Whereas 10-20 years ago the focus of advertising was on the product or service, today the focus is on the consumer. The ultimate goal of marketing is still to make a profit, but the message is not about the product's features, but about building engagement, about the consumer's recognition of the benefits of buying the product. This needs to be wrapped up in a way that ensures that the customer experience is impeccable throughout the customer journey. What is customer experience and what are the customer experience KPIs? We've explored this in this blog post!
What does customer experience mean?
Customer experience is an umbrella term that covers everything a customer experiences when visiting an online store. From the moment they arrive at the online shop via a Facebook ad, for example, to the moment they add the product to their shopping cart and then pay for it.
There are basically three main components to the customer experience: service experience, product experience and brand experience. Let's get to know them better!
Service-related experience
This includes all the experiences that the customer has had during the communication with the company. For example, what he encounters in the different communication channels, customer service, emails, chatbot.
Experience with the product
The product experience is the experience you have when you use it. How is the quality? How usable is it? How effective is it? In other words, everything about the product.
Brand experience
The brand experience is a much broader experience than the product experience. The focus is not on a specific product, but on the brand, the feelings associated with it, the marketing, the design, the message.
The companies that can really succeed are those that can put the customer at the centre of everything, and make their satisfaction the key. As a result, loyalty is stronger, customers are more likely to return and share their good experiences with friends and acquaintances.
For an e-commerce company, the customer experience consists of many different components. This includes, for example, the ease of navigating the site, the product categories, the ease of payment, fast and accurate delivery, accessible and responsive customer service, and so on.
Customer experience may seem rather abstract, but fortunately there are customer experience KPIs that can be used to quantify results. Here are the most important of them!
What customer experience KPIs exist?
Let's take a look at some of the performance indicators to monitor if we want to know if we are on the right track!
Churn
Attracting customers is an important issue for sales, but the churn rate is also important. In other words, how many people leave before the target event or, for example, cancel their service or subscription. The lower the rate, the more satisfied customers are.
Net Promoter Score
The Net Promoter Score, or NPS, is a numerical rating given by customers on how satisfied they were, how much they would recommend your online store, product or service to others. If it's low, it's worth making a change, because in the long run it will lead to a decrease in revenue.
Customer satisfaction
The Customer Satisfaction Score shows how satisfied customers are. It is one of the simplest ways to measure it. For example, you can ask them how satisfied they were with their purchase and enter the corresponding value on a scale. This is expressed as a percentage. The calculation is simple: total responses/positive response and the result multiplied by 100. For example, if the webshop received 30 reviews, 20 of which were positive, the score would be 66.7%.
Customer acquisition rate
The Customer Acquisition Rate (CRA) is a measure of the proportion of new customers a company is able to acquire over a given period of time. It is an important indicator to know how effective your marketing and sales activities are.
Conversion rate
The conversion rate is an indicator of the number of prospects that become customers. The better the user experience, the more likely the visitor will eventually make a purchase, i.e. the higher the conversion rate.
Cart abandonment rate
Cart abandonment is difficult to avoid, with surveys showing that it averages around 70%. It's worth exploring what's behind this, for example if too many open questions are holding up a purchase, it may be worth reworking the information materials, sections or adding a chatbot.
Marketing campaign effectiveness
The effectiveness of a marketing campaign is best measured by ROI, i.e. the return on investment. The effectiveness of the marketing campaign and the customer experience are linked, and the effectiveness of the marketing activity improves the customer experience.
Direct sales
Direct traffic refers to traffic that comes directly to the website of the online store. This is significantly related to brand awareness, as the more people are familiar with the site and the more satisfied with it, the more people will land directly on the site.
Page views per visit
Visitors who have found useful and relevant content on the site will spend more time, click on more sub-pages, wander around, explore. The aim should be to keep visitors' attention and to direct them to newer and newer pages. So the time on page should be increased, as should the number of page views per visit.
What role does Inhabitad play?
Inhabitad plays a major role in enhancing the customer experience. As a retail media solution, it offers brands the opportunity to reach visitors at the most open stage of the customer funnel, at the point of purchase. The overall experience can be enhanced by finding products that are useful and relevant to them.
Another front where Inhabitad can support the customer experience in retail media is analytics. It provides rich and in-depth analytics and data to brands, enabling them to personalise their messages even more.
Click to discover Inhabitad's solutions!
