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Customer experience KPIs: What, why, and how (2024)

Stay ahead of the curve – our article unravels the 4 super important Customer experience KPIs shaping the future of customer satisfaction.

January 3, 2024
Team Blitzllama

In product development, understanding customer experience is paramount. Nevertheless, it is difficult to measure its effectiveness. Product owners and designers often struggle to define and measure key customer experience KPIs. 

Deciphering what metrics actually matter is the challenge, leading to potential gaps in customer satisfaction. Empathizing with this predicament, this article unravels the what, why, and how of Customer Experience KPIs. 

By simplifying the complexities, we aim to equip product owners and designers with actionable insights, ensuring a more robust and customer-centric approach in their design and development endeavors.

What is customer experience?

The customer experience is the overall impression a brand makes on a customer. It results from every interaction a customer has with a product or service. 

It encompasses how easy it is to use and the overall satisfaction of the customer using the product. Product owners and designers play a crucial role in shaping this experience. They must understand user needs, preferences, and pain points. 

A positive customer experience leads to loyalty and repeat business. Conversely, a negative one can drive customers away. Successful product design focuses on creating seamless, enjoyable interactions to foster a positive customer experience and build lasting relationships.

Now that we've defined customer experience, let's explore why it holds such significant importance for product owners and designers.

Why does customer experience matter?

In a competitive market, where products with similar features abound, it's the overall experience that sets a brand apart. Positive customer experiences result in repeat business and positive word-of-mouth, driving growth. As a product owner or designer, recognizing the pivotal role of customer experience is crucial for creating products that resonate with your target audience.

1) Increases customer satisfaction and advocacy

A seamless customer experience is pivotal as it directly correlates with heightened satisfaction and advocacy. When customers find it effortless to interact with your product, they are more likely to be pleased with their overall experience. 

This satisfaction translates into positive word-of-mouth referrals, creating a network of advocates who share their positive encounters. Satisfied customers are not just one-time buyers; they become loyal patrons who willingly promote your product to their circles, amplifying your brand’s reach and credibility.

2) Boosts brand loyalty and customer retention

Customer loyalty is built on the foundation of exceptional experiences. When users consistently encounter a product that aligns with their expectations and needs, they are inclined to remain loyal. A well-crafted customer experience fosters a sense of trust and reliability, encouraging customers to choose your product repeatedly. 

This loyalty is a strategic asset, reducing customer churn and increasing retention rates. In a market flooded with options, retaining customers is as crucial as attracting new ones, and a positive experience is a powerful catalyst for brand allegiance.

3) Enhances competitive advantage

In the fiercely competitive landscape of modern business, standing out is imperative. A superior customer experience acts as a unique selling proposition, setting your product apart from competitors. When users compare similar offerings, the one with a smoother, more enjoyable interaction often emerges as the preferred choice. 

This distinctiveness not only attracts new customers but also solidifies your position in the market. By consistently delivering an exceptional experience, you create a competitive advantage that is challenging for rivals to replicate, securing your product's relevance and success.

4) Drives revenue and profitability

A positive customer experience is not just a cost but a lucrative investment. Satisfied customers are more willing to open their wallets and make repeat purchases. The ease and pleasure associated with your product lead to increased customer spending, directly impacting your revenue. 

Furthermore, happy customers are less price-sensitive and more likely to explore additional services or premium features, contributing to improved profitability. Investing in refining and optimizing the customer experience isn’t just a gesture of goodwill; it's a strategic move that pays dividends by driving sustained financial growth.

Having grasped the importance of customer experience, let's delve into the key performance indicators (KPIs) that help gauge and improve it.

What are customer experience KPIs?

Customer Experience Key Performance Indicators (KPIs) gauge user satisfaction and product performance. They track vital metrics to assess the effectiveness of products or services from the customer's perspective. 

KPIs, crucial for product owners and designers, include customer feedback, Net Promoter Score (NPS), and customer satisfaction (CSAT) surveys. These indicators measure user loyalty, overall satisfaction, and the likelihood of recommending a product. 

Monitoring KPIs helps identify areas for improvement and guides design decisions. By actively utilizing customer experience KPIs, product teams can enhance user-centric design, boost customer loyalty, and drive overall success in the competitive market.

With a grasp on what CX KPIs are, let's explore why tracking them is super important for product owners and designers.

Why is tracking customer experience KPIs super important?

Tracking customer experience KPIs is crucial as it provides actionable data for decision-making. It enables businesses to pinpoint strengths and weaknesses in their customer interactions, allowing for targeted improvements. 

Real-time tracking of KPIs ensures that companies can swiftly respond to changing customer preferences, maintaining a competitive edge in the market. Here are 5 reasons why it’s super important:

1) Measuring progress and identifying areas for improvement

Tracking customer experience Key Performance Indicators (KPIs) is crucial for product owners and designers to gauge the effectiveness of their strategies. By measuring progress through metrics like customer satisfaction scores and Net Promoter Score (NPS), teams can identify areas where the customer experience falls short. This real-time feedback allows for prompt adjustments, ensuring continuous improvement in the product or service. Without monitoring these KPIs, teams risk operating in the dark, unaware of customer pain points and missed opportunities for enhancement.

2) Setting benchmarks and comparing performance

Establishing benchmarks is vital in the pursuit of excellence. Customer experience KPIs provide a baseline for product owners and designers to set achievable goals and standards. By regularly assessing metrics such as customer retention rates and response times, teams can measure their performance against industry benchmarks or their own past achievements. This comparison enables a clear understanding of where the product stands in the competitive landscape, allowing for informed adjustments and strategies to outshine the competition.

3) Demonstrating ROI and securing investment

For product owners and designers, demonstrating Return on Investment (ROI) is paramount in securing continued support and investment. Customer experience KPIs serve as tangible evidence of the impact of product improvements on customer satisfaction and loyalty. By showcasing positive trends in metrics like customer lifetime value and revenue per user, teams can make a compelling case for additional resources and funding. This data-driven approach not only justifies past investments but also guides future decision-making, aligning business goals with enhanced customer experiences.

4) Data-driven decision making

In the fast-paced world of product development, decisions must be rooted in data rather than intuition. Customer experience KPIs provide a solid foundation for data-driven decision-making. By analyzing metrics such as customer feedback and user engagement, product owners and designers can make informed choices that resonate with their target audience. This approach minimizes guesswork and maximizes the likelihood of success, ensuring that every decision contributes positively to the overall customer experience and product success.

5) Fostering a customer-centric culture

Building a customer-centric culture is essential for sustained success. Customer experience KPIs serve as a shared language for product owners and designers to align their efforts with the needs and preferences of customers. By regularly tracking metrics related to customer satisfaction and loyalty, teams can rally around a common goal: delivering exceptional experiences. This shared focus fosters collaboration, innovation, and a commitment to consistently exceeding customer expectations. In a customer-centric culture, everyone plays a role in shaping products that resonate with and delight the end-users, ultimately driving long-term success for the business.

Now that we understand the importance of tracking CX KPIs, let's narrow down to the specific KPIs that should be on every product owner's radar.

What are the 4 customer experience KPIs to measure

The four key customer experience KPIs to measure are customer satisfaction (CSAT), Net Promoter Score (NPS), customer effort score (CES), and churn rate. 

4 customer experience KPIs to measure

These metrics provide a comprehensive view of customer sentiment, loyalty, and the overall effectiveness of your product or service. By focusing on these specific KPIs, product owners and designers can efficiently target areas for improvement and innovation:

1) Net Promoter Score (NPS)

Net Promoter Score (NPS) is a metric that measures the likelihood of customers recommending a company's products or services to others. It gauges customer loyalty and satisfaction based on a single question: "How likely is it that you would recommend our company/product/service to a friend or colleague?"

How to calculate it:

NPS is calculated by subtracting the percentage of detractors (those who score 0-6) from the percentage of promoters (those who score 9-10).

Net Promoter Score (NPS)

Industry benchmarks:

NPS benchmarks vary across industries. Generally, a positive score indicates a good customer experience, with scores above 30 considered excellent. Tech companies often have higher NPS benchmarks compared to industries like telecommunications.

How to improve:

  • Understand feedback: Analyze feedback from promoters and detractors to identify areas of improvement.
  • Address pain points: Tackle common issues highlighted by detractors to enhance overall satisfaction.
  • Engage promoters: Leverage positive feedback by encouraging promoters to become brand advocates.
  • Employee training: Ensure staff is trained to provide excellent service, positively impacting NPS.

2) Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) is a metric that measures how satisfied customers are with a specific interaction, transaction, or the overall product/service. It usually involves a simple question like, "How satisfied are you with your experience?"

How to calculate it:

CSAT is calculated as the percentage of positive responses (usually a scale of 1-5 or 1-10) out of the total responses.

Customer Satisfaction Score (CSAT)

Industry benchmarks:

CSAT benchmarks depend on the industry, but a score above 70% is generally considered good. Industries like e-commerce and hospitality often have higher CSAT benchmarks.

How to improve:

  • Personalize interactions: Tailor interactions to individual preferences and needs for a more personalized experience.
  • Quick issue resolution: Resolve customer issues promptly, demonstrating a commitment to customer satisfaction.
  • Proactive communication: Keep customers informed about updates, changes, or new features to enhance satisfaction.
  • Regular surveys: Periodically gather feedback through surveys to identify areas for improvement.

3) Customer Effort Score (CES)

Customer Effort Score (CES) measures the ease with which customers can achieve their goals when interacting with a company. It often involves a question like, "How easy was it for you to [complete a task]?"

How to calculate it:

CES is usually measured on a scale, with respondents selecting a score. The average score reflects the overall Customer Effort Score.

Customer Effort Score (CES

Industry benchmarks:

Benchmarks for CES can vary, but lower scores indicate higher customer effort. A lower CES is generally favorable, especially in industries where ease of use is crucial, such as technology or software.

How to improve:

  • Streamline processes: Simplify customer journeys and interactions to reduce friction and effort.
  • User-friendly interfaces: Design interfaces and platforms with a focus on user-friendliness.
  • Proactive assistance: Anticipate customer needs and provide assistance before issues arise.
  • Feedback integration: Use customer feedback to identify pain points and continuously improve processes.

4) Customer Churn Rate

Customer Churn Rate measures the percentage of customers who stop using a product or service over a specific period. It reflects customer dissatisfaction and is a key indicator of business health.

How to calculate it: 

Churn Rate is calculated by dividing the number of customers lost during a specific period by the total number of customers at the beginning of that period.

Customer Churn Rate

Industry benchmarks: 

Churn Rate benchmarks vary across industries. In industries like subscription services, lower churn rates are preferred, indicating better customer retention.

How to improve:

  • Customer feedback analysis: Understand reasons for churn through customer feedback and address underlying issues.
  • Customer retention programs: Implement loyalty programs or special offers to incentivize customer retention.
  • Proactive engagement: Anticipate potential issues and engage with customers to address concerns before they decide to leave.
  • Continuous improvement: Regularly assess and improve products and services based on customer needs and preferences.

Now that we've identified the crucial CX KPIs, let's explore how to effectively measure and interpret them for actionable insights.

How to effectively measure key customer experience KPIs

Gathering data at various touchpoints in the customer journey provides a holistic view of their experiences. By implementing a systematic approach to measurement, product owners and designers can pinpoint areas of success and those that need attention, ensuring a proactive stance toward improving customer satisfaction:

1) Set clear goals and objectives.

To measure key customer experience (CX) KPIs effectively, start by setting clear goals and objectives. Define what success looks like for your business and how it aligns with customer satisfaction. 

Establish specific, measurable, achievable, relevant, and time-bound (SMART) objectives. For example, aim to increase overall customer satisfaction by 15% within the next quarter. 

Clear goals provide a framework for selecting relevant KPIs and guide your team toward achieving tangible improvements in customer experience.

2) Choose the right KPIs for your business.

Selecting the right Key Performance Indicators (KPIs) is crucial for accurate measurement. Identify metrics that directly align with your defined goals and objectives. Common CX KPIs include Net Promoter Score (NPS), Customer Satisfaction (CSAT), and Customer Effort Score (CES). 

Tailor your choices to the specific needs of your business and industry. For instance, if user onboarding is a critical aspect of your product, focus on metrics related to ease of use and the time it takes for customers to achieve their goals. Precision in KPI selection ensures meaningful insights into your customer experience.

3) Track and analyze data regularly.

Consistent tracking and analysis of customer experience data are essential for ongoing improvement. Implement robust data collection processes to capture relevant customer interactions. 

Regularly analyze this data to identify patterns, trends, and areas for improvement. Utilize AI and analytics tools to automate data collection and reporting. 

By consistently monitoring KPIs, you can swiftly identify shifts in customer sentiment and proactively address emerging issues. Regular data analysis serves as a foundation for making informed decisions that positively impact customer satisfaction.

4) Take action to improve your CX based on the data.

Data alone is insufficient; the key lies in taking actionable steps based on insights gained. When you observe trends indicating customer dissatisfaction or identify pain points in the user journey, develop and implement strategies to address these issues promptly. 

Whether it involves refining product features, optimizing customer support processes, or enhancing user interfaces, the data-driven actions should directly align with the identified areas for improvement. 

Actively using data to guide decision-making ensures a responsive and customer-centric approach to continuously enhance the overall customer experience.

5) Use a combination of quantitative and qualitative metrics.

A balanced approach to measuring CX involves considering both quantitative and qualitative metrics. While quantitative metrics provide numerical data (such as NPS or CSAT scores), qualitative metrics offer deeper insights into customer perceptions and emotions. 

Leverage tools like surveys, customer interviews, and social media listening to gather qualitative data. This combination provides a comprehensive view of customer experience, allowing you to understand not only what needs improvement but also why. 

Striking a balance between the quantitative and qualitative aspects ensures a nuanced understanding of your customers' experiences.

6) Consider customer feedback at every touchpoint.

Customer feedback should be solicited and considered at every touchpoint in their journey with your product. Implement feedback mechanisms across various stages, from onboarding to post-purchase support. 

This holistic approach enables you to capture diverse perspectives and uncover pain points that may arise at different interaction points. By incorporating feedback into your measurement strategy, you create a continuous loop of improvement, addressing specific issues highlighted by customers and refining the overall experience throughout their entire interaction with your product.

7) Make CX a company-wide priority.

To truly excel in customer experience, make it a company-wide priority. Instill a customer-centric culture that permeates all departments, from product development to customer support. 

Ensure that everyone in the organization understands the importance of delivering an exceptional customer experience. Align performance goals and incentives with customer satisfaction metrics to motivate teams across the company. 

By fostering a culture where every employee recognizes their role in shaping the customer experience, you create a cohesive and unified approach that consistently prioritizes customer satisfaction.

Having covered the methods for effective measurement, let's now focus on the tools that can facilitate this process.

Best tools to measure customer experience KPIs

Several tools are available to aid product owners and designers in measuring customer experience KPIs. From comprehensive analytics platforms to user-friendly survey tools, selecting the right tools is crucial for accurate data collection and interpretation. The following 3 tools empower teams to make informed decisions, enhance user experiences, and drive overall product success:

1) Blitzllama


Blitzllama stands out as a top tool for measuring customer experience Key Performance Indicators (KPIs). Its robust AI analysis capabilities make it a favorite among product owners and designers. With Blitzllama, tracking customer interactions becomes seamless. The tool offers real-time insights into user behavior, allowing businesses to identify pain points and areas for improvement promptly. Its comprehensive dashboards empower product teams to make data-driven decisions, enhancing the overall customer experience.

2) Mixpanel


For product owners and designers seeking a versatile solution, Mixpanel proves to be an invaluable asset in evaluating customer experience KPIs. Mixpanel excels in providing detailed analytics on user engagement, conversion rates, and feature usage. The tool's event-tracking functionality enables precise monitoring of specific user actions, offering a granular understanding of customer journeys. Mixpanel's A/B testing features further aid in optimizing user experiences, ensuring that design decisions align with user preferences and expectations.

3) Hotjar


Hotjar emerges as a powerful tool for those focused on visualizing and understanding user behavior. This tool offers heatmaps, session recordings, and surveys to capture comprehensive insights into customer interactions. Product owners and designers benefit from Hotjar's ability to visualize how users navigate through websites or applications, identifying areas of interest and potential friction points. The platform's feedback surveys facilitate direct communication with users, providing a qualitative layer to complement quantitative data. Hotjar is a go-to tool for optimizing the customer experience by combining both quantitative and qualitative analytics.


In conclusion, prioritizing customer experience KPIs is imperative for product owners and designers. These metrics offer actionable insights into user satisfaction, aiding in informed decision-making. 

By understanding what KPIs to measure, why they matter, and how to implement them effectively, teams can enhance product design and refine user interactions. Proactive tracking of KPIs ensures a continuous feedback loop, fostering iterative improvements. 

As product owners and designers align their efforts with customer-centric KPIs, they lay the foundation for sustained success, driving user loyalty and positive brand perception. Embracing a data-driven approach empowers teams to deliver products that not only meet but exceed customer expectations.

FAQs related to customer experience KPIs

What are the KPIs related to customer experience?

Key Performance Indicators (KPIs) play a crucial role in assessing and enhancing customer experience. These metrics provide insights into customer satisfaction, loyalty, and overall brand perception. Common KPIs include Customer Satisfaction Score (CSAT), Customer Effort Score (CES), Net Promoter Score (NPS), Customer Lifetime Value (CLV), Customer Retention Rate, and Customer Churn Rate.

What are the six measures of customer experience?

1) Customer Satisfaction Score (CSAT): Measures customer satisfaction based on a specific interaction or experience, often using a scale.

2) Customer Effort Score (CES): Evaluates the ease with which customers can accomplish tasks, gauging overall effort in their journey.

3) Net Promoter Score (NPS): Assesses customer loyalty by measuring the likelihood of them recommending the product or service to others.

4) Customer Lifetime Value (CLV): Quantifies the total value a customer brings to the business over their entire relationship.

5) Customer Retention Rate: Indicates the percentage of customers retained over a specific period, highlighting loyalty.

6) Customer Churn Rate: Measures the rate at which customers discontinue using a product or service, indicating dissatisfaction.

What metrics to track from customer experience?

Effective tracking involves monitoring specific metrics to gain actionable insights. Focus on measuring CSAT, NPS, and CES to understand satisfaction and loyalty. Analyze CLV to assess the long-term impact of customer relationships. Keep a close eye on retention and churn rates to identify trends and potential issues. By continuously tracking these metrics, product owners and designers can make informed decisions to enhance the overall customer experience.

What are the 5 C’s of customer experience?

1) Communication: Clear and consistent communication ensures customers understand the product or service, reducing confusion and enhancing satisfaction.

2) Consistency: Maintaining uniformity across all touchpoints builds trust and reliability, contributing to a positive customer experience.

3) Collaboration: Encouraging collaboration between different departments fosters a cohesive approach, aligning efforts to meet customer needs.

4) Company-wide adoption: Ensure that customer-centric principles are embraced throughout the organization, making customer experience a shared responsibility.

5) Complete efficiency: Strive for operational efficiency in delivering products or services, minimizing delays and streamlining processes to meet customer expectations.

What are the 5 E’s of customer experience?

1) Entice: Capture customer interest through compelling marketing and product presentation.

2) Enter: Provide a seamless entry into the customer journey, making onboarding intuitive and hassle-free.

3) Engage: Foster active engagement through personalized experiences, ensuring customers feel valued and heard.

4) Exit: Create a positive exit experience, even if a customer decides to discontinue, leaving the door open for future interactions.

5) Extend: Continuously extend efforts to enhance the customer experience, adapting to evolving needs and preferences.

What are the 3 R’s of customer experience?

1) Reliable: Consistently deliver dependable products or services to establish trust and credibility.

2) Responsive: Act promptly to customer queries and concerns, demonstrating attentiveness and a commitment to customer satisfaction.

3) Relationship: Cultivate meaningful, long-term relationships by understanding and addressing individual customer needs, fostering loyalty and advocacy.