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The Customer Effort Score methodology is used to gauge the degree of effort that customers need to put forth when interacting with a company, product, or service. CES concentrates on assessing the simplicity, convenience, and effectiveness of the processes involved.
CES is usually obtained by asking a straightforward question, “How much effort did you have to make to solve your problem/complete the action you wanted?” No improvements needed as the text already adheres to the principles of effective business writing.
Customers are segmented into three categories depending on their feedback.
The customers found the product or service to be extremely user-friendly with no difficulties encountered. They expressed no hesitation to use the product or service again.
Customers found the product or service easy to use, but did encounter minor issues. If an option existed to make the process even smoother, they may be more likely to switch to a different product or service.
These customers find the product or service excessively complicated and inefficient. They are seeking an alternative service or product that is more user-friendly.
The resulting CES is determined by computing the arithmetic mean of all values.
The resulting CES is calculated as the arithmetic mean between all values. It takes values from 1 (very complicated product/service) to 7 (very easy and efficient service/product).
Customer Effort Score (CES) is correlated with company revenue
A correlation between Customer Effort Score (CES) and company revenue may exist, although this correlation may vary depending on the specific conditions and context of the company.
A lower CES value indicates that customers need to put in more effort when interacting with the company, its products, or services. Higher efforts may be linked to negative experiences such as difficulty in communication, lengthy processes, and ineffective problem-solving. These factors could harm customer satisfaction and loyalty.
If customers encounter excessive effort, they may shift to competitors or cease patronizing the company. This, in turn, could shrink the firm’s revenue.
Conversely, a higher CES score suggests that customers enjoy a seamless and effortless interaction with the company. Lower effort can lead to positive outcomes, including efficient communication, simplified processes, and easy problem-solving. Such factors can significantly impact customer satisfaction and loyalty.
When customers enjoy a seamless and convenient experience, they are more likely to remain loyal and make repeat purchases from the company, ultimately boosting sales revenue.
However, it’s important to remember that CES alone isn’t the sole factor that influences a company’s revenue. Other factors, such as product and service quality, competitive environment, and marketing and sales strategies, can also contribute to revenue growth.
CES offers valuable insights into the level of effort customers have to exert and can guide companies in identifying areas for improvement. However, it is important to consider other metrics to gain a more comprehensive view of the relationship between CES and company revenue.
Advantages and disadvantages of Customer Effort Score (CES):
The CES metric is easy to comprehend and can be effortlessly executed in surveys or questionnaires to measure customer satisfaction.
Focus on Customer Efforts:
Customer Effort Score (CES) emphasizes the level of effort customers have to put in as a critical factor in achieving customer satisfaction. Reducing customer effort can result in an enhanced customer experience and increased customer loyalty.
Identification of Areas for Improvement:
The CES results can help identify specific areas that need improvement and focus can be placed on eliminating barriers that hinder customers from achieving their objectives.
A limited view:
CES mainly emphasizes on customer effort, neglecting other aspects of customer experience such as product or service quality.
Lack of context:
CES may offer a narrow perspective on customer feedback as it does not allow for in-depth explanations or consideration of other factors affecting customer satisfaction.
Dependence on question formulation:
Proper phrasing of the CES question is critical in obtaining significant outcomes. An ineptly worded inquiry can result in distorted results and an inability to comprehend customer effort.
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Automated surveys in which the customer responds on their mobile, computer or tablet. Collection is done via emails, SMS, QR codes on product packaging, invoices, receipts, etc.
Collection of customer or employee satisfaction at branches and company premises. Allows you to collect even from customers you do not have contact with. Collection takes place in locations where the customer experience is full.
A quick and cost-effective one-time determination of customer or employee satisfaction and their suggestions for improvement. When you want to quickly know where you stand and what specifically to start improving.