Metrics for Product Managers : User Satisfaction metrics

Metrics to evaluate user satisfaction

Churn and bounce rates, traffic, and retention rate tell about customer perception of your service or product indirectly. The primary way to learn if the customers are happy is direct customer feedback. Net promoter score, customer satisfaction score, and customer effort are metrics that can be obtained via surveys.

Net Promoter Score (NPS)

This metric measures the number of loyal customers who are likely to recommend a product (promoters), and those customers who hate it (detractors). To calculate NPS, ask users to rank your product from 0 to 10. Detractors would give it from 0 to 6 points, users with 7-8 points are neutrals, and those who gave it 9-10 are promoters. The NPS formula is:

NPS = % of promoters – % of detractors

An example of NPS

Bain and Company who initially introduced the metric identified that high NPS leads to 20-60 percent of organic growth. Same goes for negative NPS – a high number of detractors results in economic penalties.

How to use NPS. NPS awareness throughout the organization motivates employees to deliver more value, react to issues faster, and get to the root of detractors’ problems. Besides, any information learned about detractors should be shared among all departments in a common effort to improve the overall experience of your customers.

Customer Satisfaction Score (CSAT)

It measures the overall level of content or discontent of a user about a specific product or service feature. Usually, users are asked to rank a product or service on a scale of 1-3, 1-5, or 1-10. It’s calculated by summing the score and dividing it by the number of respondents. Unlike NPS, CSAT is directed towards evaluating satisfaction with a particular feature. Customer experience is measured with other metrics: Customer Effort Score (CES) . Measured like the CSAT, you need a customer survey where users rank how easy it was to find a necessary information about a product.

How to use the CSAT. Ask for user feedback at several points through the customer journey and do it before another subscription renewal so you have time to introduce improvements. Also, use this metric as an industry benchmark – the American Customer Satisfaction Index logs data from the biggest companies and compares stats with past results.

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