What is customer satisfaction and why is it important?
Customer satisfaction is the measure of customer response regarding a product or service of a brand or concerning the overall shopping and use experience. This indicator helps to better understand customer needs and improve the brand’s products, services and support.
Customer satisfaction is a fundamental indicator of marketing, because customer satisfaction is a guarantee for the future for the brand. Here are some of the reasons for its importance:
Satisfied customers generate word of mouth recommendations. According to Temkin, 77% of consumers would recommend a business to a friend after having had a positive experience. And that generates a source of future customers for the brand with zero acquisition cost.
Satisfied customers are leaving positive reviews. It is very common for users to search online for the products and services they are considering purchasing and seek the opinions of other people who have used them. If you have a good customer satisfaction rating, chances are these potential customers will find positive reviews that will encourage them to convert.
Customer satisfaction is closely linked to loyalty. Satisfied customers buy your products over and over again and are also more open to upselling or cross-selling. Ultimately, this increases the customer’s lifetime value and generates a steady stream of income, which is great news for the future of your business.
Leaving your customers satisfied sets you apart from the crowd. skill. Today, there are many products and services to meet almost every consumer need, and advertising subjects them to constant bombardment. Therefore, it’s normal for customers to turn to brands that offer them something extra in the form of special treatment and don’t make them feel like they’re just another number.
10 ways to measure customer satisfaction
You already know that in marketing it is essential to be able to measure results to evaluate what we are doing and modify plans if necessary. And as we just explained, one of the most important metrics for measuring the success of our strategies is customer satisfaction.
But at the same time, “customer satisfaction” is a somewhat abstract concept, and it’s not that easy to narrow down to a number. For this reason, we’re going to look at a dozen ways to quantify customer satisfaction, so you can pick the ones that best match your brand.
1) Net promoter score o NPS
the Promoter net score is a metric that measures the loyalty of a company’s customers based on the likelihood of them recommending your products or services.
To calculate it, we directly ask customers how likely they are to recommend the brand to a family member or friend. The answer is shown on a scale from 0 (very unlikely) to 10 (I would definitely recommend it).
Based on the score shown, customers are classified into detractors (0-6), passive (7-8) and promoters (9-10).
Finally, to calculate the NPS, we convert the number of promoters and detractors to percentages and subtract the number of detractors from the number of promoters.
2) Customer effort score o CES
The Customer Effort Score or the Customer Effort Metrics Scale how easy it is to solve problems around a product or service. To calculate it, customers are asked to rate the assistance received from the brand with a number between 1 and 10.
This metric is considered important because good customer service is essential for building loyalty and generating recommendations. According to a study published in Harvard Business Review, 94% of customers who put little effort into solving their problems were more interested in buying from the same company again.
3) Conversion rate
The conversion rate allows us to indirectly measure customer satisfaction, as it tells us whether our website is functioning properly and whether it is meeting customer expectations. If that number goes down, we need to investigate potential design or customer experience issues.
4) Index of complaints / complaints
To improve customer satisfaction, it is imperative know what mistakes you are making and be able to correct them. This is why the rate of complaints and claims is very high.
To more precisely measure what is happening, we can distinguish between a complaint (a specific dissatisfaction that the customer makes to reach the brand) and a complaint (a customer who believes that damage or harm has been caused to him and wishes obtain compensation from the trademark).
To calculate this index, we will take the number of complaints and complaints during a given period and divide it by the total number of customers. The ideal is to establish a periodic check (for example, monthly or quarterly) to see its evolution and if the claims are being resolved.
5) Customer satisfaction score (CSAT)
This metric is one of the most direct and easy ways to measure customer satisfactionbecause we are simply asking you to rate your level of satisfaction on a scale of 1 to 5 or 1 to 10.
This is a very easy question to implement in the different phases of the customer process and it gives us a general idea of what is going on. We can also combine it with other questions to get multiple metrics with a single survey, for example the Net Promoter Score.
6) Social media metrics
Social networks are a place where users share their experiences around brands, which is why they are very useful for measuring customer satisfaction.
Of course, you should take into account all the comments that users leave on the brand’s channels, whether positive or negative. But it is also advisable to go further and use social listening strategies to monitor the conversation on other sitesFor example, search for keywords related to your brand on Twitter.
7) Customer retention rate
Satisfied customers are loyal customers. Therefore, measuring the number of brand loyal customers gives us a good indication of customer satisfaction.
As with other metrics, it’s best to periodically measure the number of new customers and customers who have left to compare this number over time and spot potential problems.
8) New clients obtained by referral
One of the best signs that customers are happy with your brand is when they recommend it to their acquaintances. The Net Promoter Score, which we saw earlier, allows us to measure the intention of users to recommend us. But to translate this metric into reality, it is better to measure directly the effect of recommendations in the form of new customers.
Tracking this metric can be done by asking new customers how they learned about your brand or through strategies such as “invite a friend and get $ XX off”, which encourage referrals and let you know which users have. been invited by others. .
9) Inquiry after discussion
Customer support chats are a typical place to measure how effectively we have resolved an issue. Most often, after the conversation with the customer service agent or the chatbot, we say goodbye by asking the user to rate the interaction from 1 to 10. If the score is low, it’s time to revisit our strategy to improve customer satisfaction.
10) Exit interview
Exit interviews are a great opportunity to uncover the causes of customer churn and thus be able to prevent them from improving retention.
Ideally, to avoid generating more friction, the exit interview should be limited to one or a few questions, for example, what is the main reason the user decided to unsubscribe and if there was something we could have done to avoid it. And of course, you should periodically review the most common responses and attempt to resolve any issues found.