Experience Improvement Terms

Customer experience can make or break your company. Whether you’re a rookie or a seasoned pro in CX, check out our definition pages to learn more about CX buzzwords and jargon.

Customer Churn


Customer churn occurs when someone chooses to discontinue using your products or services—or in other words, they are no longer a customer. Also known as customer attrition, customer churn gives a business owner insight into how well their business is doing over time, which is an essential part of management and growth.

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Customer Effort Score (CES)


The customer effort score is an index from 1 to 7 that measures how easy a company makes it for customers to deal with its products and services. A company that provides effortless service gets a 7 while a company that makes it difficult gets a 1. In other words, the higher the CES, the better.

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Customer Experience (CX)


How customers feel about their collective experiences and interactions with a company—including their overall relationship with a specific brand.

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Customer Experience Management


According to the research firm Gartner, customer experience management is defined as “understanding customers and deploying strategic plans that enable cross-functional efforts and customer-centric culture to improve satisfaction, loyalty, and accuracy.” In other words, managing experiences to customers’ contentment.

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Customer Journey Map


The process of creating a visual representation of the journey a customer has with a company’s brand, products, services and people. The process of creating one is called a customer journey map.

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Customer Loyalty


Customer loyalty is believing that an organization’s product is the best option. It’s more than a casual friendship. Loyalty means sticking around when it isn’t easy, rejecting competition and believing that the customer-company relationship transcends products and services.

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Customer Satisfaction Score (CSAT)


An attempt at capturing how satisfied customers are with a company’s goods and services. A survey asks a customer to rate their satisfaction, typically on a scale from 1 to 5.

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Customer Value


Customer value is a customer’s perception of the value of your product or service. It’s especially important to remember that this value is determined by comparison to other similar products or services in the industry. Essentially, if a customer decides the benefits of the product outweighs the costs of the product or service, they will perceive a higher value of the company. If they decide the costs outweigh the benefits, the customers may regret purchasing the product—especially if a similar company offers one at a better perceived value. 

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Detractors


Detractors are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you.

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Employee Commitment


Employee commitment is an initiative that seeks to drive culture through trust, dependability, two-way exchanges, and communication.

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Employee Experience


Employee experience (EX) describes an individual worker’s collected perceptions throughout their time with a specific company. From first encounter as a potential hire through final interactions as their employment ends, employee experience takes into account every touchpoint across the entire employee journey.

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Enterprise Feedback Management (EFM)


The process of collecting, analysing, and taking action on customer feedback for an enterprise-class large company. It is principally involved with the distribution and analysis of surveys.

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Market Research


Explores hidden relationships within industry data, collected by a market research firm, in order to predict and forecast future events and behavior within the market.

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Market Segmentation


Market segmentation is a research strategy that separates different consumers in order to study their preferences, needs, and perspectives in order to optimize business practices, products, and experiences.

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Net Promoter Score


Net Promoter Score® (NPS) is a trademarked metric between -100 and 100 that captures in aggregate the propensity of a company’s customers to attract and refer new business or/and repeat business.

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Response Bias


Response bias is our human tendency to self-report inaccurate (or even totally false) answers to survey questions. It doesn’t matter if it’s intentional or accidental—if humans are inaccurately reporting on their experiences, this false information can negatively affect the data gathered from your survey. Unfortunately, if you aren’t getting accurate data from your surveys because of response bias, you can’t rely on it to improve experiences for your customers and employees. 

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Response Rate


Response rate is how many people actually answered your survey. You can send your survey out to hundreds of people, but not everyone will take the survey, and that can affect how much information you actually gather from your target audience.

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Survey


Surveys are highly customizable questionnaires that empower brands to quickly and easily reach a given audience. Such audiences may include (but are not restricted to) your customers, your employees, or folks beyond those two groups whose feedback you still need.

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Text Analytics


The methods and processes used for obtaining insights from unstructured data, turning survey text responses into quantitative data.

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Voice of the Customer (VoC)


The process of gathering vital information regarding what customers think and feel about their experiences with a business.

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Voice of the Employee (VoE)


The process of gathering and analyzing employee feedback to improve the customer experience.

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What Is eNPS?


eNPS or Employee Net Promoter Score is one way to measure employee engagement and satisfaction, adapted from the very similar customer satisfaction measurement, NPS.

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