Customer Experience Glossary of Terms
Your go-to guide for mastering Customer Experience terminology. Learn the key concepts that drive customer loyalty, satisfaction, and long-term business growth.
Why This Glossary?
Customer experience is the heart of every successful business. This glossary breaks down the terms that matter most so you can deliver exceptional service and build stronger relationships.
Customer Experience Terms A-Z
Churn Prevention
Churn Prevention involves identifying at-risk customers and proactively addressing their concerns. Effective churn strategies improve retention and revenue stability.
Customer Advocacy
Customer Advocacy turns satisfied customers into promoters who actively endorse your brand. Strong advocacy drives referrals and strengthens brand reputation.
Customer Churn
Customer Churn measures the rate at which customers stop doing business with you. Reducing churn requires understanding and addressing customer dissatisfaction.
Customer Effort Score (CES)
Customer Effort Score (CES) measures how easy it is for customers to interact with your business, such as resolving an issue or making a purchase. Lower effort leads to higher satisfaction and loyalty.
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) calculates the total revenue a business can expect from a single customer. It’s a vital metric for understanding the long-term value of customer relationships.
Customer Loyalty Programs
Customer Loyalty Programs reward repeat customers with incentives like discounts or exclusive perks. These programs increase retention and lifetime value.
Customer Retention
Customer Retention focuses on keeping existing customers engaged and loyal. Strategies include loyalty programs, regular communication, and excellent service delivery.
Customer Segmentation
Customer Segmentation divides customers into groups based on characteristics like demographics, behaviours, or buying patterns. This allows for tailored marketing and service approaches.
Feedback Loops
Feedback Loops involve gathering and acting on customer feedback to improve products, services, and experiences. Closed feedback loops ensure customers see their input making an impact.
First Response Time (FRT)
First Response Time (FRT) tracks the time it takes for a business to respond to customer inquiries. Faster response times lead to higher satisfaction and loyalty.
Knowledge Base
A Knowledge Base is a self-service resource containing articles, guides, and FAQs. It empowers customers to solve issues independently and reduces support workload.
Multi-Channel Support
Multi-Channel Support allows customers to reach your business through their preferred channel, such as chat, email, or phone. This flexibility improves satisfaction and accessibility.
Net Promoter Score (NPS)
Net Promoter Score (NPS) gauges customer loyalty by asking how likely they are to recommend your business. High scores indicate strong brand advocacy and retention.
Omnichannel Experience
An Omnichannel Experience ensures seamless customer interactions across all channels, from email to social media. It’s critical for creating consistent and unified messaging.
Personalisation
Personalisation tailors customer experiences based on individual preferences, behaviours, and history. It enhances satisfaction and increases engagement.
Proactive Support
Proactive Support anticipates customer needs and addresses issues before they arise. This approach builds trust and enhances the overall experience.
Service Level Agreements (SLAs)
Service Level Agreements (SLAs) set clear expectations between businesses and customers regarding the level of service to be delivered. SLAs are vital for accountability and trust.
Touchpoints
Touchpoints are any interactions a customer has with your business, such as visiting your website or speaking with customer service. Mapping touchpoints helps improve the overall experience.
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