NPS, CSAT and CES: What are they?

Surveys can be a very effective way of improving your customer experience and increasing your customer satisfaction, but how do you know that you’re doing a good job? How can you tell if your customers are satisfied or if you’re doing a good job? This blog will introduce three new scores from Surveyed that can help you answer those questions.

Customer Experience (CX): According to a study, an accurate CX score means that customers perceive your brand to interact and treat them in a manner that feels positive. It is important for one to have scores that are at least as good as their competitors because buying behaviour is driven by emotion and feelings more than logic. This perception has the potential to influence how people feel, what they talk about, and how likely they will be to continue purchasing from you or speak positively regarding your brand.

When you talk about measuring Customer Experience (CX) and satisfaction, the three metrics that first come to mind:

Net Promoter Score (NPS)
Customer Satisfaction Score (CSAT)
Customer Effort Score (CES)

They’re used to measure the level of loyalty that a customer has towards your brand. Customers are assumed loyal when they consistently use your brand over an extended period.

They basically help you collect valuable feedback, so that you can make the changes and improvements as per your customer base needs and offer them a better experience and more pleasant customer journey.

Let’s see what each metric is and how it works.

Net Promoter Score (NPS):

NPS has been demonstrated as an indicator of future business growth due to interrelationship with customer loyalty, NPS has been widely adopted internationally by some of the world’s largest brands.

Once you start using NPS, you’ll be able to gauge against yourself and competitors using the standard correlation NPS study, which is helpful for winning guarantees from key company stakeholders.

NPS asks a simple question:

On a scale from 0 to 10, how likely are you to recommend [company] to a [friend or colleague]?

The specialty of this particular score happens to be:

The question isn’t specific to any particular event or transaction.
The question is scoped to the brand overall, which means that if you survey your customers on a regular basis, you’ll be able to monitor customer sentiment toward your brand over time.

How is NPS score calculated?

The score is expressed on a scale of -100 to 100.
Calculate NPS by subtracting the percentage of promoters (people who rate you 9 or 10) from the percentage of detractors (people who rate you 6 or lower).

Total % of promoters – Total % of detractors = Net Promoter Score.

For example, if 10% of respondents are detractors, 20% are passives and 70% are promoters, your NPS score would be 70-10 = 60. Your NPS could range from -100 to 100.
Based on the responses that come back, respondents are segmented into the following groups:

Promoters (9 or 10 ratings): Your happiest customers who are the most likely to buy more from you and refer your product/service to someone else.
Passives (7 or 8 ratings): Relatively satisfied with your product or service, but a subtle change in your business or your rival may cause them to leave you.
Detractors (0-6 rating): Your least happy customers who are not only likely to leave soon but also tell others about the negative experiences they’ve had with your business.

When to send NPS surveys?

For new customers, send out your initial survey after they’ve had time to fully experience your product or service. From then on, send your survey out on a regular basis to monitor evolving customer sentiment.

Surveyed & NPS:

Surveyed allows you to easily add NPS questions to your surveys with just a button click.
Once you get the required number of scores, our application processes the data and shows you a beautiful graphic representation of how your scores are looking and your average score.
We even display the user comments along with scores so that you will understand the reason for that score and take action based on it.

Customer Satisfaction Score(CSAT):

CSAT surveys are intuitive for everyone in the company to understand. Because the question format is so versatile, it is extremely effective for tracking how your customer feels through the entire customer lifecycle. If satisfaction drops at any touchpoint, you will have the insights necessary to follow up with the customer and close the feedback loop.

CSAT asks the question:

Overall, how satisfied are you with our product/service?

How is CSAT score calculated?

The score is expressed on a scale of -100 to 100.

To calculate a CSAT score from your survey data, you will use the responses of 7, 8 (satisfied) and 9, 10 (very satisfied). It has been shown that using the 4 highest values on feedback surveys is the most accurate predictor of customer retention.

To calculate your score, take the number of satisfied customers (those who rated you 7, 8, 9 or 10), and divide by the total number of responses.

Use the below formula to arrive at a percentage score:

(Number of satisfied customers (7, 8, 9 & 10) / Number of survey responses) x 100 = % of satisfied customers

Then calculate the average CSAT score as shown below:

(Total number of satisfied responses (ratings of 7, 8, 9 or 10) / Total number of responses) × 100

For example, if 62 of your 100 responses have a rating of 7, 8, 9, or 10, your score would be 62.

Based on the responses that come back, respondents are segmented into the following groups:

Very unsatisfied (1 or 2 ratings)
Unsatisfied (3 or 4 ratings)
Neutral (5 or 6 ratings)
Satisfied (7 or 8 ratings)
Very satisfied (9 or 10 ratings)

When to send CSAT surveys?

CSAT surveys should be timed for co-occurrence, depending on what you’re evaluating. For sales, onboarding, or support interactions, ask for CSAT feedback immediately. For product feedback, time the survey so that you’ve given the customer enough time to fully experience your product.

CSAT surveys would be sent regularly over long periods of time, similar to NPS surveys.

Surveyed & CSAT:

Surveyed has the option to add a pre-defined question for CSAT so the users don’t have to search anywhere about it.
Once you get the required number of scores, we process the data and show a beautiful graphic representation of how scores are looking along with the average score.
We even display the user comments along with scores so that you will understand the reason for that score and take action based on it.

Customer Effort Score (CES) surveys:

CES explores how much effort a customer feels they had to put in to resolve an issue and is usually used to help customer service improve resolution times and provide higher-quality experiences.

In the case of CES surveys, the hyper-focused effort score question is great for getting actionable feedback for certain use cases and is often sent after customer service interactions.

Unlike NPS and CSAT, CES calculation is done in the opposite way i.e. if you get a score of 1, 2, or 3 out of 10 that means your business process was easy to follow whereas if you get 9 or 10 out of 10 your process was extremely difficult to follow.

CES asks the following question:

Overall, how much easy was it complete the process?

How is CES score calculated?

Customer Effort Score ranges from 0-100. Your CES is the total number of customers who “agree” that their interaction was easily divided by the total number of responses. For example, if 65 customers out of 100 rated you 1, 2, or 3 on the 10-point scale, your CES would be 65.

(Total number of “agree” responses (ratings of 1, 2 or 3) / Total number of responses) × 100

Based on the responses that come back, respondents are segmented into the following groups:

Easy (1, 2, or 3 ratings)
Neither (4, 5, 6, or 7 ratings)
Difficult ( 8, 9, or 10 ratings)

When to send CES surveys?

Similar to CSAT, you should ask customers to evaluate an interaction immediately after it happens. This could be just after purchase, or after the resolution of a service ticket.

Surveyed & CES:

Surveyed has the option to add a pre-defined question for CES with just a button click.
Once you get the required number of scores, we process the data and show a beautiful graphic representation of how scores are looking along with the average score.
We even display the user comments along with scores so that you will understand the reason for that score and take action based on it.

So which tool is best for your business?

As you’ve gathered, you should start by asking yourself the question: What’s the target of my customer experience strategy?

If you are looking to understand customer loyalty and how well your brand is received overall, use NPS.
If you are going through maintenance of your products and services, asking customers for CSAT feedback every step of the way can help you decide in real-time whether the changes are a good idea.
If you want to improvise your business process, CES is the best tool.

Of course, using a combination of these three tools will give you an all-inclusive overview of customer experience.

Sometimes, you may also need to experiment with multiple tools to see which result is the most insightful, actionable feedback for your business.

No matter which tool you choose to track, as long as you use your customer insights to improvise your business, you will always be on the right path to captivate your customers with the best services possible.

Wanna explore these tools? Check Surveyed - AI Based Video Reviews App

Author:

Poojitha G

(Business Analyst & Project Manager atSpicyfy Ventures LLC)