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10 Essential customer experience KPIs & metrics [2024]

Updated: February 19, 2024
10 Essential customer experience KPIs & metrics [2024]
10 Essential customer experience KPIs & metrics [2024]

As 2023 nears its close, there’s one undeniable truth: businesses are no longer just selling products or services but curating experiences. Nearly 93% of companies saw a rise in customer retention rate after shifting their focus to enhanced customer experience. This article will guide you through the pivotal customer experience metrics and KPIs that will shape the concluding months of 2023 and define future customer experience strategies.

Picture this: you’re browsing an online bookstore. It’s not just the vast collection that keeps you hooked, but the personalized recommendations, easy navigation, and the thrill of discovering a hidden gem – the entire digital journey. That’s what brands aim for – a seamless, memorable experience that resonates on a personal level.

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Companies like Netflix or Spotify aren’t solely successful because of their product range but because they’ve tuned into the finer details of their user’s journey. As 2023 draws to a close and we stand on the brink of a fresh year filled with new challenges and opportunities, delving deep into customer experience KPIs and metrics is necessary. These metrics represent the pulse of your clientele, their joys, and their pain points. Let’s explore what makes customers click, return, and, most importantly, stay loyal.

Introduction to customer experience

Think of the last time you walked into a boutique hotel, where every corner echoed your aesthetic and every service seemed tailor-made for you. That’s customer experience in a nutshell. It’s the sum of all emotions, perceptions, and reactions a customer feels about a brand from the first interaction to post-purchase engagements. It’s not just about a product’s functionality or a service’s efficiency; it’s about the personal connection and the story that unfolds between a brand and its customer. In an era of endless choices, crafting a memorable customer experience differentiates successful brands from the fleeting ones.

What are customer experience KPIs?

Now that you understand the importance of customer experience, it’s vital to know the tools that help quantify this experience. That is what Customer Experience KPIs are. These Key Performance Indicators are the compass for businesses, guiding them towards customer-centricity. They’re not just numbers but stories—stories of interactions, expectations, and emotions.

Customer experience (CX) KPIs to track

At the heart of every successful business is its ability to listen, understand, and act upon the feedback of its customers. To do this systematically, there are tried-and-true metrics that companies globally rely upon. Let’s explore these critical KPIs, highlighting their essence and calculation.

KPI #1. Net promoter score (NPS)

Net Promoter Score is an essential gauge of customer loyalty. Born from a single question – “On a scale of 0-10, how likely are you to recommend our product/service to others?” – NPS offers businesses a clear view into the overall customer sentiment. In an era where word-of-mouth marketing carries immense weight, this metric underscores the power of customer advocacy. An elevated NPS often signifies high customer satisfaction, while a lower score can indicate discontent.


Net promoter score = % of promoters – % of detactors

KPI #2. Customer satisfaction score (CSAT)

CSat directly measures immediate satisfaction levels after an interaction or purchase. It’s often a simple query: “How satisfied were you with our product/service?” Answered on a scale (e.g., 1 to 5), CSAT provides rapid feedback. Businesses must measure CSAT regularly as it gives insights into how specific touchpoints or processes resonate with customers.


CSat score = (No. of positive responses / No. of total responses) * 100

KPI #3. Customer effort score (CES)

CES evaluates the ease with which customers interact with a brand or utilize a service. This metric captures (on a scale) the essence of today’s consumer desire for effortless experiences. A high CES indicates that customers can achieve their goals seamlessly, leading to increased loyalty and reduced churn.


CES % = (No. of respondents who rated high / No. of total respondents) * 100

KPI #4. First contact resolution (FCR)

FCR assesses the efficiency of a support team by determining how often customer queries or problems are resolved in the first interaction. A high FCR typically leads to increased customer satisfaction, as customers value swift resolutions without having to revisit issues multiple times.

FCR % = (Total issues resolved on first attempt / Total issues resolved) * 100

KPI #5. Average response time

In an age of instant gratification, how quickly businesses respond to customer inquiries can make or break customer relations. Average response time measures this speed, and a lower response time can boost customer satisfaction and confidence in a brand.

ART = Total time taken to respond / Total number of responses

KPI #6. Customer retention rate (CRR)

The customer retention rate is pivotal for businesses since retaining existing customers is often more cost-effective than acquiring new ones. CRR gauges the ability of a company to keep its customers over a given timeframe. A high retention rate signals satisfied customers, strong product value, and effective customer engagement.

CRR = ((E-N)/S) * 100
E = number of customers at the end of the period

N = number of new customers acquired during the period

S = number of customers at the start of the period

KPI #7. Customer lifetime value (CLV)

Customer lifetime value (CLV) estimates the total value a customer brings to the business over the entirety of their relationship. Recognizing the long-term value of a customer helps businesses make informed decisions about acquisition spending and design retention strategies.

CLV = (Average purchase value * Purchase frequency) * Average customer lifespan

KPI #8. Customer churn rate (CCR)

Churn Rate evaluates the percentage of customers who cease using a product or service during a given period. A high churn rate can be alarming, signifying dissatisfaction, competitive pressures, or unmet customer needs.

Customer churn rate = (No. of churned customers during the period / Total number of customers at the start of the period) * 100

KPI #9. Customer complaint resolution time (CCRT)

The customer complaint resolution time refers to the average time taken by a business to address and resolve complaints or issues raised by customers. This metric is crucial because it reflects the company’s customer service efficiency and commitment to customer satisfaction. The quicker a complaint is resolved, the more likely the customer will retain trust in the brand, reducing churn and promoting loyalty.

CCRT = Total time taken to resolve complaints / Total complaints resolved

KPI #10. Upsell/cross-sell rate

The upsell/cross-sell Rate measures the effectiveness of a business in selling complementary products (cross-sell) or higher-value products/services (upsell) to existing customers. This metric is essential because it reflects a company’s ability to maximize the revenue potential from its current customer base. Upselling and cross-selling increase transaction value and improve customer satisfaction if the recommended products or services genuinely add value for the customer.

Upsell/cross-sell rate = Number of upsell/cross-sell transactions / Total number of transactions

Measuring KPIs for customer experience

Effective customer experience management isn’t just about monitoring metrics. It’s about understanding them, interpreting their implications, and taking informed actions that drive real-world results. As businesses grapple with the evolving demands of their customer base, a comprehensive strategy for measuring KPIs is imperative. Here’s a structured approach to ensure your customer experience metrics are insightful and actionable.

1. Determining customer loyalty rate

Customer loyalty is a critical indicator of your business’s long-term health. While metrics like NPS provide a snapshot of customer advocacy, the real insights lie in understanding recurring patronage, referrals, and consistent engagement. That is where partners like can elevate your understanding. By leveraging advanced data analytics and sentiment analysis, helps you discern the reasons behind consumer behavior, enabling you to nurture and strengthen these vital relationships more effectively.

2. Identifying areas of improvement

Every business, no matter how successful, has room for growth and refinement. In customer experience, constructive feedback is invaluable. It’s not just about identifying shortcomings but pinpointing opportunities to enhance and innovate. With, you can streamline feedback collection and analysis. The platform highlights areas needing attention and provides actionable insights, empowering businesses to address gaps and enhance their offerings proactively.

Keeping performance aligned with objectives

A company’s broader objectives should always inform its customer experience strategy. But in the rush of daily operations, it’s easy to lose sight of these overarching goals. Periodic assessments ensure your customer experience metrics align with your business’s mission and vision.’s dashboard offers a consolidated view of your performance metrics, facilitating easier decision-making and strategy alignment. It ensures that every customer interaction meets and furthers your business objectives.

Incorporating platforms like into your strategy offers a blend of data-driven insights and actionable recommendations. The goal remains clear as we progress: deliver outstanding customer experiences that drive loyalty, growth, and sustained success.

Conclusion: Redefining customer experience

The year 2023 has underscored the indispensability of fine-tuning our approach to connect, engage, and delight our customers. A brand’s success, now more than ever, is anchored in its ability to discern subtle shifts in customer sentiment, anticipate needs, and innovate dynamically to meet and exceed those expectations.

However, while metrics and KPIs provide a roadmap to understanding these shifts, they are merely the starting point. Beyond numbers and percentages, it’s about the narratives we weave and the relationships we nurture. It’s about establishing trust, cultivating loyalty, and constantly evolving to stay relevant in our customers’ stories.

Now imagine being equipped with a tool that gathers and analyzes these intricate metrics, offers real-time insights, enables prompt action, and ensures your strategies consistently align with your overarching business objectives. That’s precisely where enters the narrative, bridging the gap between data-driven decisions and human-centric experiences. With’s generative AI-powered platform, ensure every customer interaction is an opportunity to excel, innovate, and forge lasting bonds. Elevate your customer experience, drive loyalty, and ensure sustained growth.

Enhance Your Business With’s Generative AI-powered platform. Book a Demo.

Frequently asked questions (FAQs)

What are Customer Experience KPIs, and why are they important?

Customer Experience KPIs (Key Performance Indicators) quantify the interactions, emotions, and perceptions a customer has with a brand throughout their journey. They’re essential as they offer a data-driven lens to gauge customer satisfaction, loyalty, and overall sentiment. By monitoring these KPIs, businesses can tailor their strategies to resonate deeply with their clientele, ensuring transactional success and long-lasting brand loyalty.

What are CX principles?

CX principles are foundational guidelines that steer a brand’s approach to delivering exceptional customer experiences. They revolve around understanding customer needs, fostering genuine relationships, ensuring seamless interactions, and constantly evolving based on feedback. By embracing these principles, companies can create memorable experiences that keep customers returning, ensuring sustained growth and loyalty.

How do you determine the right Customer Experience KPIs for your business?

Determining the right Customer Experience KPIs involves deeply understanding your business objectives and customer expectations. Start by mapping out your customer’s journey and identifying crucial touchpoints. Pair this with feedback collection, both quantitative and qualitative. Platforms like can offer insights by analyzing customer interactions, ensuring you choose KPIs that genuinely reflect your customer’s experiences and align with your business goals.

What are the key differences between NPS, CSAT, and CES as Customer Experience KPIs?

NPS (Net Promoter Score) gauges customer loyalty by measuring their likelihood to recommend your product or service. CSAT (Customer Satisfaction Score) directly assesses satisfaction levels post-interaction. CES (Customer Effort Score) evaluates the ease of customer interactions with your brand. While NPS focuses on advocacy, CSAT centers on immediate satisfaction, and CES underscores the simplicity of the customer’s journey.

What are the KPIs for improving customer experience?

To improve customer experience, focus on KPIs like NPS for loyalty insights, CSAT for direct feedback, CES to ensure effortless interactions and First Contact Resolution for efficient support. Monitoring metrics like Average Response Time can help in quick query resolutions, while Customer Churn Rate offers insights into potential dissatisfaction areas. Leveraging platforms like ensures you stay attuned to these metrics and iterate based on real-time data.

How do you measure customer loyalty and improve?

Measuring customer loyalty often involves metrics like NPS, Customer Retention Rate, and Customer Lifetime Value. To improve loyalty, it’s imperative to understand the factors driving these numbers. Collect feedback, address pain points, personalize interactions, and regularly engage with customers. Platforms like can provide invaluable data-driven insights, helping businesses craft strategies that resonate deeply and foster loyalty.

What are the 3 Cs of customer experience?

The three Cs of customer experience are Consistency, Convenience, and Customization. They epitomize the essence of building trust through uniform interactions, ensuring a frictionless customer journey, and tailoring experiences to individual preferences, respectively. By mastering these three Cs, brands can create lasting connections that transcend mere transactions.

What are the 5 Es of customer experience?

The 5 Es of customer experience chart a customer’s journey, capturing stages of Entice, Enter, Engage, Exit, and Extend. They map the phases from attracting potential customers, welcoming them into the brand ecosystem, fostering active interactions, ensuring a graceful departure post-purchase, and extending the relationship through follow-ups and referrals.

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