How can you measure customer satisfaction?

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Contents

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Contents

Customer satisfaction measures the overall satisfaction the customer has with the business. A similar term, customer experience (CX), is a combination of customer perceptions, observations, interactions, and thoughts on how their expectations towards the organization and its services were met. As the subject of customer satisfaction is a rather multilateral and complex one, composed of various aspects and focus points, what are the most efficient methods of measuring key customer experience?

1. How companies measure customer satisfaction

To take into account the different dimensions of customer satisfaction, such as emotional, rational, or behavioral intentions, and to get a full picture of the experience your customers undergo, one must combine different customer satisfaction measurements from various sources. Here are the most common ways companies can measure customer satisfaction.

1.1. Customer Satisfaction Score (CSAT)

The simplest and the most direct, CSAT surveys are considered key business performance indicators when it comes to measuring customer satisfaction. Customer satisfaction surveys measure to what extent customers are satisfied with the services, products, business organization, or the handling of the customer service team.

 

The most common questions asked to determine the customer satisfaction score ask about the overall satisfaction with the service purchased and the handling of the process by the company from the beginning till the end. “How would you rate your experience with the representatives of the service?” “How satisfied are you with the product/service you purchased?” are questions you will typically see on a CSAT survey.

 

The survey response is typically stated in percentage and range within:

  • Very unsatisfied (0%)
  • Unsatisfied (20%)
  • Neutral (60%)
  • Satisfied (80%)
  • Very satisfied (100%)
How to measure customer satisfaction

1.2. Net Promoter Score (NPS)

Less general than CSAT, Net Promoter Score surveys focus on how likely it is for a customer to become a brand ambassador of a company and promote their products and services, as well as the overall brand later down the line. There is usually only one question to define the NPS score – “How likely are you to recommend the purchased product or service to your family member, friend, or colleague?” Depending on their answers, customers are put into three categories – promoters (scoring 9-10), passives (7-8), or detractors (0-6).

 

Promoters are customers who indicated very high customer satisfaction. They are enthusiastic about products and services they acquired, as well as about their customer journey as a whole, and are likely to recommend the company in the future. Passives are those who are overall satisfied, though rather unlikely to recommend the company experience to others. They do not have strong brand loyalty and can easily be converted by competitors. Consequently, detractors are unsatisfied customers who may potentially damage the company’s name, brand image, and future growth through spreading bad feedback.

1.3. Customer Effort Score (CES)

This third most popular customer satisfaction metric measures how much effort a customer has to put into using the company’s services or buying its products. CES surveys can include closed questions with answers given on a rating scale, True/False format questions, or open-ended questions. “The company made my purchase easy. (True/False)”, “The company’s representatives handled my issue in a timely manner (rating scale).”, “How easy was it to get the help you wanted?” – these are a few examples of questions you can find on a Customer Effort Score survey.

 

The more time and effort the customer has to put into navigating a company’s services and products, the bigger the chance they won’t return and search for similar offers elsewhere. Nevertheless, it is also worth noting that if the customer is willing to go through some difficulties just to do business with you, they have probably already developed strong customer loyalty towards the brand.

2. Measuring customer satisfaction and complaint handling

For the utmost business growth and brand recognition, put your customers, together with their views and feelings towards your business, at the heart of all operations. Think about the last time you used a service or bought a product yourself – the experience always feels more engaging and personal when the provider appreciates the time you spent using their service and listens to how you felt about it, doesn’t it?

As important as high customer satisfaction and excitement about customer experience received is, you also need to put high value on aspects your customers weren’t happy about – therefore on the negative feedback you got. Remember that listening and acknowledging complaints of a dissatisfied customer isn’t enough if you want to reverse the damage done and make them feel valued again – rather learn from their feedback and make feasible changes accordingly.

This is extremely important since as many as 51% of customers believe that most brands do not take action on feedback provided, according to a survey done by Microsoft. You should thus try to turn criticism into a new opportunity to demonstrate your company always has its customer’s back.

3. Customer satisfaction measurement: best practices

Thoroughly and regularly keeping track of the experience of your customers is one thing, yet doing it effectively and successfully for adequate business growth is another. One of the most important practices when trying to improve customer satisfaction is to collect all the customer satisfaction metrics mentioned above, in order to allow the customer service team to gather a complete picture of the customer experience with the business.

 

Make sure you include both qualitative and quantitative research to get a view of how your customers feel and to understand your customer satisfaction levels from every angle. This way you cover all aspects of customer experience formed while using your products and services – be it their preferences, habits, behaviors, feelings, and thoughts – and leverage this knowledge to decide which tools you need to use to increase customer satisfaction.

 

Once you’ve acquired a grasp of the levels of the satisfaction of your customer base and the expectations they hold towards your business, try not to just match their standards – rather boost your everyday operations to go beyond and surprise them. This is the best way to show your commitment to not only the customers and their expectations, but also the company’s mission and values. Impressing customers should be your customer service team’s priority and a key focus point in the company’s culture.

 

Last but not least, you should ensure that your customers can easily access your customer service team at any time, and that such help is available in various forms, through various platforms. Have a strong customer service strategy and different features in place, such as an active contact center, an email help desk, AR and video assistance, as well as 24/7 social media support and a live chat.

4. Conclusion

Customer service is a great and efficient tool for business growth and customer retention, especially when used wisely, with best practices in place. Satisfied customers are more willing to not only develop a deeper, stronger loyalty for the business but also spread the word about the excellent customer service they experienced and the help they obtained from others. Additionally, long-term customer satisfaction can ensure both customer loyalty to the organization’s products and services, as well as positive interest in and support for the brand as a whole.

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