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Key Considerations of Customer Effort Score as a Business Metric

Key Considerations of Customer Effort Score as a Business Metric

The modern era of business has fortified the concept of customer delight which has led to technological transformation in every organization seeking towards achieving business goals. Customer delight has created the need for awesome customer experience. Organizations are focusing more towards creating strategies for improving the service level. But how many times do you think that a customer associates with a brand due to its top class service? How many times the customer comes back to a brand particularly because his query was resolved swiftly? Let me tell you the most important part of the customer lifecycle; they get associated with one brand and then the other.

The happiness of the customer is majorly dependent on the amount of effort that he applies towards obtaining a service. In simple terms, the effort applied by customers in obtaining a service is directly related to the kind of association they will have with that brand. Hence, it is of critical importance that businesses should focus more on building processes that simplifies the buying decision of the customer. Customer effort score is one of the key business metrics that defines the amount of effort applied and the level of satisfaction that customer has attained while associating with a brand. It is of great means for creating loyal customers by reducing the total amount of effort involved by each customer in attaining a particular service.

Let's have a look at some of the key points that any organisation should consider while adopting  customer effort score as a measure:

Clear goals: The relevance of customer effort score (CES) is completely dependent on the level of satisfaction that the customer derives from a particular service. There could be a possibility that the strategy of your organization is built around the basic levels; this could be one of the major reason behind your poor CSAT scores leading towards more customer loss. When it comes to customer intimacy, delighting customers should not be the main goal of the organization, rather it is all about delivering the exact requirement of the customers.

Relationship between customer loyalty and effort score: Loyalty and the value in the relationship is enhanced by the unique experiences that the customers gain from their association with each brand. Comparing customer effort levels with customer retention rates gives a clear picture on the loyalty towards a brand. Low effort of customers also leads to higher spend whereas high effort leads to exhaustion resulting to negative word of mouth from the customers.

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Customer effort drives acquisitions: Studies show that relationship between customer effort score  and net promoter score does exist. Customer effort is known to have a direct impact on customer acquisition as satisfied customers are more likely towards recommending or spreading good word of mouth about a brand. Customer acquisition is not an easy task but taking steps to ensure that customer experiences are effortless across all channels can possibly help organizations in boosting growth and loyalty in this rapidly changing environment.

Necessity of Human interaction: Customer effort is not considered relevant to every interactions or transactions taking place. There might be a scenario when the customer wants to go through a purely transactional activity like paying a bill or changing contact details. In this case, effortless experience acts as the key differentiator. Robotic interactions or IVR interactions may not be helpful in  every case where the process is lengthy, therefore the customer would like to speak to a live support instead of being served by machines.

For eg., a health patient wouldn’t appreciate interacting with an automated robotic voice when one needs urgent medical attention. As a healthcare provider, you just can’t integrate IVR to automate every voice or non-voice interaction process on the opportunity cost of patient health risk.

Related: How Quality Customer Service can drive your Business Growth


Topics: Customer Service Call Center Management Quality Monitoring