How The Customer Effort Score (CES) KPI Can Skyrocket Sat...

Customers expect quick and effortless interactions with your business. That’s why Customer Effort Score (CES) has become a critical Key Performance Indicator (KPI) for measuring the ease of doing business with your company. CES tells you how much effort your customers have to put in to resolve their issues, and it’s directly linked to customer loyalty and satisfaction. The lower the effort, the happier the customer.

What is the Customer Effort Score (CES) KPI?

Customer Effort Score (CES) is a metric that assesses how easy or difficult it was for a customer to complete a task with your company. Whether it’s getting help from customer service, navigating a website, or finding product information, CES tracks the friction points in your customer experience. Which at the end can help you to reach Call Center automation, and Contact Center automation.

The CES question is typically framed as: “How easy was it to resolve your issue with us today?” Customers respond on a scale from “very easy” to “very difficult.” The goal is to keep the score as low as possible, indicating minimal effort for customers.

Why CES Matters

Effort drives loyalty: According to research published on Gartner, 96% of customers who experienced a high-effort service interaction became more disloyal, while only 9% of those who experienced low-effort interactions expressed any disloyalty.
Customer effort predicts future behavior: Customers are far more likely to stay with a company that makes things easy for them. Reducing the effort required in customer interactions together with powerful GenAI models like, OpenAI o1, Anthropic Claude, and Google Gemini leads to fewer complaints, lower churn, and higher retention rates.

CES is one of the most forward-looking KPIs because it allows businesses to identify and remove obstacles before they lead to customer dissatisfaction.

How to Improve Customer Effort Score (CES) KPI

Streamline Customer Interactions: Simplify the process for customers to get help or answers to their questions. Teneo Customer Automation platform can significantly reduce customer effort by automating common tasks, such as providing FAQs, guiding customers through self-service options, or routing them to the right department seamlessly. Customers no longer have to navigate complex phone trees or repeat information, making interactions quick and painless.
Implement Proactive Support: Proactive customer service—such as offering help before customers even ask for it—can greatly reduce effort. For example, AI-powered chatbots can pop up on your website or app to offer assistance based on browsing behavior, anticipating customer needs before they even reach out for help.
Use Feedback to Pinpoint Problem Areas: Analyze CES feedback to identify and address bottlenecks in your processes. For instance, if customers frequently mention difficulties in navigating your website or long wait times, you can prioritize those areas for improvement. AI-driven analytics from Teneo can help pinpoint these friction points and suggest actionable changes.

Example: How Teneo Reduced CES for Telefónica

Telefónica Germany used Teneo Conversational IVR to significantly reduce customer effort by automating its customer service interactions. By routing customers to the right agents faster and offering self-service solutions via a conversational IVR system, they made it easier for customers to get the help they needed. This not only improved CES but also increased customer loyalty. You can read the Telefonica case study here.

Improving CES doesn’t just enhance customer satisfaction; it boosts loyalty and reduces churn. The lower the effort your customers need to expend, the more likely they are to stick with your business. Tools like Teneo’s Conversational AI and Teneo make it easier for customers to get answers and solve problems quickly, reducing frustration and improving the overall experience.

FAQs

What is Customer Effort Score (CES) and why is it a critical customer experience KPI?

Customer Effort Score (CES) measures how much effort customers must exert to resolve issues, complete purchases, or get questions answered. It’s critical because 96% of customers with high-effort experiences become disloyal (Gartner), while reducing customer effort increases loyalty by 40% and reduces service costs by 37%. CES typically ranges from 1-7, with scores below 3 indicating high effort and scores above 5 showing low effort experiences.

Optimize your CES measurement: Download our Customer Experience ROI Guide to understand how reducing customer effort drives business value.

How do you calculate and interpret Customer Effort Score effectively?

CES is calculated by asking customers “How easy was it to resolve your issue today?” on a 1-7 scale, then averaging responses. Scores of 1-2 indicate very high effort (critical), 3-4 show high effort (needs improvement), 5-6 represent low effort (good), and 7 indicates very low effort (excellent). Industry benchmarks show average CES scores of 5.5 across sectors, with top-performing companies achieving 6.2+ consistently.

What strategies most effectively reduce customer effort and improve CES scores?

Effective strategies include implementing conversational AI for instant resolution (reducing effort by 60%), creating comprehensive self-service options (handling 90% of routine inquiries), streamlining processes to eliminate unnecessary steps (40% improvement), providing proactive support (preventing 70% of potential issues), and ensuring first-contact resolution (improving CES by 50%). Organizations using these strategies see CES improvements of 1.5-2.0 points within 6 months.

How does Customer Effort Score correlate with other customer experience metrics?

CES strongly correlates with customer satisfaction (0.7 correlation), Net Promoter Score (0.6 correlation), and customer retention (0.8 correlation). For every 1-point CES improvement, customer satisfaction increases by 15%, NPS improves by 12 points, and retention rates increase by 8%. Companies with CES scores above 6.0 see 25% higher customer lifetime value and 30% lower service costs compared to those below 4.0.

Implement comprehensive CX measurement: Explore our Customer Experience Automation solutions to reduce customer effort across all touchpoints.

What are NPS and CSAT, and why are they essential customer experience KPIs?

Net Promoter Score (NPS) measures customer loyalty by asking “How likely are you to recommend us?” on a 0-10 scale, while Customer Satisfaction (CSAT) measures satisfaction with specific interactions on a 1-5 scale. They’re essential because NPS predicts business growth (companies with NPS >50 grow 2.5x faster), while CSAT indicates immediate service quality. Together, they provide comprehensive insight into customer sentiment and business performance.

Master CX measurement: Download our Customer Experience Automation Guide to understand how NPS and CSAT drive business outcomes.

How do you calculate NPS and CSAT scores, and what are good benchmark ranges?

NPS is calculated as % Promoters (9-10) minus % Detractors (0-6), ranging from -100 to +100. Industry benchmarks: Technology (30-40), Financial Services (25-35), Retail (20-30). CSAT is calculated as % satisfied customers (4-5 ratings) divided by total responses. Benchmarks: Technology (85-90%), Financial Services (80-85%), Retail (75-80%). World-class companies achieve NPS >70 and CSAT >90%.

What’s the relationship between NPS, CSAT, and business performance metrics?

Strong correlations exist: NPS correlates with revenue growth (0.7), customer retention (0.8), and word-of-mouth referrals (0.9). CSAT correlates with repeat purchases (0.6), reduced churn (0.7), and service efficiency (0.5). Companies with NPS >50 see 20% higher revenue growth, while those with CSAT >85% experience 25% lower churn rates and 30% higher customer lifetime value.

How can organizations improve both NPS and CSAT scores simultaneously?

Effective strategies include implementing omnichannel support (improving both scores by 15-20%), reducing response times (CSAT +25%, NPS +10%), personalizing interactions (both scores +20%), proactive issue resolution (NPS +30%, CSAT +15%), and continuous feedback loops (ongoing 5-10% improvements). Organizations using conversational AI see average improvements of 18 NPS points and 22% CSAT increase within 12 months.

Boost your CX scores: Schedule a Customer Experience consultation to discover how AI-powered solutions improve NPS and CSAT simultaneously.

What are the most important customer experience KPIs every business should track?

Essential CX KPIs include Net Promoter Score (loyalty measurement), Customer Satisfaction Score (interaction quality), Customer Effort Score (ease of experience), First Contact Resolution rate (efficiency), Average Response Time (speed), Customer Retention Rate (loyalty outcome), and Customer Lifetime Value (financial impact). Leading organizations track 8-12 KPIs across the customer journey, with 85% focusing on these core seven metrics for comprehensive CX measurement.

Implement comprehensive CX tracking: Explore our Customer Experience KPI Guide to understand which metrics drive the most business value.

How often should customer experience KPIs be measured and reviewed?

Measurement frequency varies by KPI: Real-time metrics (response time, queue length) should be monitored continuously, transactional metrics (CSAT, CES) measured after each interaction, relationship metrics (NPS) tracked quarterly, and strategic metrics (CLV, retention) reviewed monthly. High-performing organizations review CX dashboards daily, conduct weekly team reviews, monthly trend analysis, and quarterly strategic assessments to maintain optimal customer experience.

How do customer experience KPIs impact business financial performance?

CX KPIs directly correlate with financial outcomes: 1-point NPS improvement generates 3% revenue growth, 5% CSAT increase reduces churn by 15%, improving FCR by 10% decreases costs by 20%, and reducing response time by 50% increases conversion by 25%. Companies in the top quartile of CX performance see 80% higher revenue growth, 70% higher profitability, and 60% higher shareholder returns compared to bottom quartile performers.

Maximize CX ROI: Download our ROI Calculation Guide to understand the financial impact of customer experience improvements.

How The Customer Effort Score (CES) KPI Can Skyrocket Satisfaction