrics can help boost levels of customer satisfaction, brand loyalty, and consumer endorsement.
  • The customer turnover rate is a critical measure to track since it is less expensive to keep a client than it is to acquire a new one.
  • The net promoter score is a tried and tested tool for estimating future company growth.
  • The customer satisfaction score provides an indication of how pleased a customer is with a specific interaction or with their overall experience with a particular brand.
  • The amount of effort put in by a consumer is inversely proportional to the amount of loyalty they display. When more work is required of the customer, they become less loyal to the brand.

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