This article provides a detailed response to: What metrics should companies prioritize to measure the success of their VoC programs beyond NPS and customer retention rates? For a comprehensive understanding of VoC, we also include relevant case studies for further reading and links to VoC best practice resources.
TLDR Companies should prioritize Customer Effort Score (CES), Customer Satisfaction (CSAT), and analyze Customer Churn Rate and reasons for churn to gain a nuanced understanding of customer experiences, improve satisfaction, and drive sustainable growth.
TABLE OF CONTENTS
Overview Customer Effort Score (CES) Customer Satisfaction (CSAT) Customer Churn Rate and Reasons for Churn Best Practices in VoC VoC Case Studies Related Questions
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Before we begin, let's review some important management concepts, as they relate to this question.
Voice of the Customer (VoC) programs are essential for understanding and meeting customer expectations. While Net Promoter Score (NPS) and customer retention rates are popular metrics, they only provide a partial view of customer satisfaction and loyalty. To gain a comprehensive understanding, companies should consider additional metrics that offer deeper insights into customer experiences, preferences, and behaviors. These metrics can help businesses refine their customer strategies, improve product and service offerings, and ultimately drive growth.
Customer Effort Score (CES)
The Customer Effort Score (CES) measures the ease with which customers can interact with a company, whether it's buying a product, finding information, or getting customer support. A low effort experience is closely linked to high customer satisfaction and loyalty. According to Gartner, reducing customer effort can lead to a 94% increase in repurchase rates and a 88% increase in spending. CES can be measured through post-interaction surveys by asking customers to rate the ease of their experience on a scale. This metric is actionable and specific, allowing companies to identify friction points in the customer journey and streamline processes for a better customer experience.
For example, a telecommunications company might analyze CES scores related to bill payment processes. If customers report high effort scores, the company could simplify the payment interface or offer more payment options to enhance the customer experience. By focusing on reducing customer effort, companies can not only improve satisfaction but also drive operational excellence by identifying and eliminating inefficiencies.
Moreover, tracking CES over time can help companies understand the impact of changes in their processes or offerings on customer perceptions of effort, enabling continuous improvement and innovation in customer experience management.
Customer Satisfaction (CSAT)
Customer Satisfaction (CSAT) scores provide immediate feedback on how customers feel about a specific product, service, or interaction. This metric is typically measured using a short survey with a question such as "How satisfied were you with your experience?" Responses are often on a scale, allowing companies to gauge satisfaction levels quickly. Unlike NPS, which asks about a customer's likelihood to recommend a company and is more reflective of overall loyalty, CSAT offers a snapshot of satisfaction at specific touchpoints. This specificity makes CSAT a valuable tool for identifying areas of the customer experience that need improvement.
Accenture's research highlights that customers who are highly satisfied are more likely to remain loyal and make additional purchases. By closely monitoring CSAT scores, companies can identify trends and patterns in customer satisfaction, enabling them to make targeted improvements. For instance, if a retail company notices a drop in CSAT scores related to online shopping, it might investigate issues such as website navigation, product availability, or checkout process efficiency.
Implementing changes based on CSAT feedback can lead to significant improvements in customer satisfaction and business outcomes. Real-world examples include companies that have redesigned their websites for better usability or introduced new product features in response to customer feedback, resulting in higher CSAT scores and increased sales.
Customer Churn Rate and Reasons for Churn
While customer retention rates offer insight into loyalty, analyzing customer churn rate and the reasons behind churn can provide critical feedback for VoC programs. Churn rate measures the percentage of customers who stop doing business with a company over a specific period. More importantly, understanding why customers leave can highlight specific issues with products, services, or customer experiences. This metric requires companies to collect exit feedback through surveys or interviews, which can reveal actionable insights for reducing churn.
For example, a software company might discover through churn analysis that customers are leaving due to a lack of certain features or poor customer support. This insight allows the company to prioritize product development and customer service improvements. According to Bain & Company, a 5% reduction in customer churn can increase profits by 25% to 95%, underscoring the importance of addressing the root causes of churn.
Furthermore, analyzing churn can help companies segment their customer base and identify at-risk customers before they leave. Predictive analytics can be used to analyze customer behavior and feedback, enabling companies to proactively engage with these customers through personalized offers or targeted support, potentially reversing the decision to churn.
In conclusion, while NPS and customer retention rates are valuable metrics, expanding the focus to include CES, CSAT, and churn analysis can provide a more nuanced and actionable understanding of customer experiences. By leveraging these metrics, companies can identify specific areas for improvement, enhance customer satisfaction and loyalty, and drive sustainable business growth.
Best Practices in VoC
Here are best practices relevant to VoC from the Flevy Marketplace. View all our VoC materials here.
Explore all of our best practices in: VoC
VoC Case Studies
For a practical understanding of VoC, take a look at these case studies.
Customer Experience Transformation in Telecom
Scenario: The organization is a mid-sized telecom provider facing significant churn rates and customer dissatisfaction.
Customer Insight Strategy for Agritech Firm in Precision Agriculture
Scenario: The organization is a leader in precision agriculture technology, providing innovative solutions to enhance crop yield and farm efficiency.
Customer Experience Enhancement in Esports
Scenario: The organization is an established esports company facing challenges in understanding and integrating its viewers' feedback into actionable strategies.
Consumer Insights Enhancement in Agriculture Sector
Scenario: The organization is a mid-size agricultural equipment provider facing challenges in understanding and integrating customer feedback into its product development and marketing strategies.
Customer Insight Strategy for Biotech Firm in Precision Medicine
Scenario: The organization is a biotech company specializing in precision medicine, grappling with the challenge of integrating and acting upon complex feedback from a diverse set of stakeholders, including patients, healthcare providers, and regulatory bodies.
VoC Enhancement for Specialized Retail Chain
Scenario: The organization is a high-end retailer specializing in outdoor and adventure gear, with a significant online presence as well as brick-and-mortar stores.
Explore all Flevy Management Case Studies
Related Questions
Here are our additional questions you may be interested in.
Strategy & Operations, Digital Transformation, Management Consulting
This Q&A article was reviewed by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.
It is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:
Source: "What metrics should companies prioritize to measure the success of their VoC programs beyond NPS and customer retention rates?," Flevy Management Insights, David Tang, 2026
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