Customer Satisfaction Metrics
FreeText AI platform exposes out metrics for different purposes. Some of these metrics are explained below.
Customer Satisfaction Score (CSAT)
A metric that measures customer satisfaction with a product or service based on their recent experiences.
Formula:
CSAT = (Number of Satisfied Customers / Total Number of Customers) * 100
In the context of eCommerce reviews, it's measured as -
(Number of satisfied reviews (4 & 5 stars) / Number of total reviews) x 100 = % of satisfied customers
Net Promoter Score (NPS)
A tool to gauge customer loyalty and predict business growth by categorizing customers into promoters, passives, and detractors.
Formula:
NPS = (% Promoters) - (% Detractors)
Cheat Code:
Ask customers, "On a scale from 0 to 10, how likely are you to recommend our product/service to a friend or colleague?"
Advantage:
Helps identify loyal customers and brand advocates.
Drawback:
Does not provide specific feedback for improvement.
Customer Effort Score (CES)
Measures the ease with which customers can interact with a service or product, aiming to assess the effort required to use or obtain service.
Formula:
CES = (Total Effort Score / Total Number of Respondents)
Cheat Code:
Inquire, "How much effort did you have to put forth to resolve your issue/purchase our product?"
Advantage:
Highlights areas needing improvement in customer experience.
Drawback:
May not fully reflect overall customer satisfaction or loyalty.
Customer Complaint Resolution Rate
Tracks the percentage of customer complaints that are successfully resolved by a business.
Formula:
Customer Complaint Resolution Rate = (Number of Complaints Resolved / Total Number of Complaints) * 100
Advantage:
Indicates the efficiency of customer support services.
Drawback:
Does not measure the quality or customer satisfaction with the resolution.
Customer Feedback Engagement Rate
Description:
Assesses the level of engagement and participation of customers in providing feedback.
Formula:
Feedback Engagement Rate = (Number of Feedback Responses / Total Number of Feedback Requests) * 100
Advantage:
Provides insights into customer engagement and the value of feedback mechanisms.
Drawback:
High engagement rates may not always indicate positive feedback or satisfaction.
Each of these metrics offers a unique perspective on customer interaction and satisfaction, helping businesses tailor their strategies for improved customer experiences.