Performance Analysis

Key Performance Indicator Customer Effort Score (CES) in Startups

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As stated in previous articles, retaining your customer and making them loyal is one of the most important issues that startups should pay attention to. There are various methods for measuring the level of satisfaction with the products and services of businesses and factories; most of these methods are limited to a simple survey; today, however, with the advancement of technology, different methods have been developed to measure the satisfaction level. Although we have elaborated on Net Promoters Rate, we are going to investigate another indicator related to customer satisfaction named key performance indicator of Customer Effort Score (CES) in this article.  

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What is the key performance indicator Customer Effort Score (CES) and how is it calculated? 

The key performance indicator of Customer Effort Score (CES) is a metric to measure customer satisfaction with the experience of using your product or service. Customers rank their experience of using your product/ service from very difficult to very easy through the indicator of Customer Effort Score. In fact, it indicates how much effort has been required to use the product and services of your business. The following figure shows the key performance indicator of Customer Effort Score along with the NPS and CSAT indicators. 

According to statistics, measuring the ease of use of a product / service of a business, is a better criterion to measure customer loyalty compared to direct measurement of Customer Satisfaction Score (CSAT). Measuring customer satisfaction using Customer Effort Score is one of the most popular ways which many businesses use. In 2010, an article was published in the Harvard Business Review entitled “Stop Trying to Delight Your Customers” related to the key performance indicator of Customer Effort Score and its rate. According to this article, one of the best ways to increase customer loyalty is to make it easier for the customer to use the products and services of your business. It is also stated in this article that when it comes to providing services, businesses can bring about customer loyalty through helping their customers and facilitation and acceleration of solving their problems. 

When is the right time to use Customer Effort Score? Using the key performance indicator of Customer Effort Score in the right time is one of the necessary issues to strengthen the effectiveness of this indicator. It is recommended to use the key performance indicator of Customer Effort Score in the following situations: 

1) Immediately after the interaction leading to purchase or distribution of the product or service. 

One of the best occasions for conducting survey and measuring the key performance indicator of Customer Effort Score is immediately after the customer purchase. According to research, Customer Satisfaction Score (CSAT) can be examined in the various circumstances but Customer Effort Score must be .investigated at the same time of purchase. 

2) After customer interaction with customer service department 

After solving the customer’s problems, conducting a survey on the KPI of Customer Effort Score enables the business to have comprehensive information on the problem solution and how to deal with it. 

3) Collective investigation and evaluation of customer experience while using the product or brand  

In addition to the two issues previously mentioned, businesses need to have a broad overview of the amount ease of use and accessibility of their product/ service and support and maintenance services while customers are using their products/ services. 

In general, there is no specific standard for the key performance indicator of Customer Effort Score, it is natural that similar to any kind of score, the higher the Customer Effort Score, the better user experience. Generally, an answer of 5 or higher is considered a good score, and lower scores indicate that users have not experienced required ease-of-use with your product and service. The following are some of the advantages and disadvantages of the key performance indicator of Customer Effort Score: 

Advantages of Customer Effort Score

• Customer Effort Score is one of the most powerful tools for predicting customer interactions and it helps to forecast the customer’s future purchases. Research shows that 94% of customers who have experienced ease of use, stated that they are willing to repeat their purchase. 

• Customer Effort Score is used to predict customer’s return. Statistics show that there are 81% of customers who have made a lot of effort to use your product or service, pass on their negative feedback to others, which ultimately reduces the rate of return in that business. 

• Since Customer Effort Score is a simple way, and most of the customers normally participate in its survey, it is also in the category of key actionable performance indicators and can be used in different businesses and fields. 

Disadvantages of Customer Effort Score

•It is not possible to categorize customers by examining the indicator of Customer Effort Score. 

• Customer Effort Score cannot provide information about the customer’s overall relationship with the business. 

What are the key performance indicators related to Customer Effort Score? 

Since the KPI of Customer Effort Score is placed in the category of customer satisfaction metrics, it is examined along with other indicators in this category such as Net Promoter Score and Customer Satisfaction Score (CSAT). In addition to the mentioned indicators, in order to analyze and examine more closely, other related indicators such as rate of Return and Repeat Purchase Rate are also employed. 

It should be noted that the selection of key performance indicators for a business is influenced by the maturity level of the business, the market in which it operates, the competitive environment and many other factors that require sufficient knowledge and experience. Retiba’s experts are ready to carefully evaluate your startup business model, select key performance indicators, and analyze your business performance. All you have to do is enter your information in the evaluation application form and wait for Retiba’s experts to contact you. 

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