5 Ways Investors Should Measure CX
Measuring a company's customer experience (CX) is essential for investors looking to make informed investment decisions. In addition, a company's CX can significantly impact its financial performance and long-term success, making it an essential factor to consider when evaluating potential investments. In this article, we'll discuss some practical methods investors can use to measure the CX of a company they are considering investing in.
Customer Surveys: One of the most direct ways to measure CX is to ask customers directly. Customer surveys can provide valuable insight into a company's strengths and weaknesses and can help investors understand the overall customer experience. Investors can commission their own customer surveys or look for publicly available customer satisfaction surveys to get an idea of the company's CX.
Social Media Monitoring: Social media platforms like Twitter, Facebook, and LinkedIn provide a wealth of information about a company's CX. Investors can use social media monitoring tools to track company mentions and look for any negative or positive comments about the company's customer service, product quality, or overall experience.
Net Promoter Score (NPS): The Net Promoter Score is a popular measure of customer loyalty and satisfaction. It measures the likelihood that a customer would recommend a company's products or services to others. Investors can look for publicly available NPS scores or commission their own surveys to measure the company's CX accurately.
Customer Complaint Data: Customer complaints can provide valuable insight into areas where a company is struggling with its CX. Investors can look for publicly available complaint data, such as that reported to regulatory agencies or industry associations, or they can look for online forums or review sites where customers may post complaints.
Employee Feedback: Employee feedback can provide valuable insight into a company's CX. Investors can look for publicly available employee satisfaction surveys or reach out to current and former employees to get an idea of the company's culture and how it impacts the customer experience.
When you evaluate any company for investment or purchase, the above five areas are ones you need to ensure you are asking about in your due diligence. If the organization has them or not, make sure you request that a third-party audit be performed to run the numbers independently to ensure consistency in the measurements. This way, you can have full transparency on just how clean or messy of a company you are acquiring and can adjust your multiple accordingly to the findings.
To Your Success & Prosperity,
Michael McMillan
