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Customer Experience Nilesh Jajoo
Content :-
1) Customer Experience Journey and measuring system
• What’s is Net Promoter System
• Customer Satisfaction (CSAT)
• Customer Effort scores
• CSAT v/s CES v/s NPS
• CLV – Customer Life Value
• Customer Churn
• FCR /Repeat /Reopen
2) Customer Experience v/s Customer Satisfaction?
3) Drivers for Customer Experience
4) Case Study ( Customer Experience Training for TfL)
5) What customer value most in their customer experience?
6) Customer Experience Value Tree
7) Improve Customer Experience for e-Commerce --
Delight your customer , Surprise your Shoppers , Build a community , Up your social media game , Follow an Impactful
strategy , Deliver an Omni Channel Customer Experience , Personalize Customer Experience
8) Process Drivers for Continuous Service Improvement
9) Customer Experience Vision
What Is Net Promoter System?
NPS stands for Net Promoter Score. An easy way to define NPS is to think of it as a growth indicator. After all, it’s a
customer satisfaction metric that helps you find out:
• How satisfied consumers are with your products/services;
• How loyal they are to your brand;
• How likely customers are to recommend your company to others
At the same time, you can also use this metric to predict your customer churn rate, and find out which clients
require an extra boost to become loyal.
How Customer Experience
is measured?
• NPS (Net Promoter
Scores)
• CSAT (Customer
Satisfaction)
• Customer Lifetime
Value ( CLV)
• Customer Effort Scores
(CES)
• Churn Rate
• Retention Rate
• FCR /Repeat/Reopen
Give customers a great experience and they’ll buy more, be more loyal and share their experience with friends. Great. That’s
what every company strives for. What truly makes for a good experience? Speed. Convenience. Consistency. Friendliness.
And one big connector: human touch—that is, creating real connections by making technology feel more human and giving
employees what they need to create better customer experiences.
Customer Satisfaction Score (CSAT)
CSAT stands for Customer Satisfaction Score (not very intuitive, we know), and it – like the name implies – is a CX
metric that directly measures customer satisfaction levels.
CSAT surveys are ideally sent when you want to see how happy clients are with an action your business took, or
certain aspects of your products/services
Customer Effort Score (CES)
CES stands for Customer Effort Score. A good CES definition outlines it as a metric that’s used to measure customer
satisfaction levels by focusing on the efforts customers make to interact with your business’ services and products.
The idea is for the survey to help you find out if customers have a hard time performing certain actions when
interacting with your brand, and take the necessary actions according to the survey data to streamline processes.
CES surveys are usually used:
Right after a client interacted with customer support
Immediately after a customer interacted with a product/service and made a purchase/got a subscription
Whenever a business wants to measure the overall experience consumers have with their products/services
How Does It Work?
CSAT surveys normally
feature a question asking
clients how satisfied they are
with a certain service,
product, or interaction with
your brand. Here’s an
example of a CSAT question
“How would you rate your
overall satisfaction with the
service you received?”
CSAT surveys aren’t limited to
a single question. If you
want, you can use multiple
questions and have open-
ended and closed-ended
questions in the same survey
CSAT/CES/NPS
Customer Lifetime Value (CLV)
Customer lifetime value (CLV) is one of the key stats likely to be tracked as part of a customer experience program.
CLV is a measurement of how valuable a customer is to your company with an unlimited time span as opposed to just
the first purchase. This metric helps you understand a reasonable cost per acquisition.
CLV is the total worth to a business of a customer over the whole period of their relationship. It’s an important metric
as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing
customers is a great way to drive growth.
Example :-
If the CLV of an average coffee shop customer is $1,000 and it costs more than $1,000 to acquire a new customer
(advertising, marketing, offers, etc.) the coffee chain could be losing money unless it pares back its acquisition costs.
Knowing the CLV helps businesses develop strategies to acquire new customers and retain existing ones while
maintaining profit margins.
CLV is distinct from the NPS that measures customer loyalty, and CSAT that measures customer satisfaction because it
is tangibly linked to revenue rather than a somewhat intangible promise of loyalty and satisfaction.
How Do You Measure CLV?
Some companies don’t attempt to measure CLV, citing the challenges of segregated teams, inadequate systems, and
untargeted marketing. When data from all areas of an organization is integrated however, it becomes easier to
calculate CLV.
CLV can be measured in the following way:
• Identify the touch points where the customer creates the value
• Integrate records to create the customer journey
• Measure revenue at each touch point
• Add together over the lifetime of that customer
• At its simplest, the formula for measuring CLV is:
Customer revenue minus the costs of acquiring and serving the customer = CLV
Note :-
CLV is a great metric to track and optimize, but one thing to keep a close eye on too is the cost of that customer to
your business.
This is where Cost to serve comes in. If the cost of serving an existing customer becomes too high, you may be
making a loss despite their seemingly high CLV.
Understanding these numbers over time and being able to track them side by side is the only way to get a true
understanding not only of what’s driving customer spend and loyalty but also what it’s delivering back to the
business’s bottom line.
Customer Churn Rate
Customer churn rate is a measure of how many customers stopped buying from your business or canceled their
service in a given period of time. Basic churn rate is calculated by determining the customers lost during a timeframe
and dividing it by the total number of customers at the start of the timeframe.
HOW TO CALCULATE BASIC CUSTOMER CHURN RATE :- To start, choose a timeframe for your calculation. Companies
typically calculate monthly customer churn rates but you could also do quarterly or annually. In this timeframe,
determine the customers lost and divide it by the total number of customers at the beginning of the month.
First Contact Resolution (FCR)
First Contact Resolution measures the number of customers whose question or request is resolved on the first
attempt
You can define FCR criteria based on your unique business by answering questions such as, ‘Is FCR affected when a
customer contacts the wrong department,’ or ‘Does FCR include abandoned calls?’ or ‘Does resolved mean that the
customer’s problem was solved and they were satisfied?’ The formula for calculating FCR will differ according to how
you define the criteria. However, here’s a basic way to calculate it:
Reverse of FCR – can be calculated as Repeat /Reopen
Formulas for Repeat / Reopen /FCR varies from process to process, customer to customer – basis the business
requirement
Customer Service v/s Customer Experience
Drivers for Customer Experience
Case Study :-1
Hello London: Customer Experience Training for TfL
(https://stepsdrama.com/portfolio_page/customer-experience-training-for-london-bus-drivers/)
Objective :- Designing, delivering, implementing and reinforcing an engaging customer experience programme for
all 26,000 drivers, managers and garage support staff on London’s bus network.
Customer experience programme we created (named ‘Hello London’) was designed around the customer’s
perceptions of the service that they receive and it focused n the following themes:
• Buses not always stopping.
• Drivers could be more helpful and acknowledge their customers.
• Drivers could be better at managing conflict – and sometimes left customers with the perception that the
driver had been rude or showed offensive behaviour.
• Customers could be better informed about their journey by more driver announcements being made.
The project’s key objectives were centred on the four issues highlighted above. This is because the drivers
themselves would all have direct influence on whether the feedback could be improved.
https://youtu.be/NZ2nSh84Wm4
The improvements seen from the 2-day programme were also tracked in TfL’s Bus Customer Satisfaction Survey,
and the results as of Autumn 2019 were :
• Driver friendliness and helpfulness increased by 12%.
• Customer complaints were down 41%.
• Customer commendations are currently at their highest level since the survey began, with a 77%
increase.
• 12% decrease in customer complaints about buses not stopping
• 57% increase in drivers making announcements when needed.
What customer value most in their customer experience:-
Prices and Quality remain top of mind for customers as they make purchasing choices. But when customer think about their
interactions, positive experience influences purchasing decision in almost every industry. Ecommerce (78%) , HealthCare (82%) ,
Banking (75%) , Restaurants & Food (76%) , and Telecom (63%)
Level of Importance
C
S
A
T
Customer Experience Value Tree :-
The relative weight of each of these drivers can be derived through statistical modelling. In order to manage the elements that
drive value, a company needs to establish their customers’ perception of their performance and also the perceived performance
of their competition
Improve Customer Experience for ecommerce :-
Delight your customers:-
Some customer delight ideas for e-commerce are as follows
• Loyalty points after customers purchase products, which can be redeemed later
• Thank you emails after shopping
• Referral program that will give benefits to both your existing customers, and new shoppers as well
• Free gifts such as t-shirts, mugs or key chains along with the order to your most loyal customers
Surprise your Shoppers :-
Online buyers like surprises. You can introduce surprises during the buyer’s journey to enhance the
customer experience. It is often recommended to offer free shipping. Improve your sales by
implementing this strategy a bit differently. Instead of being brazen about it, mention it during the
checkout process. This will encourage the shopper to buy from you again and help spread your word of
mouth in their network.
Build a community :-
A community is a group of people who are die-hard fans of your products. It is the end result of
everything you do, represent and stand for as a brand. Community members are advocates of your
products. Social media and email are two of the most potent channels to build a community
Up your social media game :-
Social media allows brands to project their unique brand voice. If it’s not feasible for you to have a
dedicated social media person at the moment, chalk out a specific amount of time every day to respond
to social media queries pertaining to your store. Make sure to address each query and review whether
positive or negative on Facebook, Twitter, Instagram etc.
Follow an Impactful strategy :-
The purpose of content marketing is to help your shoppers to solve their biggest problems. You can
incorporate blog posts, tips, interviews, videos and infographics related to the products you sell. For
example, if you run an eCommerce store focused on fashion products, you can create content that gives
style advice, tips, fashion trends, etc. Always make sure to plan this out on a content calendar
Deliver an Omi channel Customer Experience :-
Your customers are present across all channels on the internet. You should be as well! Omnichannel
marketing can greatly improve conversions. Make sure that the necessary contact details such as email
addresses and contact details are clearly visible on your website.
Incorporate live chat on your website that lets you communicate with your customers in real-time. The
evolution of chatbots has made it easier for the customer service department to be available round-the-
clock and automate responses to frequently asked questions.
Personalize Customer Experience :-
We are in the age of personalization. Personalized emails are no longer sufficient. You need
to personalize the shopping experience throughout the buyer’s journey, based on different variables.
Make use of recommendation engines to suggest personalized product recommendations based on the
user’s location, shopping and browsing history.
Process Drivers for Continuous Service Improvement
Common Service
Language
Service
Communications
Service Improvement
Process
Engaging Service
Vision
Service
Reorganizations &
Rewards
Service recovery &
Guarantee
Service Staff
Recruitment
Voice of Customer
Service
Benchmarking
New staff orientation
Service Measure and
Metric
Service Role
Modeling
Continuous Service Improvement
Customer Experience Vision:-
Amazon’s mission statement is to “serve consumers through online and physical stores and focus
on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-
centric company, where customers can find and discover anything they might want to buy online,
and endeavors to offer its customers the lowest possible prices.”
Ab har wish hogi poori!
Flipkart Values :- 1) Customer First 2) Ownership 3) Bias of Action 4) Audacity 5) Respect
To be the leading provider of financial services in India and a major global bank. Mission: ICICI will
leverage our people, technology, speed and financial capital to: be the banker of the first choice
for our customers by delivering high quality, world-class products, and services.
• Dedication to every client's success
• Innovation that matters - for our company and for the world
• Trust and personal responsibility in all relationships
To make the world a more stylish, colorful and happier place. Mission: Use technology to
democratize fashion & lifestyle and help people look good. Myntra is a meritocratic, non-
hierarchical and fun workplace. Our employees are empowered with a high degree of ownership
and accountability.

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Customer Experience -- Type of measurement system s

  • 1. Customer Experience Nilesh Jajoo Content :- 1) Customer Experience Journey and measuring system • What’s is Net Promoter System • Customer Satisfaction (CSAT) • Customer Effort scores • CSAT v/s CES v/s NPS • CLV – Customer Life Value • Customer Churn • FCR /Repeat /Reopen 2) Customer Experience v/s Customer Satisfaction? 3) Drivers for Customer Experience 4) Case Study ( Customer Experience Training for TfL) 5) What customer value most in their customer experience? 6) Customer Experience Value Tree 7) Improve Customer Experience for e-Commerce -- Delight your customer , Surprise your Shoppers , Build a community , Up your social media game , Follow an Impactful strategy , Deliver an Omni Channel Customer Experience , Personalize Customer Experience 8) Process Drivers for Continuous Service Improvement 9) Customer Experience Vision
  • 2. What Is Net Promoter System? NPS stands for Net Promoter Score. An easy way to define NPS is to think of it as a growth indicator. After all, it’s a customer satisfaction metric that helps you find out: • How satisfied consumers are with your products/services; • How loyal they are to your brand; • How likely customers are to recommend your company to others At the same time, you can also use this metric to predict your customer churn rate, and find out which clients require an extra boost to become loyal. How Customer Experience is measured? • NPS (Net Promoter Scores) • CSAT (Customer Satisfaction) • Customer Lifetime Value ( CLV) • Customer Effort Scores (CES) • Churn Rate • Retention Rate • FCR /Repeat/Reopen Give customers a great experience and they’ll buy more, be more loyal and share their experience with friends. Great. That’s what every company strives for. What truly makes for a good experience? Speed. Convenience. Consistency. Friendliness. And one big connector: human touch—that is, creating real connections by making technology feel more human and giving employees what they need to create better customer experiences.
  • 3. Customer Satisfaction Score (CSAT) CSAT stands for Customer Satisfaction Score (not very intuitive, we know), and it – like the name implies – is a CX metric that directly measures customer satisfaction levels. CSAT surveys are ideally sent when you want to see how happy clients are with an action your business took, or certain aspects of your products/services Customer Effort Score (CES) CES stands for Customer Effort Score. A good CES definition outlines it as a metric that’s used to measure customer satisfaction levels by focusing on the efforts customers make to interact with your business’ services and products. The idea is for the survey to help you find out if customers have a hard time performing certain actions when interacting with your brand, and take the necessary actions according to the survey data to streamline processes. CES surveys are usually used: Right after a client interacted with customer support Immediately after a customer interacted with a product/service and made a purchase/got a subscription Whenever a business wants to measure the overall experience consumers have with their products/services How Does It Work? CSAT surveys normally feature a question asking clients how satisfied they are with a certain service, product, or interaction with your brand. Here’s an example of a CSAT question “How would you rate your overall satisfaction with the service you received?” CSAT surveys aren’t limited to a single question. If you want, you can use multiple questions and have open- ended and closed-ended questions in the same survey
  • 4. CSAT/CES/NPS Customer Lifetime Value (CLV) Customer lifetime value (CLV) is one of the key stats likely to be tracked as part of a customer experience program. CLV is a measurement of how valuable a customer is to your company with an unlimited time span as opposed to just the first purchase. This metric helps you understand a reasonable cost per acquisition. CLV is the total worth to a business of a customer over the whole period of their relationship. It’s an important metric as it costs less to keep existing customers than it does to acquire new ones, so increasing the value of your existing customers is a great way to drive growth. Example :- If the CLV of an average coffee shop customer is $1,000 and it costs more than $1,000 to acquire a new customer (advertising, marketing, offers, etc.) the coffee chain could be losing money unless it pares back its acquisition costs. Knowing the CLV helps businesses develop strategies to acquire new customers and retain existing ones while maintaining profit margins. CLV is distinct from the NPS that measures customer loyalty, and CSAT that measures customer satisfaction because it is tangibly linked to revenue rather than a somewhat intangible promise of loyalty and satisfaction. How Do You Measure CLV? Some companies don’t attempt to measure CLV, citing the challenges of segregated teams, inadequate systems, and untargeted marketing. When data from all areas of an organization is integrated however, it becomes easier to calculate CLV. CLV can be measured in the following way: • Identify the touch points where the customer creates the value
  • 5. • Integrate records to create the customer journey • Measure revenue at each touch point • Add together over the lifetime of that customer • At its simplest, the formula for measuring CLV is: Customer revenue minus the costs of acquiring and serving the customer = CLV Note :- CLV is a great metric to track and optimize, but one thing to keep a close eye on too is the cost of that customer to your business. This is where Cost to serve comes in. If the cost of serving an existing customer becomes too high, you may be making a loss despite their seemingly high CLV. Understanding these numbers over time and being able to track them side by side is the only way to get a true understanding not only of what’s driving customer spend and loyalty but also what it’s delivering back to the business’s bottom line. Customer Churn Rate Customer churn rate is a measure of how many customers stopped buying from your business or canceled their service in a given period of time. Basic churn rate is calculated by determining the customers lost during a timeframe and dividing it by the total number of customers at the start of the timeframe. HOW TO CALCULATE BASIC CUSTOMER CHURN RATE :- To start, choose a timeframe for your calculation. Companies typically calculate monthly customer churn rates but you could also do quarterly or annually. In this timeframe, determine the customers lost and divide it by the total number of customers at the beginning of the month.
  • 6. First Contact Resolution (FCR) First Contact Resolution measures the number of customers whose question or request is resolved on the first attempt You can define FCR criteria based on your unique business by answering questions such as, ‘Is FCR affected when a customer contacts the wrong department,’ or ‘Does FCR include abandoned calls?’ or ‘Does resolved mean that the customer’s problem was solved and they were satisfied?’ The formula for calculating FCR will differ according to how you define the criteria. However, here’s a basic way to calculate it: Reverse of FCR – can be calculated as Repeat /Reopen Formulas for Repeat / Reopen /FCR varies from process to process, customer to customer – basis the business requirement Customer Service v/s Customer Experience
  • 7. Drivers for Customer Experience Case Study :-1 Hello London: Customer Experience Training for TfL (https://stepsdrama.com/portfolio_page/customer-experience-training-for-london-bus-drivers/) Objective :- Designing, delivering, implementing and reinforcing an engaging customer experience programme for all 26,000 drivers, managers and garage support staff on London’s bus network. Customer experience programme we created (named ‘Hello London’) was designed around the customer’s perceptions of the service that they receive and it focused n the following themes: • Buses not always stopping. • Drivers could be more helpful and acknowledge their customers. • Drivers could be better at managing conflict – and sometimes left customers with the perception that the driver had been rude or showed offensive behaviour.
  • 8. • Customers could be better informed about their journey by more driver announcements being made. The project’s key objectives were centred on the four issues highlighted above. This is because the drivers themselves would all have direct influence on whether the feedback could be improved. https://youtu.be/NZ2nSh84Wm4 The improvements seen from the 2-day programme were also tracked in TfL’s Bus Customer Satisfaction Survey, and the results as of Autumn 2019 were : • Driver friendliness and helpfulness increased by 12%. • Customer complaints were down 41%. • Customer commendations are currently at their highest level since the survey began, with a 77% increase. • 12% decrease in customer complaints about buses not stopping • 57% increase in drivers making announcements when needed. What customer value most in their customer experience:- Prices and Quality remain top of mind for customers as they make purchasing choices. But when customer think about their interactions, positive experience influences purchasing decision in almost every industry. Ecommerce (78%) , HealthCare (82%) , Banking (75%) , Restaurants & Food (76%) , and Telecom (63%) Level of Importance C S A T
  • 9. Customer Experience Value Tree :- The relative weight of each of these drivers can be derived through statistical modelling. In order to manage the elements that drive value, a company needs to establish their customers’ perception of their performance and also the perceived performance of their competition Improve Customer Experience for ecommerce :- Delight your customers:- Some customer delight ideas for e-commerce are as follows • Loyalty points after customers purchase products, which can be redeemed later • Thank you emails after shopping • Referral program that will give benefits to both your existing customers, and new shoppers as well • Free gifts such as t-shirts, mugs or key chains along with the order to your most loyal customers Surprise your Shoppers :- Online buyers like surprises. You can introduce surprises during the buyer’s journey to enhance the customer experience. It is often recommended to offer free shipping. Improve your sales by implementing this strategy a bit differently. Instead of being brazen about it, mention it during the checkout process. This will encourage the shopper to buy from you again and help spread your word of mouth in their network.
  • 10. Build a community :- A community is a group of people who are die-hard fans of your products. It is the end result of everything you do, represent and stand for as a brand. Community members are advocates of your products. Social media and email are two of the most potent channels to build a community Up your social media game :- Social media allows brands to project their unique brand voice. If it’s not feasible for you to have a dedicated social media person at the moment, chalk out a specific amount of time every day to respond to social media queries pertaining to your store. Make sure to address each query and review whether positive or negative on Facebook, Twitter, Instagram etc. Follow an Impactful strategy :- The purpose of content marketing is to help your shoppers to solve their biggest problems. You can incorporate blog posts, tips, interviews, videos and infographics related to the products you sell. For example, if you run an eCommerce store focused on fashion products, you can create content that gives style advice, tips, fashion trends, etc. Always make sure to plan this out on a content calendar Deliver an Omi channel Customer Experience :- Your customers are present across all channels on the internet. You should be as well! Omnichannel marketing can greatly improve conversions. Make sure that the necessary contact details such as email addresses and contact details are clearly visible on your website. Incorporate live chat on your website that lets you communicate with your customers in real-time. The evolution of chatbots has made it easier for the customer service department to be available round-the- clock and automate responses to frequently asked questions. Personalize Customer Experience :- We are in the age of personalization. Personalized emails are no longer sufficient. You need to personalize the shopping experience throughout the buyer’s journey, based on different variables. Make use of recommendation engines to suggest personalized product recommendations based on the user’s location, shopping and browsing history. Process Drivers for Continuous Service Improvement Common Service Language Service Communications Service Improvement Process Engaging Service Vision Service Reorganizations & Rewards Service recovery & Guarantee Service Staff Recruitment Voice of Customer Service Benchmarking New staff orientation Service Measure and Metric Service Role Modeling Continuous Service Improvement
  • 11. Customer Experience Vision:- Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer- centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” Ab har wish hogi poori! Flipkart Values :- 1) Customer First 2) Ownership 3) Bias of Action 4) Audacity 5) Respect To be the leading provider of financial services in India and a major global bank. Mission: ICICI will leverage our people, technology, speed and financial capital to: be the banker of the first choice for our customers by delivering high quality, world-class products, and services. • Dedication to every client's success • Innovation that matters - for our company and for the world • Trust and personal responsibility in all relationships To make the world a more stylish, colorful and happier place. Mission: Use technology to democratize fashion & lifestyle and help people look good. Myntra is a meritocratic, non- hierarchical and fun workplace. Our employees are empowered with a high degree of ownership and accountability.