5 Reasons Why Measuring Customer Experience is Crucial

Last Updated: February 2024

Customer experience today is a must-win game that decides the fate of every e-commerce brand and permits almost zero exceptions. Business owners spend a lot of time analyzing CSAT, NPS, or CES data in an effort to gauge the customer experience of their brands. This is because every industry is likely to witness a new wave of competition in 2021 and beyond. Since the start of the pandemic, the market has witnessed explosive growth and everyone from brick and mortar retail stores to pharmacies is venturing into e-commerce.

While you would have the ‘home field advantage’ as an existing e-commerce store, you will need to play to your strengths in order to survive. The truth is that cutting prices is no longer enough to woo customers. As margins become thinner and customers demand greater convenience, e-commerce brands need to rethink their value proposition.

In other words, they need to learn what customers really want by constantly monitoring their experience. Why? This will help them interpret and adapt to changing customer behavior in a better way.

For example, mapping the customer journey and identifying touchpoints that drive customer satisfaction can provide real-time feedback to your brand.

This data can then be utilized to take specific actions like optimizing the product pages on your website, providing multiple payment options, and making navigation easier. This leads to more page views and higher conversion rates.

Similarly, customer experience data can also be used to upsell related products through targeted recommendations, especially on the order confirmation page.

A data-driven approach to measuring customer experience can thus help you improve ROI while keeping operating costs under control. In the post-pandemic environment, it can make all the difference between success and failure.

How Measuring Customer Experience Can Help Your Business

Depending on your business goals, measuring customer experience can help you achieve the following outcomes:

Increase sales:

According to Yotpo, 14.77% of all online shoppers are repeat customers. Given the convenience of buying online, this figure is quite low, and here lies the opportunity. For instance, research shows that returns and exchanges are a key reason why the majority of customers do not return to buy more.

To be precise, returns represent 30% of all online purchases. However, the lack of an easy returns policy can impact 59% of potential revenue from repeat customers. Measuring customer experience can help you match their expectations and make effective cost-benefit trade-offs with an eye on the bottom line.

Cart abandonments are another key challenge, affecting e-commerce sales around the world. Research has identified several reasons for it including extra shipping costs, negative reviews, complicated checkout, lack of secure payment options, slow site speeds, etc. By studying customer behavior such as browsing history, past purchases, customer service interaction data, etc., you can proactively streamline your online experience and boost sales by bundling different products or offering free gifts with the minimum order value.

Set the right KPIs

Small e-commerce stores often struggle to get their business priorities right especially when they are just starting out. In such situations, it is always best to adopt a crawl-walk-run approach. The problem is there are hundreds of metrics out there and everyone can seem important at a glance.

Here is a simple hack to overcome this problem – think about the customer experience you want to create and work your way backward! If you are just starting up, you might want to prioritize metrics like session duration, average order value, and cart abandonment rate.

Secondly, KPIs like conversion rate is also influenced by many smaller metrics such as average session duration and page views. They are all interconnected in terms of the final outcome. Measuring customer data can help you get a balanced perspective on what actions to take to address declining traffic or online engagement. What’s more, you will be able to identify the best marketing channels to achieve your conversion goals.

Boost retention

Customer experience and retention have a cause-effect relationship. In fact, the customer experience creates the reason why customers would want to keep buying from you.

As far as brands go, customers are spoilt for choice. According to PWC, 1 in 3 customers will switch to another brand after a single bad experience. From the design of your homepage to ease of navigation, there are many elements that matter in terms of customer experience.

There is another key element that is just as important: customer service. Metrics like average handle time, first contact resolution, response time, and CSAT score play a key role in determining the overall customer experience.

Boost average order size

Monitoring customer journeys is the first step to identifying customers who buy more from your store, more often than others. Segmenting them further based on purchase history and demographics can help you create personalized experiences tailored to different customer categories.

In turn, this can translate into increased customer lifetime value and reduced marketing costs.

Drive referrals

One of the most powerful ways you can leverage customer experience data is to promote your referral program. Often, referral rewards are skewed towards new customers while the existing customers only get a token reward. While this may make sense from the cost perspective, there can be consequences, for example, your customers may be less enthusiastic towards sharing your referral link with others in the future.

By understanding the customer experience through surveys, you can allocate rewards in a fair manner across both existing and new customers, driving engagement and conversion.

Last Words

To turn a customer into a brand advocate, it is important that you ask for feedback constantly. After all, creating a positive customer experience is an ongoing process that requires constant communication with customers.

So, an empowered customer service team is indispensable to the long-term success of your business. In the era of remote working, old processes and workflows may be becoming redundant. An experienced customer support provider like Helplama can help you overhaul and upgrade your in-house processes and plug any gaps in coverage.

We have extensive experience working with a wide range of companies, small and large. Our plans are flexible and cost-effective. We are pleasant to work with- no long-term contracts or minimum volumes. What’s more, our Zero-Risk Guarantee has you covered in case you are not satisfied with our service for any reason.

And, you can try Saufter – the customer service software that can help you automate and scale your customer support.

Contact us today for more information!

Customer Service

Decision Maker App

Automate Support


Automate 100% of your common procedures

Group 6154
Group 6154
Order delay monitoring
Group 6154
Subscription modifications
Group 6154
Missing orders
Group 6154
Subscription cancellations
Group 6154
Much more
Claim Your 6 Months Of FREE Credits Now


Claim Your 6 months of FREE Credits Now!

Get the code. Use anytime in the next 6 months.

Helplama Helpdesk is now Saufter.io!