Introduction
In a competitive marketplace, customer retention crucial. Attracting new customers is often five times more expensive than retaining existing ones. The Customer Effort Score (CES). is a powerful metric that provides insight into how easily customers achieve their goals - thus directly influencing retention.
In this article, we explain how CES works, why it predicts retention and how organizations apply it practically.
CES and customer retention: the science
1. Customers leave companies because of trouble
Research shows that customers leave because of difficult processes, not because of product quality or price. Difficult ordering, return or support processes significantly increase churn.
2. CES predicts loyalty better than satisfaction
Although CSAT and NPS are important, several studies show that effort is a better predictor of repeat purchases and long-term loyalty.
3. Psychological impact of effort
- High effort causes frustration and stress
- Low effort creates convenience and positive association
- Customers who don't have to make much effort become ambassadors faster
Practical application of CES for retention
1. Measure CES at critical times
- After purchase
- In support interactions
- Upon contract renewal or upgrade
2. Analyze high-effort processes
- Identify where customers get stuck
- Segment by customer type and value
3. Improve processes
- Simplify online transactions
- Introduce self-service and automation
- Train employees for efficient and empathetic support
4. Combine with NPS and CLV.
- CES measures convenience
- NPS measures loyalty
- CLV measures financial impact
Together, they offer a 360-degree view of customer retention
Practical examples
- Retail: One webshop improved its returns process. CES decreased by 20%, and repeat purchases increased by 15%.
- Telecom: A provider simplified changing subscriptions via app → CES improved, churn dropped with 10%.
- B2B SaaS: Low-effort onboarding via tutorials → CES increased, customer turnover significantly reduced.
CES and staff
A low CES not only means satisfied customers, but also less stress for employees. Efficient processes lead to fewer escalations, higher employee satisfaction and better service quality.
Conclusion
CES is more than a metric: it is a strategic tool for customer retention. Companies that invest in lowering effort see direct effects on loyalty, churn and revenue.
A low CES creates satisfied customers, ambassadors and sustainable growth.
