Best Practices in Customer Experience (CX) Measurement and Analytics

The following are the top 10 concepts you will learn in this blog article:

  1. What are the most common set of metrics used to measure customer experience quality and effectiveness.

  2. What these common customer experience metrics are used for

  3. When are these best practice customer experience metrics best measured

  4. What a customer journey (a.k.a. customer life-cycle) is and how it related to customer experience metrics

  5. Why a balanced scorecard is better than any one single customer experience metric

  6. Why NPS is not sufficient to provide a comprehensive picture of your customer experience quality and effectiveness

  7. The top 10 best practices in developing a world-class customer experience measurement program and balanced scorecard

  8. Sample of what a customer journey looks like as well the customer experience analytics collected at each journey phase

  9. Examples of embedded detailed customer journey phase analytics paired with summary & executive level customer experience analytics

  10. How to develop customer experience analytics that also drive the development and support of a customer first, surprise and delight culture.

Peter Drucker once said “If you can’t measure it, you can’t manage it”. This ageless and famous quote applies to almost all situations and customer experience is no exception. There is virtually no way to determine how effectively your customers are being treated without a robust set of measures to gauge how well you are fulfilling their needs, wants, desires, etc. In this blog article, we will cover the specific metrics that best practice companies use to measure their customer experience delivery along with it is done.


Peter Drucker's Famous Measurement Quote

Peter Drucker’s Famous Measurement Quote

The Chart below illustrates some of the more commonly used customer experience (CX) metrics and how/where they are used in the customer journey continuum.

Commonly Used Best Practice Customer Experience (CX) Metrics

Commonly Used Best Practice Customer Experience (CX) Metrics

  • Customer satisfaction (CSAT) – one of the most common uses of customer satisfaction ratings is on ratings websites like Yelp, TripAdvisor, Facebook, Google, etc. using the now famous five star rating system seen below. Other customer satisfaction feedback mechanisms are more sophisticated, querying customers on an array of customer experience topics that are multi-dimensional in nature.

Customer Satisfaction Score Example

Customer Satisfaction Score Example

  • Customer Churn Rate: Customer churn rate is almost always expressed in terms of a percentage and is a product of the number of lost customers divided by the number of retained customers for any given period (day, week, month, Quarter, Year).

Customer Churn Rate Example Calculation

Customer Churn Rate Example Calculation

  • Customer Effort Score: Customer Effort Score is recorded to keep a pulse on how easy it is for a customer to accomplish certain transactions with your company (e.g. return a product, handle an issue, inquire about upgrades, etc.). It is obtained via surveying customers following a major interaction and is expressed in terms of a numeric, typically on a 1-10 or 1 to 7 scale. Here is a sample I developed for a client where the score is translated into a 1 to 7 scale (from “Strongly Disagree”=1 to “Strongly Agree”=7).

Customer Effort Score Example Quantification

Customer Effort Score Quantification Example 

  • Customer Average Time to Resolution (CATTR): This metric is a measure the average time it takes to resolve categories of customer interactions (inquiry, product issue, service issue, contract renewal, return, etc.). This is expressed in average time per interaction category as shown in this example

Customer Average Time to Resolution (CATTR) Example Calculation

Customer Average Time to Resolution (CATTR) Example Calculation

  • First Contact Resolution (FCR): All companies should strive for what is called “one and done” customer service, enabling the customer to handle any need with one short effort. The benefits of achieving this are endless including the following: Research I have read has indicated that a 1% increase in FCR rates translate into decreasing operating costs by 1%, increases of both customer satisfaction and employee scores by 1-3% as well as increasing customer loyalty (up to 20%). How companies measure FCR vastly differs including surveying customers, tracking it in a CRM system, tracking it in a contact center database or querying the customer at the end of a call. Many companies sadly do not track this metric and lose out on the visibility and resulting benefits this provides.

One & Done Customer Service

One & Done Customer Service Creates Elated Customers

  • Contract Renewal Rates: This metric is more company specific but, when applicable and used in conjunction with the other metrics, provides a great barometer on the health of the contract oriented business. For example, you might be experiencing great FCR and customer average time to resolution, but contract renewal rates might be lagging due to a perceived lack of value by the customer for the price paid. By using this metric in a balanced scorecard along with CSAT, FCR, CATTR you have a much more comprehensive view of total customer satisfaction than with just a few measures, allowing you to reduce business risk and potential revenue surprises.

High Contract Renewals = High Customer Satisfaction

High Contract Renewals = High Customer Satisfaction

  • Net Promoter Score (NPS): Net Promoter Score (NPS) is the most commonly used and simplest customer experience metric that exists.  NPS is typically measured by asking the following question:

How likely are you to recommend [business, service, product] to a friend or colleague?

Customers rate your company, service, product, etc. on a scale of 0 to 10. Respondents are grouped in the following categories:

    • Customer Promoters (Score 9-10)

    • Customer Passives (Score 7-8)

    • Customer Detractors (Score 0-6)

Calculate Net Promoter Score is typically calculated by subtracting the percentage of net detractors from net promoters. Here is a great illustration on how this is determined, calculated:

Net Promoter Score Example Calculation

Net Promoter Score Example Calculation

It has been found that only those customers who provide a rating of a 9 or 10 on the NPS scale are those who will truly become adjunct volunteer company sales and marketing agents and are a result of experiencing surprise and delight levels of customer service. These same elated customers are the ones who tell everyone they meet about your exceptional company and your amazing, services, products, customer service, etc. More on this in a future blog that will address the topic of “Delivering Consistent Surprise and Delight Customer Service”.


On this last point of NPS, there exist many misnomers about what to measure for customer experience effectiveness. Many professionals I have met in my consulting travels have the misconception that measuring one metric like Net Promoter Score (NPS) is sufficient to measure the quality of the customer experience you are delivering to their customers.  This is equivalent to believing that taking your body temperature is sufficient to determine your overall health when in actuality there are many measures taken together that help make this healthy/not healthy determination. The same is true for measuring the quality of your customer experience. While NPS is a good measure for helping to determine the quality of your customer experience effectiveness when used correctly, similar to body temperature, it must be augmented with many other measures to determine its overall effectiveness.


Other customer experience metrics include employee turnover (a leading indicator of customer satisfaction), year-over-year same customer spend, customer loyalty and average longevity, customer acquisition rates over time, etc. I will go more into this when I cover the topic of customer journeys.

Customer Experience, Satisfaction Humor

Customer Experience, Satisfaction Humor

First, let’s examine my recommended top 10 best practices for measuring your customer experience delivery effectiveness.

  1. Monitor Customer Experience Metrics in Real Time and continuously improve customer experience programs based on actual CX metrics/program performance.

  2. Track top level Customer Experience (CX) Metrics for all customers (i.e. average customer satisfaction) and for individual customer segments (i.e. price sensitive customers or high value customers).

  3. Request both customer qualitative and quantitative ratings throughout the Customer Life-cycle during critical customer interactions. Accomplish this my providing a conduit for your customers to become brand partners who are invited to participate in providing program feedback prior to full launch, provide detailed focus group feedback on selected topics and for most valuable customers to participate in exclusive customer advisory boards.

  4. Ensure group appropriate customer experience metrics are being delivered to each layer of the organization (highest importance summary level for CEO – Chief Customer Experience officer, more granular metrics for tactical managers and line staff).

  5. Cultivate and measure your own internal customer metrics and calibrate against externally measured CX like the American Customer Satisfaction index or metrics collected by firms like the Service Management Group (Kansas City), Direct Opinions (Beachwood Ohio), C-Space (Boston), Engine Group (NYC), etc.

  6. Track customer experience effectiveness via a balanced scorecard of Customer Experience Metrics including customer satisfaction, NPS, Customer Churn and renewal rates, customer spend per year and employee turnover (a proven leading indicator of customer satisfaction).

  7. Ensure the collection and dissemination of Customer Experience metrics meet the golden rules of being seamless to your customers, easy to obtain and are ingrained as part of normal business operations.

  8. Review customer experience metrics during key management reviews like operational reviews, leadership team reviews and financial reviews. Ensure action plans are developed for metrics above and below expected performance levels.

  9. Ensure that the company culture and training is supported and in-line with customer experience metrics by making everyone’s KPIs metrics align to the performance of key customer metrics.

  10. Develop customer journeys (a.k.a. customer life-cycles) and develop customer experience metrics for each major step in the customer journey.

The last best practice is to identify key end-to-end customer journeys or paths of customer progression when engaging your company and then attach appropriate customer experience journey analytics along those customer paths. Once you understand the different touch-points and how they impact the overall customer journey, you will be in a far better position to pick the most appropriate metric to use at each touch-point. The best metric is company determined based on a developed set of customer experience standards and goals.


In my example in the introduction, Net Promoter Score (NPS – which answers the question, “How likely are you to recommend [business, service, product] to a friend or colleague?” and is rated on a 0 to 10 score), is not a total customer experience solution metric. The reason is that NPS works best when measured at the end of a customer journey (a.k.a. customer life-cycle), such as at contract renewal time. For example, if a customer is getting frustrated returning a product or trying to resolve a service issue, then they will likely defect long before they are queried on NPS. It is better to measure customer satisfaction right after an interaction to have real-time insights into a customer’s experience satisfaction and not wait until NPS query time.


Here is a sample customer journey I developed from a recent client consulting engagement along with the metrics they decided to collect at an aggregate level as well as along this customer journey. Some of the metrics and customer journey names have been changed to protect my client’s identity. In addition, this client wanted to err on the side of measuring many metric points frequently and not all clients are this exhaustive in measuring their program. Some of these metrics were already in place before we added many others.

Customer Journey Analytics Illustration

Customer Journey Analytics Illustration

The above illustrates one of the main customer journeys (discover to renewal) in the life of a customer along with the Macro customer phases in that journey (i.e. 1-customer discovery, 2-customer sales & on-boarding, 3-customer support, 4-customer renewals) as well as the micro phases in that journey (product, service credibility evaluation).


The above chart also illustrates the fact that it is important to track global/summary metrics at the top of the organization (i.e. total customer satisfaction) in order to gauge overall customer experience health and to balance these with more granular measures along the customer journey phases (i.e. First Contact Resolution in the on-boarding and support phases). While there is a recommended set of best practice metrics to collect for standard customer journeys, each company will make a different selection of the mix of metrics. For example, if a company’s life blood is contract renewals then the metrics will be more geared toward gauging the customer’s satisfaction for the existing contract experience (value for contract price, value of contract to client’s business, contract terms & ease of doing business vs. perhaps product return rates).


One best practice embedded in the above is to report on the number of customer stars (in the 1st and 3rd phases above) per period whereby employees who have delivered exceptional “surprise and delight customer service” are recognized and rewarded. Customers of this company as well as executives from the company are provided incentives to recognize employees who went above and beyond in delivering exceptional customer service. This company tracks this via reports and recognizes top employee customer stars quarterly and annually with top company customer stars getting recognized, rewarded, etc. This helps build a culture of support for being customer exceptional with top stories being told over and over to teach employees what it means to be customer exceptional  and encourage others to emulate this valued behavior.


In summary, measuring your customer experience quality/effectiveness must be guided by a set of best practices to be effective and comprehensive. The use of customer journeys as well as customer experience journey analytics, balanced by summary customer experience metrics comprises a customer experience balanced scorecard.  By not measuring or under-measuring your customer experience delivery effectiveness, you are flying blind and having to take guesses as to whether your program is delivering exceptional customer service to your customers or not. Only when you reach the level of consistently delivering exceptional “surprise and delight” customer service will you reap bottom line benefits of accelerated customer acquisition, reduced sales and marketing costs, increased customer loyalty and increased employee and customer satisfaction.


With all this being true, there is no excuse to not actively work on creating the best customer experience program possible!!

If your organization is seeking experienced assistance in measuring and improving your customer service and customer experience, then give me a call or e-mail me at 518-339-5857 or


Lastly, this is just one article of nearly 50 articles I have written on Customer strategy, customer experience, CRM, marketing, product management, competitive intelligence, corporate innovation, change management – all of which I have significant experience in delivering for Fortune 500 companies.  In fact, my blog is now followed by nearly 121,000 world-wide and was just named one of the top 100 CRM blogs on the planet by Feedspot, alongside, Infor, Microsoft, SAS, etc. – Reference this informative site here:

The Top 10 Best Practices in the Development of Customer Experience (CX) Excellence Programs (CEEPs)

Customer Experience (CX) is becoming a greater focus for many companies world-wide. WHY? The development of Customer Experience Excellence has been demonstrated to enable marketplace competitive advantage and to create fiercely loyal customers who are willing to advocate for the company and its brands and are also willing to pay more for their products and services in exchange for uniquely excellent customer service. In addition, when customers are provided with truly exceptional/memorable customer service time and time again, they repeatedly tell positive stories about their amazing customer experience, telling as many people as they can influence about your company, how their experience made a positive difference in their lives and how your company cares about them vs. your competitors. In essence, delighted customers transition themselves into adjunct company marketing and sales agents for the company that is equal to millions in company paid efforts, plus their grass-root and viral influence is judged at least 5-10x more credible/believable vs. company paid advertising, marketing and sales.


The chart below is a small sample of the benefits gained by my clients and many other companies as a result of the systemic implementation of a customer experience excellence program. In addition to the above, employees are found to be much more content working for a company who truly cares about the well being of their customers and the service they are receiving.  It makes employees, as a client employee once said in a leadership meeting, “ I am Part of it, Proud of it”. In essence, making customers happy in turn makes employees feel satisfied.

Benefits of Having an Excellent Customer Experience
Benefits of Having an Excellent Customer Experience

As a result of my experience developing Customer Experience Excellence and CRM Programs for numerous Fortune 500 companies including {American Express, Intuit Software, HP, Ritz-Carlton, Pfizer, Wells Fargo, AT&T, Starwood Hotels, Marriott, JC Penney, Macy’s, Toyota of America, Nissan, General Motors, Lenox, Southwest Airlines, Astra-Zeneca, Bristol-Myers Squibb, Welch Allyn Medical Systems, Vanguard, Citibank, Allstate, AXA Insurance, SONY, Siebel & Oracle Systems, SAS Software, Unica Software, Neopost, Bank of America, Samsung, Chrysler, Toyota, Nissan, Hilton, etc.}, I have developed the following set of top 10 best practices in relation to the development of a customer experience excellence program:


1. The program must be advocated, supported and championed at the CxO level. This is evidenced by the increases in staffing of the position called the “Chief Customer Experience Officer” that most top companies now have.

WHY?:  Forrester reports that 76% of executives say improving CX is a high or critical priority and many companies have established a C-level position to oversee it. Great read, source: “Why every company needs a Chief Customer Experience Officer”, Harvard Business Review:


2. A set of balanced scorecard metrics must be developed to measure the ongoing effectiveness of the program so that it may be continuously improved. A heavy emphasis must be placed on customer ratings of the program and associated service delivery.

WHY?: The metrics are the vision of the program and without these, the program is flying blind on whether the program is resonating with the customer.


3. The customer must be invited, as a brand-company partner, to participate in the program development, roll-out and ongoing evolution.

WHY?: Without really asking the customer about what they want/need directly, all other attempts or approximation of customer needs through analytics or intuition based decision making are merely guesses of what the customer really needs and wants and are likely to miss their mark.


4. The program must be benchmarked against, and kept competitive with, all companies who are considered to be world-class customer experience companies.

WHY?: You might feel you have a great customer experience program, but without quantitatively benchmarking it against the best of the best companies, you will have no idea how really good it is, whether it is falling behind with current/leading practices, etc.


5. Customer Excellence procedures, policies (SOPs) and standards must be developed that are in total alignment with the customer service vision statement and overall strategy.

WHY?: Customer experience excellence procedures are the bridge and playbook that takes the higher level customer service vision and strategy and translates into the behaviors (culture) and major actions are needed on a daily, weekly, monthly, quarterly basis to bring this vision and strategy to life and make it real to every employee.


6. Employees must be supported in the delivery of customer experience excellence by a set of training and development programs that certify them to be able to deliver on the customer service and experience excellence standards, policies, SOPs, etc.

WHY?: The customer experience excellence training programs translate the higher-level customer experience excellence procedures and policies into a detailed playbook of specific and tactical employee actions and interactions that are required to deliver an exceptional customer service experience. In essence, these are the detailed ‘how-to’ of customer experience excellence delivery that makes the program real for front-line and customer facing employees.


7. The program must be underpinned and supported by best of breed technology infrastructure to capture customer knowledge and intelligence, mine customer information, automatically deliver relevant customer information real-time, allow customer to set preferences, etc.

WHY?: Technology will not only become the longitudinal memory for customer insights including needs, wants, preference, etc., but it will also serve to automate the delivery of intelligent customer interactions such that the program doesn’t become burdensome (vs. simple) to operate as it evolves and grows.


8. Related to #7 above, the program must be sophisticated in delivering on the various customer segment needs and wants, yet needs to be simple to engage and manage for customers and employees.

WHY?: People do business with companies that make it easy to do business with – fast, efficient, responsive companies are sought out more than those that are not. In addition, a program that is difficult to administer is at risk for execution errors by employees or by them short-cutting or avoiding the process.


9. The organizational culture at all levels must be created that is supportive of the customer experience excellence standards and all incentives must be aligned to encourage employee excellence in its delivery.

WHY?: Research by Gallup shows that work units in the top quartile in employee engagement outperformed bottom-quartile units by 10% on customer ratings, 22% in profitability, and 21% in productivity — and they experienced lower employee turnover, absenteeism, and safety incidents. In other words, it is difficult (impossible?) to deliver excellence customer service without a great corporate culture.  Original Source:


10. The CEE program must be viewed holistically that takes into consideration people, process, technology and culture (PPTC) capabilities as well as all customer segments across all customer preferred channels of interaction.

WHY?: Pure and simple, a great program is implemented with the full (holistic) spectrum of capabilities considered. Focusing on only 1 or 2 of the 3 pillars of CEE (refer to CEEF framework chart below) will sub-optimize its performance.

Symptoms of a Poor Customer Experience

Symptoms of a Poor Customer Experience

While the previous chart pointed to benefits of implementing customer experience excellence, the above chart, while self-explanatory, highlights a few negative impacts of having poor customer experience delivery. In addition to the above, companies that have a poor customer experience also experience the following:

  1. Market share erosion

  2. Declining customer acquisition success

  3. Declining cross-sell and up-sell success

  4. Customer social sentiment that is increasingly negative across an array of social media platforms

The above chart illustrates that in order to effectively gauge the effectiveness of your current customer experience program, you must be measuring across a number of company areas to determine what is working and what is not. Sound familiar?   2) ” A set of balanced scorecard metrics must be developed to measure the ongoing effectiveness of the program so that it may be continuously improved. A heavy emphasis must be placed on customer ratings of the program and associated service delivery.”

Best Practice Customer Experience Framework

Best Practice Customer Experience Framework

The above chart is a best practice Customer Experience Framework that depicts the major pillars that enable customer experience excellence.

  1. The first pillar is the customer knowledge and insights that enable you to provide the customer with the right interaction at the right time and by the right channel of their choice.

  2. The 2nd is a robust customer strategy and delivery model to define the desired level of customer service delivery and how you will enable it.

  3. The 3rd and last is the development of a customer oriented culture to nurture and expand customer relationships that not only provides a differentiated customer experience, but also drives increased sales, loyalty and spend per customer.

I use this chart above, along with others, to develop the customer strategy, vision, policies, etc. Sound familiar?  5) Customer Excellence procedures, policies (SOPs) and standards must be developed that are in total alignment with the over developed customer strategy.

Key Deliverables in the Development of a  Best Practice Customer Experience

Key Deliverables in the Development of a Best Practice Customer Experience

The above chart is the waterfall development method I use to develop customer experience excellence. With few exceptions, each of the top level items must be mostly developed before the following lower level items can be developed.

For example, the top level CEE program vision, strategy and goals must be developed first, to be used as a guide for the development of its supporting standards, policy and guidelines.  All of these customer experience excellence deliverables align with the ten (10) best practices we covered at the beginning of this article.

Best Practice Customer Experience Development Approach & Methodology

Best Practice Customer Experience Development Approach & Methodology

Above are the depicted major work-streams I employ to develop customer experience excellence for my clients. These major work-streams align to delivering the top 10 CEE best practices as well as my waterfall deliverable development schema in the previous chart.


In summary, improving your customer experience delivery doesn’t have to cost a great deal, can start slowly, can now be measured and the return on investment is generally in multiples (2-10x+) of the cost. Without a delivering an exceptional customer experience (via an exceptional corporate culture),  you will be unable to acquire and retain great employees, will have more costly sales and marketing efforts and your customers will not be acquired as quickly or remain as loyal (vs. competitors). With all this being true, do you really have any excuse at all remaining not to actively work on ensuring you are delivering the best company customer experience possible as to create competitive marketplace advantage?!

If your organization is seeking experienced assistance in measuring and improving your customer service and customer experience, then give me a call or e-mail me at 518-339-5857 or

Lastly, this is just one article of 40+ total I have written on customer strategy, customer experience, CRM, marketing, product management, competitive intelligence, corporate innovation, change management – all of which I have significant experience in delivering for Fortune 500 companies.  In fact, my blog is now followed by nearly 121,000 world-wide and was just named one of the top 100 CRM blogs on the planet by Feedspot, alongside, Infor, Microsoft, SAS, etc. – Reference this informative site here:

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