Significance of Customer Satisfaction and How To Measure It

customer satisfaction

The quantity of consumers you have determines the success of your firm. However, simply growing the number of consumers will not achieve your goal; you must also treat them in such a way that the new clients stay with you for a long time. Organizations must focus on delivering an optimum customer experience in order to ensure their customers are satisfied. 

Customers are more likely to be prioritized in growing businesses than in organizations with stable or declining sales. Customers that have a great experience in using a product or service of an organization prove to generate more revenue in the long term, as they help garner more customers by word of mouth.

Keeping your current clients pleased is also helpful for business in the long run. According to studies, retaining existing customers is much more economically viable than acquiring new ones.

Why Measure Customer Satisfaction

Customer satisfaction data may assist you identify satisfied and dissatisfied consumers, as well as the reasons for their satisfaction or dissatisfaction. Measuring customer satisfaction at each touchpoint is an important step in determining your company’s strengths and shortcomings so that you may capitalise on the strengths while improving the weaknesses to improve customer experience.

Customers not only repurchase from your business when you evaluate Customer Satisfaction, seek to improve it, and are able to give a wonderful Customer Experience, but they also attract new customers with their favourable evaluations and word-of-mouth referrals.

As a result, organizations must strive to improve Customer Satisfaction and establish a long-term relationship with customers. They must ensure that they have a positive customer experience as a result of this. A positive customer experience has the potential to boost your company’s profits significantly.

After all, knowing how to measure satisfaction will help you enhance it. It’s impossible to know whether you need to improve it or stick with your current strategy to maintain the same level of client satisfaction if you don’t measure it. There are various ways using online survey tools with which customer satisfaction can be measured.

Ways to Measure Customer Satisfaction

NPS

NPS is one of the most extensively utilised metrics that help to discover if your customers are promoters or detractors. It entails asking a customer two questions.

“How likely are you to tell a friend or colleague about us?”

Respondents can choose from an 11-point scale ranging from “very unlikely” to “extremely likely” to answer this question. “Why did you give us that score?”

This is an optional question, although it is strongly suggested that you include it in your NPS surveys.

Promoters are the ones who score a 9 or 10 while people scoring between 0 to 5 are detractors.

It can garner valuable insights regarding what frustrates or delights customers at the place where the survey is installed.

The overall NPS score is then calculated as a difference between the percentage of promoters or detractors.

CSAT

The Customer Satisfaction Score (CSAT) is used to determine the percentage of consumers that are satisfied and happy with your service.

A simple question in a CSAT survey could be, “How would you rank your overall satisfaction in utilizing our products/services?”

It’s worth noting that, unlike NPS, there isn’t a regular CSAT question. Depending on the survey you’re generating, you can change the actual question.

Customers are typically asked to respond to the CSAT question on a scale of 1 to 5. In certain circumstances, the five-point scale includes choices like very dissatisfied, dissatisfied, neutral, satisfied, and very satisfied.

It determines if your products and services meet or exceed the expectations of your customers. A CSAT survey simply asks customers to score their overall experience with a product, service, interaction, or anything else on a scale of 1 to 5, and then to explain why they gave that rating.

With the help of various enterprise survey software, customer satisfaction can be measured by organizations across various channels to get a holistic view of customer experience.

CES

Customer Effort Score is a metric that measures the effort that a customer has to put in when interacting with any aspect of an organization e.g. customer service. It is measured on a numeric scale or also a likert scale. 

For example, to gauge the ease with which a customer issue was resolved, the organization can ask – how easy was it for you to solve the issue?

  1. Very easy
  2. Easy
  3. Moderate
  4. Difficult
  5. Very Difficult

CES Surveys can be implemented directly, online or via telephone using CATI Software.

Thus, measuring Customer Satisfaction using the above metrics will help organizations garner insightful feedback regarding the experience of the customers with the various products and services

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