The A to Z glossary of customer satisfaction and customer experience management

In the modern business landscape, customer satisfaction and customer experience management have evolved from buzzwords to core strategic pillars.

This glossary serves as an essential guide, demystifying the key concepts, to navigate the path to increased customer loyalty, sustainable growth, and a sustainable competitive advantage.

Click any letter below to instantly jump to the section of the glossary containing terms that start with that letter.

A

Advocacy
The extent to which a customer recommends a company, product, or service to others; often measured through Net Promoter Score (NPS).

Attribution
The process of identifying and assigning credit to the specific marketing touchpoints or interactions that led to a desired customer outcome, such as a sale, a sign-up, or a conversion.

Attrition
The gradual loss of customers over time due to dissatisfaction, better alternatives, or changing needs.

Attrition rate
The percentage of customers or subscribers who discontinue their relationship with a company during a given time period. Also known as customer churn rate.

B

Brand advocate
A customer who is so satisfied with a brand, product, or service that they voluntarily and enthusiastically promote it to others.

Brand loyalty
The tendency of customers to consistently choose one brand over competitors due to positive experiences and emotional connection.

Brand perception
The way customers view and feel about a brand based on their experiences and interactions.

Business-to-Business (B2B)
Commercial transactions and relationships between businesses.

Business-to-Consumer (B2C)
Commercial transactions and relationships between a business and individual end consumers.

C

Churn (or Customer attrition)
The loss of customers who end their relationship with a company or stop using its products or services.

Churn rate
The percentage of customers who stop doing business with a company during a specified time frame.

Close the loop
The practice of following up with customers after they provide feedback to address their concerns and communicate the resolution.

Closed feedback loop
A systematic process where a company collects customer feedback, acts on it and uses the insights to adjust business processes for continuous improvement.

Customer
An individual or organization that purchases goods or services from a business.

Customer Acquisition Cost (CAC)
The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.

Customer-centricity
A business philosophy and culture that places the customer at the core of all company decisions, strategies, and operations.
 
Customer delight
Exceeding customer expectations by providing an unexpected, positive experience that surprises and emotionally connects the customer to the brand, going beyond mere satisfaction.
 
Customer engagement
The emotional and behavioral connection between a customer and a brand, reflected in their level of interaction, participation, and advocacy.
 
Customer Effort Score (CES)
A metric that measures how much effort a customer had to exert to resolve an issue, make a purchase, or complete a transaction.

Customer Experience (CX)
The overall perception a customer has of a brand based on all interactions and touchpoints throughout the entire customer journey, from initial awareness to post-purchase support.

Customer Experience Management (CEM/CXM)
The practice of designing and responding to customer interactions to meet or exceed expectations and improve satisfaction, loyalty, and advocacy.

Customer feedback
Information provided by customers about their experiences, often collected through surveys, reviews, or social listening.

Customer feedback loop
The process of collecting customer feedback, analyzing it, acting on the insights, and then closing the loop by informing the customer of the changes made.

Customer journey
The complete sequence of experiences and touchpoints a customer goes through when interacting with a company, from awareness to post-purchase.

Customer journey map
A visual representation of the customer's experience across all touchpoints and stages of interaction with a brand, to identify pain points and areas for improvement.

Customer Lifetime Value (CLV/LTV)
The total revenue a business can expect from a single customer account throughout their relationship.

Customer persona
A semi-fictional representation of an ideal customer based on real data, demographics, behaviors, motivations, and goals.

Customer Relationship Management (CRM)
Technology and strategies used to manage and analyze customer interactions and data throughout the customer lifecycle.

Customer retention
The activities and actions companies take to reduce customer defection and keep existing customers engaged.

Customer retention rate
The percentage of customers a company retains over a specific period, calculated by comparing the number at the start versus the end of a period.

Customer Satisfaction (CSAT)
A metric that measures how a company's products, services, and overall experience meet or surpass customer expectations.

Customer sentiment
The feelings, attitudes, and opinions (positive, negative, or neutral) expressed by customers toward a brand, often analyzed through customer feedback, reviews, and social media.

Customer service
The support and assistance provided to customers before, during, and after purchasing products or services.

Customer touchpoint
Any point of interaction between a customer and a brand, including physical, digital, and human interactions.

D

Detractor
Customer who expresses dissatisfaction or is unlikely to recommend a brand.

Digital experience
The overall impression and satisfaction a customer has when interacting with a brand through digital channels.

E

Emotional connection
The psychological bond between a customer and a brand that goes beyond transactional relationships.

Engagement rate
A metric measuring the level of interaction and involvement customers have with a brand across various channels.

F

Feedback
Information, opinions, and reactions provided by customers about their experiences with a product, service, or interaction with a company.

Feedback loop
The process of collecting, analyzing, and acting on customer feedback to improve products, services, and experiences.

First contact resolution (FCR)
A metric measuring the percentage of customer issues resolved during the first interaction without requiring follow-up contact.

Friction point
Any obstacle or difficulty in the customer journey that creates frustration or impedes progress toward a goal.

G

Gap analysis
The process of comparing the current state of the customer experience (e.g., performance metrics, customer perceptions) with the desired future state.

H

Holistic experience
An integrated approach to customer experience that considers all touchpoints and channels as interconnected parts of a unified journey.

I

Insight
Actionable understanding derived from customer data or feedback, used to inform experience design, product improvements, and decision-making.

Interaction analytics
The process of analyzing customer interactions across channels to extract insights about behavior, sentiment, and experience quality.

J

Journey mapping
The visualization of the complete customer journey—from initial awareness to post-purchase—to identify pain points, opportunities, and emotions at each stage.

K

Key Performance Indicator (KPI)
Quantifiable measures used to track the effectiveness of customer satisfaction and experience strategies (e.g., CSAT, NPS, CES).

L

Loyalty
A customer’s commitment to repeatedly purchase from and engage with a brand over time, often resulting from positive experiences, trust, and satisfaction.

M

Moment of truth
Any point of interaction where a customer forms an impression (positive or negative) about a brand.

Multichannel
The practice of providing customers with multiple independent channels (phone, email, chat, social media) to interact with a company.

Metrics dashboard
A tool for visualizing and tracking key CX and CSAT data in real time.

N

Net Promoter Score (NPS)
A loyalty metric that that measures customer loyalty by asking how likely they are to recommend a company to others.

O

Omnichannel
An integrated approach that provides a seamless, integrated, and consistent brand experience, whether the customer interacts online, on a mobile app, on social media, or in a physical store.

P

Pain point
A specific problem or frustration that customers experience during their journey with a product or service.

Passive (customer)
A customer who is satisfied but not enthusiastic or loyal enough to recommend the company.

Personalization
Tailoring experiences, communications, and offerings to individual customer preferences, behaviors, and needs.

Predictive analytics
Using historical data, statistical algorithms, and machine learning to predict future customer behavior and preferences.

Proactive support
Anticipating and addressing customer needs or issues before they become problems or before customers reach out.

Promoter
A highly satisfied and loyal customer who enthusiastically recommends a brand to others.

Q

Qualitative feedback
Open-ended, descriptive responses that provides insights into the "why" behind customer behavior.

Quality Assurance (QA)
The systematic process of monitoring and evaluating customer interactions to ensure they meet established service standards and expectations.

Quantitative feedback
Numerical data from surveys or metrics that quantify satisfaction or loyalty levels.

R

Real-time feedback
Collecting customer opinions and reactions immediately after an interaction or experience occurs.

Response time
The amount of time it takes for a company to reply to a customer inquiry or request.

Retention rate
The percentage of customers a company has retained over a given period..

Retention strategy
Planned initiatives and tactics designed to keep existing customers engaged and prevent churn.

S

Segmentation
Dividing customers into groups based on behavior, demographics, or satisfaction levels to tailor experiences.

Semantic analysis
A technique to analyze the text in customer feedback to understand the underlying meaning, intent, and emotion.

Sentiment analysis
The use of technology to identify and categorize emotions and opinions expressed in customer feedback and interactions.

Survey
A structured method of collecting customer opinions, experiences, and satisfaction levels through a set of questions.

Survey fatigue
The decline in response rates and quality due to overexposure to customer surveys.

T

Time to resolution
The average amount of time taken to resolve a customer issue or inquiry from initial contact to completion.

Touchpoint
Any point of contact between a customer and a company (e.g., website visit, support call, product use).

Touchpoint optimization
The process of improving individual customer interactions to enhance the overall experience.

Transactional survey
A short survey sent immediately after a specific customer interaction to assess satisfaction with that event.

U

User Experience (UX)
The overall experience a person has when using a product or service, focusing on usability and satisfaction.

V

Voice of the Customer (VoC)
An ongoing process of gathering, analyzing, and acting on customer feedback (opinions, sentiments, needs) about their experiences with a product or service.

W

Word of Mouth (WOM)
The organic, informal communication between customers about their experiences and opinions regarding a brand, product, or service.

X

Experience Metrics
Quantitative measures (e.g., CSAT, CES, NPS) used to assess the quality and impact of customer experiences.

Bookmark this page and let it be your quick-reference guide as you enhance customer relationships, elevate satisfaction, and create exceptional experiences.