A company is considered healthy or weak by the regular sales it does, and the deals will be done only when there are loyal customers. Do you know disloyal customers cost a company millions of dollars every year? But have you ever thought about what makes a customer disloyal towards a company?
According to a survey conducted by CEB Global, when a consumer puts effort into interacting with the company, it is directly proportional to their loyalty towards it. 96% of consumers turn disloyal because their queries are not dealt with properly by the company.
And have you ever thought about what should be the parameters to measure the ease of consumer interaction with the business? Well, that’s why you need to track the Customer Effort Score.
Now let us talk about the Customer Effort Score calculation and its importance.
What Is Customer Effort Score?
Customer effort score can be measured by the level of ease a customer had while interacting with your business. This is a regular customer survey consisting of different tasks that a customer can perform, like making a purchase, signing up for a trial, solving an issue with customer support, etc.
A CES is a metric to calculate user experience for a product or service they have used. Customers are required to rank their user experience on a scale from “Extremely Difficult” to “Very Easy.” This will help the company understand the efforts the consumer has invested while interacting with their product or service and will get to know whether that customer will return back or not.
This score can be calculated in different ways. You can ask the consumer whether the company made it easy for them to solve a problem or not. You can ask the consumer to rate the level of effort they had to put in to solve a problem. And you can ask them to answer questions like “How easy was it for you to solve your query today?”
The Corporate Executive Board originated this scoring system to improve companies’ customer support. This system was designed to effectively note the attitude of the consumer in customer service environments, mainly when there are problems to be addressed. As a result, you will get to know the level of effort that the customer had to spend while interacting with you. It is a prime factor in knowing their interest in shopping with you again in the future or not.
The higher the customer effort, the lower will be their loyalty towards the company. And it might seem that if the customer effort is smaller, it will increase their loyalty, but it is not necessary. In simple words, a customer will avoid shopping with your business and will give mean reviews if they face trouble while using your product or services. They will even restrict their family and friends from buying anything from you, which will be a significant loss instantly. On the other hand, if the needs of the consumer are taken care of, it still doesn’t guarantee that they will stay loyal to your business.
Most of you must be thrilled to know about the correct time and moment to send a CES survey to the customer.
Honestly, this is a very crucial thing to know about this survey because it matters a lot. Here are a few suggestions that will make a difference.
i) Follow up with the customer once you have had a successful sale. This is a great way to receive real-time feedback, which will help you improvise the buying experience.
ii) The other best time is right after the consumer had a good interaction with customer service. This will definitely help you find out how efficient and supportive your customer support team is. You can also get overall idea efficiency and know which things to focus on.
How can a company measure Customer Effort Score?
We have explained the use and principal of CES a lot. Now it’s time to help you understand the practicality of this surprising scoring survey.
Here are some of the ways that you can measure your company Customer Effort Score
i) Remember, in your school days, you got an exam score out of ten. Say you got nine out of ten in four subjects and eight out of ten in the other, so your average score will be 36.16 out of 50. This survey works on the same mechanism. Measure the CES results by generating an average rating of the entire study.
How is it done?
This method is generally used with a 1-10 Customer Effort Score calculation. Take the total sum of your CES scores and divide it with the total number of responses you received in your survey.
ii) Other metrics are using happy and unhappy or agree and disagree faces, which is a straightforward and interactive option to use. Here, you can calculate the score by subtracting the percentage of positive responses from the adverse reactions. In this case, neutral answers are generally ignored.
To explain to you better, let’s take an example. Let us say; 400 people took the survey. Out of 400, 250 people responded positively, and the remaining 150 scored negative. The percentage of 150 negative responses is 37.5% (150/400×100), which will be subtracted from 65% definite answers (250/400×100). In this case, your CES score will be 25%.
How can you tell whether your Customer Effort Score is good or not?
As simple as this sounds, this is a pretty tricky question to answer. The main reason is that there is no industry-wide standard set with which you can compare this score. Another reason is whether your CES is good or bad also depends on the questions you have written and the metrics you have used.
There can be confusion while calculating different methods. For example, you are using the Agree and Disagree scale. For “Strongly Disagree,” you have numbered it as one and for “Strongly Agree,” the number is seven, and the question you have asked is “Did the company make it easy for you to solve the problem?” In this case, you definitely want high CES.
In the second scenario of the CES survey, you have numbered 1 as Happy Face (less effort), and ten as Unhappy Face (More Effort) and the question you are asking is how much effort did you have to put in while interacting with our company. In this case, every business wants to score low.
What are the advantages of CES?
Since the time they have been in use, CES has made many positive changes in the business graph of the companies that are using it.
Here are a few of the most practical benefits of Customer Effort Score
i) One of the biggest pros of this survey is that it is distinct and actionable.
These surveys can quickly check the areas that need improvement so that customer experience can be smoother.
ii) Out of all other features, the most beneficial one is that CES is a strong predictor of future purchase behavior. According to research conducted by HBR, around 94% of consumers who had to put “low effort” during interaction with the company stated that they would buy from them again. And 88% of them were willing to pay more money for a high-end expensive product.
iii) As per the same research, CES will give a definite idea of whether your consumer will bring more consumers by word of mouth marketing. This means whether they will refer to your product or not.
iv) It plays a vital role in tracking how a customer feels and how good or bad they talk about your brand.
v) This survey not only helps you target the positive aspects, but it also helps you to counter the negative ones as well. 81% of customers who had to invest a lot of effort and time while their query was resolved strongly felt to speak negatively of the brand in question. So once a company has a slightest of the idea regarding such severe situations, it will be prepared beforehand.
A final thought on CES
Taking care of the customer’s needs is essential, but it is difficult to fulfill their demands every time. Still, there is no harm in tracking how their experience was while they were in touch with you; it will help the company for future customer handling. If you need further guidance on CES, CallHippo is just a call and message away to guide you on how to conduct this survey.