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How to Measure Customer Satisfaction

Customer Satisfaction

Savvy company executives improve customer satisfaction by monitoring several mission-critical key performance metrics (KPIs).

 

Every day, businesses lose valued, devoted clients. Top-performing companies use customer satisfaction data to uncover hidden chances for development.

 

A recent HubSpot Research survey shows that 80 percent of consumers will quit preferring your product over your competitor’s after one negative customer service encounter. Furthermore, 86% of consumers are prepared to spend extra for a superior customer experience.

 

You can keep customers loyal by tracking and measuring essential customer satisfaction KPIs and removing service-related pain points.

 

What are the Advantages of Tracking Customer Satisfaction?

Customer retention is an essential indicator for SaaS firms. Acquiring a new business is far more expensive and time-consuming than expanding on an existing partnership. Customer loyalty is critical to maintaining a long and profitable commercial relationship.

 

Client pleasure is an essential aspect in determining customer loyalty. Given the abundance of alternatives available to disappointed consumers, they will have no qualms about transferring their business elsewhere after a terrible experience. It is critical to identify how to gauge customer happiness since it may serve as both an indicator of growth and a warning sign of churn.

 

Customer satisfaction is a broad notion that incorporates many distinct elements. It’s not as simple as gauging sales or growth, but it impacts both. This article will highlight measuring customer happiness and utilizing that knowledge to benefit your organization.

 

6 Ways to Measure Customer Satisfaction

 

1. Social Media Metrics:

Customers are becoming more outspoken on social media, showcasing their purchases while criticizing the firms. Social media is a double-edged sword. It may be used to decipher what customers are saying about your product. The analytics dashboard is available on the majority of social media networks. Please pay attention to your audience and their suggestions. Customer support teams may collect this information and develop tactics to increase satisfaction/engagement levels for a more robust social presence.

 

Social media mentions show how your consumers interpret your company’s marketing material. When you launch a new campaign, your followers have a direct avenue to contribute public comments. These remarks are noteworthy because they center on your brand’s messaging, which is difficult to inquire about in a follow-up survey or live chat transcript.

 

You may also use social media as a technique for gathering input. You may gauge consumer happiness by posting a poll on Twitter or Instagram. This channel can be free and provide direct access to your consumer base.

 

2. Customer Effort Score:

The customer effort score, or CES, is a consumer-centric way of determining the quality of customer service. The consumer is asked how much effort they had to put in to contact customer support to address a problem. Alternatively, the organization is asked if it has made it easier for the customer to communicate with the customer care team. 1 to 5 is the range of the scale, with 1 indicating more minor difficulties and 5 indicating a severe problem.

 

The CES is an excellent criterion to use in the future to classify clients so that your staff may focus on disgruntled customers. Most organizations include a text box below the customer effort survey so consumers can expound on the issue, allowing the organization to improve on those fronts explicitly.

 

However, it should be noted that none of these polls give a static idea. The surveys together can produce a more accurate picture than any one element.

 

Consumer Effort Score (CES) is similar, except instead of asking the customer how happy they were, ask them to rate their experience.

You’re still assessing happiness, but now you’re measuring user effort with the idea that the more accessible a job is to do, the better the experience. As it turns out, one of the most effective methods to lessen dissatisfaction and disloyalty is to make an experience as easy as possible.

 

3. Customer Satisfaction Score: 

The CSAT score, or customer satisfaction score, is a universal statistic used to assess a customer’s most recent engagement with the customer care staff. The parameter goes from 1 to 5, with the lowest number indicating severely dissatisfied and the highest number indicating highly satisfied—the more positive feedback, the higher the CSAT score.

 

Because it does not show any critical variables from the contact, CSAT is a fundamental approach to analyzing your service quality. Customers frequently select either option, resulting in mediocre service. CSAT should not be abandoned since it remains an essential indication. In addition, various procedures must be used.

 

Customer Satisfaction Rating (CSR) or Customer Satisfaction Score (CSAT) assesses how happy or dissatisfied consumers are with your product, services, or customer success program on an average basis. Your customer satisfaction score may be computed by adding the sum of all scores and dividing the amount by the number of responses, which is usually asked on a scale of 1-3, 1-5, or 1-7.

 

Customer happiness is typically measured using the Customer Satisfaction Score (CSAT). You ask your customers to score their satisfaction on a scale of one to ten. There is no general agreement on which scale is ideal for your survey scale, which might be 1 – 3, 1 – 5, 1 – 7, or 1 – 10.

 

4. Web Analytics:

Analytics is a data-driven measure that functions without the customer’s direct engagement. Web analytics monitors your website traffic, reads the sales funnel, analyses consumer behavior, and forecasts future conversions. Built-in attribution models provide deeper information into touchpoints, the most often visited FAQs, and more. If collected and applied wisely, these insights can result in a successful customer service strategy that can be a critical differentiator in the modern market.

 

5. Net Promoter Score (NPS):

According to a 2020 survey, 64% of customers are more inclined to refer a business to friends or family if it provides more accessible experiences and communications. This is where the net promoter score, or NPS, comes into play.

 

NPS was created to fill in the gaps that CSAT could not. NPS measures how likely customers are to refer a particular product or service to their friends. 1 to 10 is the scale range, with 1 denoting “not at all likely” and 10 denoting “very likely.”

 

The NPS is calculated using an emotionally charged question. As a result, the response rate is higher, and dissatisfied clients seldom miss an opportunity to respond to these surveys. Use this chance to keep specific consumers and make an impression on them by providing exceptional customer service.

 

6. Surveys to Gather Customer Feedback:

Surveys are an essential tool for assessing the quality of customer service. Instead of self-evaluating, ask your clients what they think of your service. Launch multiple surveys through various routes, primarily after the service is given.

 

Importance of Measuring Customer Satisfaction in 2022

Consider the process’s benefits to appreciate how vital customer satisfaction assessment is. As the ideas below demonstrate, various aspects are at play while gauging customer happiness in 2022 to give your business the push it needs.

Customer Satisfaction

1. Lowers Churn

When we hear about customer attrition, we sometimes assume that pricing is a significant influence, although it is not.

 

Many brands charge more excellent rates for their products/services than the industry norm, but they nonetheless have a large and devoted consumer base.

 

Consider this: why would clients quit if your services are of good quality, user experience is excellent, and customer service is terrific and responsive?

If your consumers are dissatisfied with their experience with you, no matter how low your pricing is,

 

They are inclined to give their business to your competitors because of your brand.

 

2. Tracking Customer Service Improves Customer Experience

Many causes might cause a consumer to be dissatisfied and unhappy, including obtaining a lousy product, experiencing an issue with your software, having unpleasant contact with your customer service person, and many others.

 

Regularly assessing customer happiness may spot problems early and improve the user experience before clients abandon your brand.

 

You may also determine whether or not the client retention methods you adopted to improve the customer experience are effective. You can analyze the entire process and revamp the plan if there are no significant gains.

 

For example, if your consumers are unhappy with the checkout process, you may gather their in-context feedback and make changes to address their concerns.

 

However, if your cart abandonment rate remains high, you must alter your strategy and identify the fundamental reason for the problem. For example, if clients are dissatisfied with your payment gateway alternatives, you will need to improve them.

 

3. Repeat Business from Satisfied Customers

As a pleased consumer, would you connect with a firm again and purchase its services? Customers who had a good experience and required the services/products are more likely to return to a company.

As a result, you can see how closely linked and dependent a company’s success is on happy consumers.

 

4. Competitive Advantage

Every firm is slaying its marketing game, striving to top revenues with fresh ideas and goods and enhancing customer experience in today’s harsh marketplace.

 

Aside from everything else discussed above, client satisfaction may help your company stand out.

 

As previously said, satisfied consumers bring repeat business. In addition, they are more loyal to your brand than new or dissatisfied customers.

 

If you play your cards well, you won’t have to worry about competition and can provide excellent consumer experiences. Because if they are happy, they will not leave your company.

 

5. Negative Experience Has an Effect on Your Brand Image

When understanding how to assess customer happiness, it’s just as important to know about the negative as it is about positive client experiences.

 

A hostile encounter leaves a terrible taste in the customer’s mouth, and poor word of mouth begins to spread. It taints the brand reputation you’ve worked hard to build over the years.

 

Poor online word of mouth is much more lethal and damaging to a business since it spreads like wildfire.

 

A few negative social media reviews can sway many potential clients who would no longer do business with you since they have preconceived notions about your brand.

 

So, rather than minimizing the harm later, why not avoid it entirely? This is when tracking client happiness comes in handy.

Amazon, for example, allegedly charged over $7000 for a $88 order of toilet paper rolls. The consumer contacted customer service, but the reimbursement was refused since the firm claimed the shipment was delivered securely and undamaged.

The customer was not heard until they contacted a local news station and reported their experience. After a long and difficult two months, Amazon reimbursed the money incorrectly charged.

Such incidents significantly impact any firm’s reputation and influence potential clients’ perceptions of your organization.

 

6. Customers Who are Dissatisfied Incur Both Direct and Indirect Costs.

Customer/user happiness is essential not just for customers but also for the success of a business. A single unsatisfied client may have a significant financial impact on a company, and as the number of unhappy consumers grows, a company’s worst nightmare becomes a reality.

 

Customer discontent incurs direct and indirect business expenses, which is less than ideal. Customers dissatisfied with your products or services will stop doing business with you, reducing your sales and income.

 

In this case, you not only lost consumers, but you also lost them to rivals, resulting in indirect expenses.

Furthermore, the resources you spent gaining those clients would be wasted if the costs were not justified.

Measuring user happiness is unique and proactive in catching about-to-churn clients and retaining them. You may also investigate the reason for consumer unhappiness, reallocate your resources, and adjust your plans accordingly.

 

Taking Customer Satisfaction into Account

Customers may buy your goods and tell you how to keep them returning. When innovating and growing your business, understanding what’s going right and wrong during the buyer experience is crucial. Measuring customer happiness will assist your firm in meeting its customers’ demands, and we hope this advice will help you incorporate more consumer views into your business plan.

 

How Can Survey2Connect help?  

S2C’s customer experience solutions cater to all your customer experience requirements and help you leverage your customer data to improve your customer satisfaction rate.

 

Survey2Connect is used by some of the world’s most trusted companies and has been successful in managing their customer experience efficiently over the past years.  

 

Survey2Connect provides a one-stop solution for all your experience management needs. With S2C you find the right answers to take timely actions. Get in touch with us for a demo. 

 


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