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Customer Effort Score

Customer Effort Score. WHY?.

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Customer Effort Score

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  1. Customer Effort Score

  2. WHY? • Research in the USA demonstrates that ‘Customer Effort’ is a better predictor of customer loyalty and future revenue than either Net Promoter Score or traditional ‘CSAT’ type measures. For the first time, BDRC Continental offers subscribers the opportunity to understand the relative performance of different organisations on this key measure, right across financial services.

  3. Customer Loyalty - We all want it…but how do we get it? I intend to continue doing business with you I say good things/ won’t say bad things about you I’m increasing my spending

  4. Customer Loyalty…through delighting our customers? • A study of more than 75,000 customers* has found that these above & beyond efforts make only a marginal difference to customer loyalty. • All customers want is a simple, quick solution to their problem. Rather than delighting customers, companies need to focus on meeting their needs - reducing a customer’s effort - the work they must do to get their problem solved. And it’s this that builds loyalty. *Source: Corporate Executive Board, Harvard Business Review July-August 2010

  5. There is often very little relationship between satisfaction & loyalty The study conducted by the Corporate Executive Board* found that 20% of ‘satisfied’ Customers intended to leave, whereas 28% of ‘dissatisfied’ customers intended to stay. Even more worrying - rather than drive loyalty, a customer service experience can often undermine it. Customers are four times more likely to leave a service interaction disloyal than loyal. Great service does little to drive loyalty, but bad customer service can often result in disloyalty. 25% of customers are likely to say something positive about their customer service experience 65% are likely to speak negatively 48% of customers with a negative experience told 10+ people about it 23% of customers with a positive service interaction told 10+ people about it Therefore traditional customer satisfaction benchmarking & tracking may not be the best measure to use to predict loyalty

  6. So in answer lies in… reducing Customer Effort • Make it easy. • Help customers solve their problems quickly & easily. Reducing customer effort drives loyalty. • Although NPS was a better gauge of customer loyalty than measuring CSAT, Customer Effort Score outperformed both in customer service interactions.

  7. The Customer Effort Score (CES) better predicts loyalty • Low effort? - 94% said they intended to repurchase; - 88% said they would increase their spending. • Hard time solving problems? - 81% said they intended to spread negative word of mouth

  8. How does CES work? The Customer Effort Score is measured by asking one single question: On a scale of 1 (very low effort) to 5 (very high effort) - How much effort did you personally have to put into getting your request dealt with? The response puts each customer into one of three groups: • Low Effort (score 1-2) are those who found it EASY to get their recent request dealt with • Medium effort (score 3) are those who found it neither high nor low effort • High Effort (score 4-5) are those who found it HARD to get their recent request dealt with The Customer Effort Score is calculated by subtracting % of HIGH EFFORT from % of LOW EFFORT, to give a ‘net’ score. CE scores range from -100 to +100

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