Evaluating Customer Contentment: Essential Metrics Every Product Manager Must Know
From CSAT to FCR: Decoding the Numbers that Speak of Customer Satisfaction
Learning how to gauge the pulse of customer satisfaction is one of the most important things a competent Product Manager should know. And it isn't just about crafting products that are technologically sound or innovative; it's about ensuring these products resonate positively with users.
The pulse of your customer base can be felt using various metrics that not only offer insights into what's working but also shine a light on areas requiring improvement.
This article delves into six essential customer satisfaction product metrics, providing an in-depth look into their significance and how they can shape the roadmap for product managers.
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Common Customer Satisfaction Product Metrics
1. Customer Satisfaction Score (CSAT) - this metric refers to your customers’ general satisfaction of your product. CSAT is primarily collected through a survey asking how satisfied customers are in relation to several predefined benchmarks.
Collecting CSAT allows you to learn your customers’ unaddressed pain points and drive improvements. Low CSAT can be caused by poor product quality, user experience, or customer support - among many others.
Formula: CSAT = All users who rated 4 or 5 / all users who answered
2. Net Promoter Score (NPS) - this metric refers to how likely a customer will recommend your product, and in turn, measure customer sentiment. A high number of NPS means a higher number of satisfied customers that are loyal to your brand. In case you have low NPS, there’s a pressing need to understand why your product is rated negatively. Work backwards and figure out which factor is causing the negative sentiment.
Formula: NPS = % Promoters - % Detractors
3. Customer Effort Score (CES) - this metric refers to a product or service’s ease of use. It measures how much effort is expended from its general use. As product managers, we generally want to pull this number as low as possible. A high CES means that there’s a lot of architectural or programmatic friction that can potentially harm your customer experience. In general, people want faster load times or intuitive user interface because they save time. And time is a very important resource.
Formula: CES = (Addition of all customer effort scores ÷ Total number of respondents) X 100
4. Abandonment Rate (AR) - this metric refers to the % of users who terminated an action or request before it was completed. This is often used in e-commerce sites and more popularly known as Cart Abandonment Rate (CAR). Knowing precisely where and when a user terminates an action or request can give you some insights on the reasons why.
If users abandoned an action at the checkout page, then perhaps it can be attributed to hidden / delivery fees or shipping duration. On another instance, if abandonment happens on a web page with an embedded pop-up collecting information, then perhaps the reason may be due to the unpleasant experience of disrupting the user experience or the data prompted to be collected were too sensitive (location/gender/etc.).
Formula: AR = (Number of abandoned actions ÷ Total number of actions) X 100
5. First Response Time (FRT) - this metric refers to the duration of time it takes for the customer support team to attend to a ticket. It’s important to note this to know whether the current support system in place is affecting your organization’s bottom line - both in acquisition and retention.
Formula: FRT = (Total FRTs during that particular hour ÷Total number of resolved tickets) X 100
6. First Contact Resolution (FCR) - this metric refers to the % of customer tickets resolved on the first attempt. This lets you measure whether your customer support system is able and equipped to attend to any issues arising from your products’ use or inquiries from potential customers.
Formula: FCR = Total number of one-touch tickets ÷ Total number of tickets received
Wrapping up our Learnings
A product's success is inextricably linked to its users' satisfaction levels. Metrics like CSAT, NPS, CES, and the others mentioned offer a transparent window into this sentiment. These numbers tell stories - of delightful user experiences, of pain points needing attention, and of areas where the product truly shines.
As product managers, it's crucial to understand and act upon these metrics. By ensuring that every product iteration addresses these data points, one can ensure not just a successful product, but a loyal and satisfied user base.
Remember, in the world of product management, a happy customer is the best business strategy.
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