1. What is Customer Effort Score (CES) and why does it matter?
2. The best practices and tools for collecting and analyzing customer feedback
3. The key strategies and tactics for reducing customer effort and increasing satisfaction
4. The benefits and outcomes of having a low-effort customer experience
5. How some leading companies have leveraged CES to boost their performance and growth?
6. How to avoid and overcome the potential obstacles and drawbacks of using CES?
7. How CES will evolve and adapt to the changing customer expectations and needs?
8. A summary of the main points and a call to action for the readers
In today's competitive market, customer satisfaction is not enough to ensure loyalty and retention. Customers expect more than just a satisfactory product or service; they want a smooth and effortless experience that minimizes their frustration and maximizes their value. This is where customer Effort score (CES) comes in. CES is a metric that measures how easy or difficult it is for customers to interact with a company, such as making a purchase, resolving an issue, or getting support. By reducing the effort required from customers, companies can increase their satisfaction, loyalty, and advocacy, as well as reduce their churn and costs.
There are several reasons why CES matters for business success. Here are some of them:
- CES is a better predictor of loyalty than satisfaction. Research by the Corporate Executive Board (CEB) found that customers who reported low effort were 94% more likely to repurchase and 88% more likely to increase their spending than those who reported high effort. On the other hand, customers who reported high satisfaction were only 20% more likely to repurchase and 4% more likely to increase their spending than those who reported low satisfaction. This suggests that satisfaction is not enough to drive loyalty; customers also need to feel that their interactions are easy and frictionless.
- CES helps identify and eliminate pain points in the customer journey. By asking customers to rate their effort after each touchpoint, companies can pinpoint where they are creating unnecessary or excessive effort for their customers, such as complex processes, confusing instructions, or multiple transfers. By eliminating or reducing these pain points, companies can improve their customer experience and reduce their operational costs.
- CES fosters a culture of customer-centricity and continuous improvement. By measuring and monitoring CES, companies can align their teams and resources around the goal of reducing customer effort and enhancing customer value. This can foster a culture of customer-centricity, where employees are empowered and incentivized to identify and solve customer problems, as well as to seek feedback and learn from customer insights. This can also foster a culture of continuous improvement, where employees are encouraged and rewarded to innovate and experiment with new ways of delivering better customer outcomes.
To illustrate how CES works in practice, let us look at some examples of companies that have successfully leveraged CES for business success:
- Amazon is known for its relentless focus on customer convenience and ease of use. One of its most famous innovations is the one-click ordering feature, which allows customers to make a purchase with a single click, without having to enter their shipping and payment information every time. This feature reduces the effort and time required from customers, as well as the risk of cart abandonment. Amazon also uses CES to measure and improve its customer service, such as by offering call-back options, self-service portals, and proactive notifications.
- Southwest Airlines is known for its low fares and high customer satisfaction. One of its key strategies is to reduce the effort and hassle involved in air travel, such as by offering no change fees, no baggage fees, and open seating. These features reduce the stress and uncertainty that customers often face when flying, as well as the costs and complexity that the airline has to manage. Southwest also uses CES to measure and improve its customer service, such as by empowering its employees to go the extra mile for customers, and by providing fun and friendly interactions.
- Apple is known for its innovative and user-friendly products and services. One of its core principles is to reduce the cognitive load and friction that customers encounter when using technology, such as by offering intuitive interfaces, seamless integration, and personalized recommendations. These features reduce the effort and confusion that customers often experience when using technology, as well as the need for support and troubleshooting. Apple also uses CES to measure and improve its customer service, such as by offering genius bars, online chat, and video tutorials.
One of the most important aspects of using CES as a metric for customer satisfaction and loyalty is to measure it effectively and accurately. Measuring CES involves collecting and analyzing customer feedback on how easy or difficult it was for them to interact with a company, product, or service. There are several best practices and tools that can help with this process, such as:
- 1. Choosing the right question and scale. The standard CES question is "How much effort did you have to put forth to handle your request?" and the typical scale is a 7-point Likert scale ranging from 1 (very low effort) to 7 (very high effort). However, some variations of the question and scale may be more suitable for different contexts and goals. For example, some researchers suggest using a 5-point scale to reduce the ambiguity of the middle option, or using a word-based scale (such as "very easy" to "very difficult") to increase the clarity and simplicity of the question. Alternatively, some companies may prefer to ask about the ease of a specific action or outcome, such as "How easy was it to find what you were looking for?" or "How easy was it to complete your purchase?".
- 2. Collecting feedback at the right time and place. The timing and location of the CES survey can have a significant impact on the response rate and quality. Ideally, the survey should be sent or displayed shortly after the customer has completed the interaction or transaction that is being evaluated, such as after a phone call, a chat session, a website visit, or a purchase. This way, the customer's memory and impression of the experience are fresh and accurate. Moreover, the survey should be delivered through the same channel or medium that the customer used to interact with the company, such as email, SMS, web, or app. This way, the customer does not have to switch to a different platform or device to provide feedback, which may reduce their effort and increase their willingness to respond.
- 3. Analyzing feedback with the right metrics and methods. The raw CES data can be converted into meaningful and actionable insights by using various metrics and methods to analyze it. One of the most common metrics is the average CES score, which is calculated by summing up all the individual scores and dividing by the number of respondents. This metric provides a simple and overall indication of how easy or difficult customers perceive their interactions with the company. However, the average CES score may not capture the nuances and variations of the customer feedback, such as the distribution of the scores, the trends over time, the differences across segments, or the correlations with other variables. Therefore, it is advisable to use additional metrics and methods, such as frequency analysis, time series analysis, segmentation analysis, or regression analysis, to gain a deeper and richer understanding of the customer feedback and its implications for the business. For example, frequency analysis can reveal how many customers gave low, medium, or high effort scores, and how these proportions change over time or across segments. Time series analysis can show how the CES score fluctuates over time and identify any seasonal, cyclical, or irregular patterns. Segmentation analysis can compare the CES score across different groups of customers based on their characteristics, behaviors, or preferences, and identify any significant gaps or opportunities. Regression analysis can examine the relationship between the CES score and other variables, such as customer satisfaction, loyalty, retention, or revenue, and estimate the impact of reducing customer effort on these outcomes.
- 4. Using the right tools and platforms. To collect and analyze customer feedback effectively and efficiently, it is essential to use the right tools and platforms that can support the CES measurement process. There are many tools and platforms available in the market that can help with designing, distributing, and analyzing CES surveys, such as Qualtrics, SurveyMonkey, Medallia, Zendesk, or Delighted. These tools and platforms offer various features and functionalities, such as customizable templates, multiple channels, real-time feedback, dashboards, reports, analytics, and integrations. Depending on the needs and preferences of the company, some tools and platforms may be more suitable than others. Therefore, it is important to compare and evaluate the options and choose the one that best fits the company's goals, budget, and resources.
Customer effort score (CES) is a metric that measures how easy or difficult it is for customers to interact with a company, product, or service. A low CES indicates a smooth and effortless experience, while a high CES indicates a frustrating and cumbersome one. Reducing customer effort can have significant benefits for businesses, such as increasing customer loyalty, retention, satisfaction, and advocacy. In this section, we will explore some of the key strategies and tactics for reducing customer effort and increasing satisfaction.
Some of the ways to reduce customer effort and improve CES are:
- Simplify the customer journey. One of the main sources of customer effort is complexity. Customers may have to navigate through multiple channels, steps, or options to achieve their desired outcome. To reduce this complexity, businesses should map out the customer journey and identify the pain points, bottlenecks, and redundancies that create friction. Then, they should streamline the process and eliminate any unnecessary or confusing elements. For example, a company may offer a single sign-on (SSO) feature to allow customers to access multiple services with one login, or a chatbot to provide instant answers to common queries.
- empower the customer service agents. Another source of customer effort is inconsistency. customers may receive different or conflicting information from different agents, or have to repeat their issue multiple times to different people. To reduce this inconsistency, businesses should empower their customer service agents with the right tools, training, and authority to resolve customer issues quickly and effectively. For example, a company may use a CRM system to store and share customer data, or a knowledge base to provide consistent and accurate information.
- Anticipate the customer needs. A proactive approach to customer service can also reduce customer effort and increase satisfaction. Businesses should anticipate the customer needs and provide solutions before they become problems. For example, a company may send a reminder email before a subscription expires, or a follow-up survey after a purchase. By anticipating the customer needs, businesses can demonstrate that they care about the customer experience and prevent potential dissatisfaction.
As all entrepreneurs know, you live and die by your ability to prioritize. You must focus on the most important, mission-critical tasks each day and night, and then share, delegate, delay or skip the rest.
One of the main goals of any business is to create loyal customers who are satisfied with the products or services they receive. However, customer satisfaction is not only influenced by the quality of the product or service, but also by the ease of the interaction with the business. This is where the Customer Effort Score (CES) comes in handy. CES is a metric that measures how much effort a customer has to exert to get their issue resolved, request fulfilled, or question answered. By reducing the customer effort, businesses can improve customer loyalty, retention, and profitability. Here are some of the benefits and outcomes of having a low-effort customer experience:
- Reduced churn: Customers who have a low-effort experience are more likely to stay with the business and less likely to switch to a competitor. According to a study by the Corporate Executive Board (CEB), 96% of customers who reported high effort were more likely to be disloyal, compared to only 9% of those who reported low effort.
- Increased repurchase: Customers who have a low-effort experience are more likely to buy from the business again and spend more. The CEB study also found that customers who reported low effort were 94% more likely to repurchase, and 88% more likely to increase their spending, than those who reported high effort.
- Positive word-of-mouth: Customers who have a low-effort experience are more likely to recommend the business to others and spread positive word-of-mouth. The CEB study also revealed that customers who reported low effort were 81% more likely to say something positive about the business, and 72% more likely to refer a friend, than those who reported high effort.
To illustrate how a low-effort customer experience can drive business success, let us look at some examples of businesses that have implemented CES and achieved positive results:
- Amazon: Amazon is known for its customer-centric culture and its focus on reducing customer effort. Amazon uses CES to measure the effectiveness of its self-service options, such as its online help center, chatbots, and voice assistants. Amazon also uses CES to identify and eliminate pain points in its customer journey, such as shipping delays, product defects, or billing errors. By doing so, Amazon has been able to increase customer loyalty and retention, as well as generate more revenue from cross-selling and upselling.
- Zappos: Zappos is another example of a business that has used CES to create a low-effort customer experience. Zappos is famous for its exceptional customer service, which includes free shipping, free returns, and a 365-day return policy. Zappos also empowers its customer service representatives to go above and beyond to delight the customers, such as sending flowers, cards, or gifts, or even ordering pizza for them. Zappos uses CES to measure how easy it is for the customers to contact them and get their issues resolved. By doing so, Zappos has been able to build a loyal customer base and a strong brand reputation.
- Netflix: Netflix is a third example of a business that has used CES to create a low-effort customer experience. Netflix is a leader in the online streaming industry, which offers a wide range of movies and shows for a monthly subscription fee. Netflix uses CES to measure how easy it is for the customers to find and watch the content they want, as well as how easy it is to cancel or change their subscription. Netflix also uses CES to improve its recommendation system, which suggests content based on the customers' preferences and behavior. By doing so, Netflix has been able to increase customer satisfaction and engagement, as well as reduce churn and acquisition costs.
These examples show how having a low-effort customer experience can help businesses achieve various benefits and outcomes, such as reduced churn, increased repurchase, and positive word-of-mouth. By using CES as a metric, businesses can identify and eliminate the sources of customer effort, and create a seamless and effortless customer journey. This can lead to higher customer loyalty, retention, and profitability, and ultimately, drive business success.
One of the main benefits of using Customer Effort Score (CES) as a metric to measure customer satisfaction and loyalty is that it can help businesses identify and eliminate the sources of friction that customers encounter when interacting with their products or services. By reducing the effort required from customers, businesses can improve customer retention, increase cross-selling and upselling opportunities, and enhance their brand reputation. In this segment, we will look at how some leading companies have leveraged CES to boost their performance and growth.
- Amazon: Amazon is known for its relentless focus on customer experience and innovation. The e-commerce giant uses CES to evaluate the ease of use of its website, mobile app, and voice assistant. Amazon also uses CES to measure the effectiveness of its customer service channels, such as phone, email, and chat. By analyzing the CES data, Amazon can identify the pain points and friction points that customers face and take actions to resolve them. For example, Amazon introduced the one-click ordering feature to simplify the checkout process and reduce the effort required from customers. Amazon also offers free and fast shipping, easy returns and refunds, and personalized recommendations to enhance customer satisfaction and loyalty.
- Netflix: Netflix is the world's leading streaming service provider, with over 200 million subscribers worldwide. Netflix uses CES to measure how easy it is for customers to find and watch the content they want, as well as how satisfied they are with the quality and variety of the content. Netflix also uses CES to evaluate the performance and usability of its website, mobile app, and smart TV app. By collecting and analyzing the CES data, Netflix can optimize its content delivery and recommendation systems, as well as improve its user interface and design. For example, Netflix introduced the skip intro and skip recap features to reduce the effort required from customers to watch their favorite shows. Netflix also offers multiple profiles, downloadable content, and interactive content to cater to different customer preferences and needs.
- Apple: Apple is one of the most valuable and influential brands in the world, with a loyal fan base and a reputation for excellence and innovation. Apple uses CES to measure how easy it is for customers to use its products and services, such as the iPhone, iPad, Mac, Apple Watch, AirPods, Apple Music, Apple TV, and iCloud. Apple also uses CES to assess the quality and efficiency of its customer support channels, such as the Apple Store, Apple Care, and Genius Bar. By using the CES data, Apple can identify and eliminate the sources of friction that customers encounter and enhance their user experience and satisfaction. For example, Apple introduced the Face ID and Touch ID features to simplify the authentication process and reduce the effort required from customers. Apple also offers seamless integration, automatic updates, and family sharing to provide customers with a smooth and convenient experience.
While CES can be a powerful tool for measuring and improving customer loyalty, it is not without its challenges and limitations. In this section, we will explore some of the common pitfalls and challenges that businesses may face when using CES, and how to avoid and overcome them.
Some of the common pitfalls and challenges are:
- Choosing the wrong question or scale. The question and scale used to measure CES should be clear, relevant, and consistent. A vague or ambiguous question may confuse customers and lead to unreliable results. A scale that is too broad or too narrow may not capture the nuances of customer effort. For example, a scale of 1 to 10 may be too granular, while a scale of 1 to 3 may be too coarse. A scale of 1 to 5 or 1 to 7 is usually recommended, as it offers a balance between simplicity and sensitivity. Additionally, the question and scale should be aligned with the business goals and customer expectations. For example, if the goal is to reduce customer effort, the question should be framed as "How easy was it to ...?" rather than "How satisfied were you with ...?".
- Ignoring the context and drivers of customer effort. Customer effort is not a static or isolated metric. It is influenced by various factors, such as the type, channel, and stage of the customer interaction, the customer's needs and preferences, and the competitive landscape. Therefore, it is important to understand the context and drivers of customer effort, and not just the score. For example, a low CES score may indicate that the customer had a smooth and effortless experience, or that the customer had low expectations and did not care much about the outcome. A high CES score may indicate that the customer had a difficult and frustrating experience, or that the customer had high expectations and valued the outcome. To gain deeper insights into the reasons behind customer effort, businesses should collect qualitative feedback, such as open-ended comments, along with the quantitative score. They should also segment and analyze the data by different variables, such as customer segments, product categories, touchpoints, and time periods.
- Focusing on the average rather than the distribution. The average CES score can be misleading, as it may mask the variations and outliers in the data. A high average score may hide the fact that some customers had extremely high effort experiences, while a low average score may hide the fact that some customers had extremely low effort experiences. Both scenarios can have significant implications for customer loyalty and retention. Therefore, businesses should look beyond the average and examine the distribution of the CES scores, and identify the patterns and trends. For example, they should pay attention to the percentage of customers who gave the lowest and highest scores, and the changes over time. They should also investigate the root causes and impacts of the extreme cases, and take appropriate actions to address them.
- Treating CES as a standalone metric rather than a part of a holistic framework. CES is not a silver bullet that can solve all customer-related problems. It is one of the many metrics that can help businesses understand and improve customer loyalty, along with other metrics, such as customer satisfaction (CSAT), net promoter score (NPS), customer lifetime value (CLV), and customer retention rate (CRR). Therefore, businesses should not rely on CES alone, but use it in conjunction with other metrics, and establish a holistic framework for measuring and managing customer loyalty. They should also align CES with their overall business strategy and objectives, and ensure that it is integrated with their processes and systems. For example, they should link CES to key performance indicators (KPIs), incentives, and rewards, and embed CES into their customer feedback and service delivery platforms.
As the world becomes more digital and connected, customers expect more from the businesses they interact with. They want fast, easy, and personalized solutions that meet their needs and preferences. They also want to feel valued and respected by the brands they choose. This means that businesses need to constantly monitor and improve their customer effort score (CES), which measures how easy it is for customers to get things done with a company. CES is a powerful metric that can help businesses reduce friction, increase loyalty, and drive growth. But how can businesses keep up with the changing customer expectations and needs in the future? Here are some of the trends and opportunities that will shape the evolution and adaptation of CES in the coming years:
- Artificial intelligence (AI) and automation. AI and automation can help businesses streamline and simplify their processes, reduce errors, and provide faster and more accurate responses. They can also help businesses personalize their offerings and interactions, and anticipate and resolve customer issues before they escalate. For example, a chatbot can use natural language processing (NLP) and machine learning (ML) to understand customer queries and provide relevant answers or solutions. A voice assistant can use speech recognition and synthesis to converse with customers and guide them through tasks or transactions. An automated system can use data and analytics to send proactive notifications, reminders, or suggestions to customers based on their behavior or preferences.
- Omnichannel and seamless integration. Customers want to interact with businesses across multiple channels and devices, and switch between them seamlessly. They also want to have a consistent and coherent experience throughout their journey, regardless of the channel or device they use. This means that businesses need to integrate their systems and platforms, and ensure that they have a single source of truth for customer data and information. They also need to provide customers with easy and convenient ways to access and manage their accounts, preferences, and history across channels and devices. For example, a customer can start a conversation with a business on a social media platform, continue it on a mobile app, and complete it on a web browser, without losing any context or information. A customer can also use a QR code, a biometric scan, or a facial recognition to verify their identity and access their account on any channel or device.
- Customer feedback and co-creation. Customers want to have a voice and a say in the products and services they use. They also want to feel that their feedback and opinions are heard and valued by the businesses they interact with. This means that businesses need to solicit and collect customer feedback regularly and systematically, and use it to improve their offerings and interactions. They also need to involve and engage customers in the design and development of their products and services, and co-create value with them. For example, a business can use surveys, ratings, reviews, or social media to gather customer feedback and insights, and use them to identify and address customer pain points, needs, and expectations. A business can also use crowdsourcing, gamification, or contests to invite and incentivize customers to contribute their ideas, suggestions, or solutions for new or existing products and services.
In this article, we have explored the concept of Customer Effort Score (CES) and how it can be used to measure and reduce the friction that customers experience when interacting with a business. We have also discussed the benefits of using CES for improving customer loyalty, retention, and satisfaction, as well as the best practices for designing and implementing CES surveys. To conclude, we would like to offer some actionable tips for leveraging CES for business success:
- Use CES as a complement, not a substitute, for other customer feedback metrics. CES is a powerful tool for identifying and eliminating the pain points that customers face, but it does not capture the overall quality of the customer experience or the emotional aspects of customer loyalty. Therefore, it is important to use CES along with other metrics such as Net Promoter score (NPS) and Customer Satisfaction (CSAT) to get a holistic view of the customer journey and the drivers of customer behavior.
- Segment and analyze your CES data by different customer groups and touchpoints. Not all customers have the same expectations and preferences when it comes to ease of doing business. Similarly, not all touchpoints have the same impact on customer effort and satisfaction. By segmenting and analyzing your CES data by different customer groups (such as demographics, personas, segments, etc.) and touchpoints (such as channels, stages, processes, etc.), you can gain deeper insights into the specific needs and pain points of your customers and tailor your solutions accordingly.
- Act on your CES feedback and close the loop with your customers. Collecting CES data is only the first step in reducing customer friction. The next step is to act on the feedback and implement changes that will make your customers' lives easier and happier. Whether it is simplifying your processes, enhancing your self-service options, providing proactive support, or offering incentives and rewards, you need to show your customers that you value their feedback and that you are committed to improving their experience. Moreover, you need to close the loop with your customers and communicate the actions that you have taken based on their feedback. This will demonstrate your commitment to customer-centricity and build trust and loyalty with your customers.
By following these tips, you can leverage CES for business success and create a frictionless customer experience that will delight your customers and drive your growth. We hope you have found this article useful and informative. If you have any questions or comments, please feel free to contact us. Thank you for reading!
Read Other Blogs