By Corey Stout
As you many of you know by now, CCC believes that a low effort customer experience is the cornerstone of customer loyalty.
The strongest predictor of loyalty is a low effort customer experience; if customers are forced to put forth high effort, they’re 96% more likely to be disloyal, whereas only 9% of customers with low effort are more disloyal.
In following our own low-effort customer experience advice, CCC created in 2008 the Customer Effort Score, a customer experience metric that accounts for the ease of customer interaction and resolution during a request, so that you can easily track effort.
We’ll discuss with a panel of members how to implement, use, and demonstrate the results of the Customer Effort Score.
Here’s a preview of the topics we’ll discuss:
Implementation of the CES:
CCC recommends that companies ask the question, “How much effort did you personally put forth to handle your request?” We advise this particular question – the original customer effort score – because it is validated by 55,000 customers and we have benchmarks that companies can use to evaluate their results.
That said, we’ve certainly seen companies experiment with the wording of the question and the recommended 5-point scale to ensure consistency with other corporate survey questions. In one example, B2B companies occasionally express concern that some customers are confused by the CES wording since certain service-related tasks are part of their reps’ jobs.
Use of the CES:
Regardless of phrase/scale used, many companies find CES to be an incredibly informative and helpful metric. It has helped to:
- Demonstrate project success – Decreasing effort scores highlight the effectiveness and success of certain changes.
- Influence rep behaviors – As reps understand the importance of effort, they focus more on experience engineering.
- Detect process fixes – Identifying specific call types with unusually high effort scores can indicate potential areas for process improvements.
Demonstrate the Results of the CES:
There are two primary ways that companies tie CES results to financial returns:
- Calculate disloyalty risk among high-effort customers to show how reducing the number of high-effort customers can improve repurchase. We find that customers who exert “high” effort (4 or 5 on the CES scale) are 61% less likely to repurchase and 23% less likely to increase spend with an organization – as compared to the average customer. Use existing data regarding the percentage of customers who renew contracts annually or your general customer churn rate to get an average repurchase rate, and then figure out the expected loss in repurchase from high effort customers specifically
- Tie changes in your actual CES metric (e.g., one-point or one-tenth of a point change) to loyalty outcomes. With any one-point increase in CES (a 20% increase in your score), you could see a 14% decrease in intent to repurchase, for example. You can tie this data to any statistics you have on customers’ repurchase rate to illustrate the monetary returns of CES.
Looking forward to catching you all on the virtual side to hear more from your peers on their use of the Customer Effort Score!
What would YOU like to know about the Customer Effort Score? We’ll try to get your questions into the queue during the Webinar.