Next-gen KPIs for CX: Redefining customer experience measurement

As customer experience (CX) evolves, the way we measure success must evolve too. In the complex world of interconnected technology and processes, it’s no longer about how quickly an agent resolves an issue — true CX success requires a broader perspective that accounts for ease of interaction, long-term loyalty and revenue impact.

For years, traditional customer experience key performance indicators (KPIs) like customer satisfaction (CSAT), Net Promoter Score (NPS) and average handle time (AHT) have been the go-to metrics for measuring customer service efficiency and satisfaction. Research from TELUS Digital, in collaboration with Statista, found that these metrics remain widely used — CSAT is tracked by more than half (54%) of respondents, while over a quarter (26%) monitor AHT and 22% watch NPS.

While these KPIs offer valuable insights, they don’t always capture the full complexity of modern customer interactions. NPS gauges loyalty but doesn’t reveal specific pain points, while AHT can incentivize speed over quality, potentially leading to unresolved issues and lower customer satisfaction. Not to mention the growing need to account for automation and self-service in the journey, and the recognition that the employee experience can significantly impact the customer experience.

What’s promising is that the majority of leaders recognize a single metric does not define success, with 40% reporting using three different KPIs and 38% tracking four or more. In today's complex customer service landscape, relying solely on traditional metrics provides an incomplete picture of success. Modern CX leaders must adopt a multi-dimensional measurement approach that captures both operational efficiency and customer sentiment. This holistic approach enables organizations to identify correlations between operational performance and customer outcomes, ultimately driving more meaningful improvements in the overall customer experience.

In our series on redefining customer experience measurement, we explore the next generation of performance indicators that CX leaders should consider. This series will cover three critical areas: the evolution of CX measurement, innovative metrics for agent experience and cutting-edge KPIs for digital transformation and process improvement. We start with next-gen KPIs, setting the stage for a comprehensive exploration of how modern businesses can more effectively measure and enhance their customer experience strategies in today's dynamic marketplace.

The rise of next-generation KPIs for customer experience

In today’s omnichannel environment, customer journeys span multiple touchpoints, from chatbots and social media to self-service portals and live support. Traditional KPIs weren’t designed to measure how seamlessly these interactions flow or how much effort customers must exert to resolve their issues. Organizations that rely solely on traditional metrics risk missing critical insights into how customer experience directly impacts business performance.

As customer expectations evolve and digital transformation accelerates, enterprises need a way to capture the full impact of customer interactions. According to Sharang Sharma, vice president of Everest Group, in a TELUS Digital webinar, How to supercharge your CX with AI-fueled digital transformation, next-generation KPIs such as customer effort score (CES) and revenue per interaction are emerging to fill this gap. These provide a clearer link between CX improvements and business outcomes. While adoption is still in its early stages, interest is growing. “We’re going to see a huge change in the next two to three years,” Sharma predicts, as businesses recognize the need for KPIs that capture more than just operational performance.

Below, we explore some key customer experience metrics that brands should consider when building a modern CX measurement framework.

How to supercharge your CX with AI-fueled digital transformation

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Customer effort score (CES)

Research published in the Harvard Business Review as far back as 2010 found that reducing customer effort — rather than exceeding expectations — is the key to building loyalty. Customer effort score has since become a widely used metric, and was identified as the third most popular metric used by CX leaders to measure success in a survey conducted by TELUS Digital, in collaboration with Statista.

What is customer effort score?

Customer effort score measures how easy or difficult it is for a customer to resolve an issue, complete a transaction or obtain support. Typically collected through post-interaction surveys, CES asks customers to rate their experience on a scale, such as: “The company made it easy for me to solve my issue” (1 = Strongly disagree to 7 = Strongly agree). A high score indicates a smoother, more efficient experience, while a low score suggests frustration and friction in the customer journey.

Why does measuring customer effort score matter?

A customer trying to update their billing information expects a quick and seamless process. If they can complete it in just a few clicks, they leave satisfied. But if unclear instructions, long wait times or multiple agent transfers create frustration, their experience suffers. Without tracking CES, a company might not realize how these friction points impact loyalty and support costs.

Gartner research shows that low-effort interactions result in higher NPS (65 points higher than high-effort experiences), a 94% repurchase rate (compared to just 4% of those experiencing high effort) and 37% lower service costs by reducing repeat calls, escalations and channel switching. By actively measuring CES, organizations can pinpoint where customers encounter difficulties and make targeted improvements to streamline the experience.

Customer journey satisfaction (CJS)

A single interaction can shape a customer’s perception, but true CX success is determined by their entire journey with a brand. That’s why measuring customer journey satisfaction is essential for understanding overall CX performance.

What is customer journey satisfaction?

Customer journey satisfaction evaluates how satisfied customers are with their overall experience, from their first interaction with a company to their most recent. Unlike isolated touchpoint metrics, CJS provides a holistic view of how well an organization meets customer expectations across the entire journey. A high CJS score indicates interactions are intuitive, efficient and aligned with customer expectations, while a low score highlights areas that require attention.

Why does measuring customer journey satisfaction matter?

Imagine a situation where a customer enjoys a smooth online checkout process but struggles to get support when an issue arises. While a CSAT score might show high satisfaction for the purchase experience, it wouldn’t capture the frustration caused by poor post-sale support. CJS bridges this gap by evaluating the entire journey, helping businesses identify patterns, uncover friction points and make data-driven improvements. Without it, organizations risk overlooking critical gaps that could lead to dissatisfaction or churn.

Customer retention rate (CRR)

While acquiring new customers is important, retaining existing ones is far more cost-effective and essential for sustainable growth. In fact, according to HubSpot, “Acquiring new customers is five times more expensive than retaining existing [ones].” This makes customer retention rate a crucial metric for understanding long-term business success.

What is customer retention rate?

Customer retention rate measures the percentage of customers an organization retains over a specific period, offering a clear indicator of customer satisfaction and brand loyalty. High CRR reflects strong customer engagement, trust and perceived value, while a declining retention rate may indicate gaps in service, product quality or customer support.

Why does measuring customer retention rate matter?

Consider a subscription-based business that sees a steady stream of new sign-ups but struggles with cancellations after three months. Without tracking CRR, they might focus solely on acquisition efforts, missing an underlying issue — which could be unclear onboarding, lack of engagement or unmet expectations. By measuring CRR, businesses can identify these trends, detect early warning signs of churn and take proactive steps to improve retention.

Revenue per interaction (RPI)

Not all customer interactions hold the same value — some drive revenue, while others merely resolve issues. Understanding the financial impact of each engagement is key to optimizing CX strategies.

What is revenue per interaction?

For too long, customer service has been viewed as a cost center, measured by efficiency-driven metrics. Revenue per interaction measures the financial impact of each customer engagement, providing a clearer picture of how contact centers, digital channels and AI-powered assistants contribute to revenue generation.

Why does measuring revenue per interaction matter?

Envision a contact center where agents handle hundreds of inquiries daily. Without measuring RPI, leadership might focus solely on reducing call times rather than maximizing each interaction’s value. By tracking RPI, however, leadership may discover that longer, consultative conversations result in higher upsell rates and stronger customer loyalty. This insight shifts the focus from efficiency alone to meaningful engagements that not only drive both customer satisfaction and revenue, but make a stronger case for continued investment in CX initiatives.

Implementing a modern customer experience KPI framework

As enterprises evolve their customer experience strategies, adopting a modern KPI framework is essential. A balanced approach — integrating both traditional efficiency metrics and next-generation KPIs — provides a more comprehensive view of CX performance. Traditional KPIs ensure operational effectiveness, while next-gen metrics capture deeper insights into customer behavior, service accessibility and digital engagement. Together, they enable organizations to optimize both cost and value, driving long-term success.

At TELUS Digital, we remain at the forefront of CX innovation. For over two decades, we’ve helped brands worldwide access the right insights to measure and improve CX. Reach out to our team to see how our experts can help your business move beyond outdated performance indicators to build customer experiences that drive loyalty, efficiency and growth.

This article is the first in a three-part series exploring next-generation KPIs for customer experience measurement. Check back soon for part two, Next-gen KPIs for agent experience, followed by part three, Next-gen KPIs for digital transformation and process improvement.