How To Measure Customer Satisfaction
28 July 2020
9 mins read
Customer satisfaction can be best understood in terms of customer experience. It is the total sum of a customer’s perceptions, interactions, and thoughts about a brand, product or service. Therefore, if customers generally have positive experiences with a brand, they can be considered satisfied.
Given the wealth of options dissatisfied customers have at their disposal, they will have little or no problem choosing to patronize your competition in the event of a bad experience with you. Customer satisfaction has an impact on the revenue and growth of a business. It is the foundation of business success.
Why measuring customer satisfaction is essential.
Happy customers form the foundation of any successful business because their satisfaction leads to repeat purchases, brand loyalty, and positive testimonials. If you don’t measure customer satisfaction, you will not be able to identify unhappy customers and solve their challenges.
A survey that has over time been attributed to 1st Financial Training Services states that 96% of unhappy customers don’t complain, and 91% of them will leave and never come back. Whereas, satisfied customers will repeatedly patronize you and recommend you to their network. This is the reason why businesses must always keep an eye on the experiences of their customers, especially in this digital age where a single negative review online can cause irreparable havoc to a brand.
Businesses that continuously seek customer feedback and proactively measure it tend to grow faster because from listening to their customers, they develop models of customer-centricity that help them iterate and innovate their services, moving them upward and forward in the market.
In the next few bullet points, we will explore all the various tools that have proven effective for measuring customer satisfaction and leverage the insights for business growth. These tools can be deployed to achieve any of your set business goals.
Net Promoter Score (NPS) survey.
NPS is one of the most popular survey strategies for determining customer satisfaction and loyalty to a brand. It measures the likelihood of customers recommending your business to other people.
It is different from other survey methods in that it measures a customer’s overall sentiment about a brand as opposed to their perception after a single purchase or interaction with the brand. It merely seeks to “find out how likely you are to recommend us to a friend?”.
On an NPS scale, customers fall into three categories based on the answer they provide to this question - How likely are you to recommend to a colleague or friend?
Detractors - Customers who respond between 0 and 6. You stand the risk of losing these customers, and they are also likely to impede the growth of your business through their negative reviews.
Passives - Customers who respond between 7 and 8. These set of customers are satisfied with your business but are not raving fans and can quickly leave you for a competitor. At this stage, it is still easy to convert them into being loyal customers.
Promoters - Customers who respond between 9 and 10. These are your loyal customers who are very likely to help in growing your business through referrals.
To determine your overall Net Promoter Score, subtract the percent of Detractors from the percent of Promoters. A positive NPS (over 0) is considered a good score while a score of over 50 is deemed to be excellent.
Mention, a social insights company, used NPS to cut their churn rate (the rate at which customers discontinue service within a specific period) in half within two months. They did this by sending out custom emails and offers to customers depending on their level of satisfaction. Promoters were offered discounted upgrades to their product, passives received an extended free trial period, and detractors were thanked for their honesty and asked how things could be improved.
By adding NPS questions to your survey, you can easily and quickly measure how happy customers are with you. Tracking this will also give you a clear idea of the challenges your business is facing and how you can improve things.
Post-purchase or post-service surveys are done to get feedback on a particular experience that a customer just received. This measures customer’s satisfaction with the service or product purchased, as well as also the delivery or onboarding experience.
Including a post-purchase survey right after customers make a purchase is a quick and straightforward way to learn how you can always improve their buying experience. It provides insight into understanding if customers feel they received value for the time and money spent on your business.
A post-purchase survey can be conducted in many ways. It can be sent in an email, via SMS, a physical form in your store, in-app, or a form embedded on your website – asking customers to answer a few questions like;
- Did the overall customer experience meet your expectations?
- Are you satisfied with the products in your order?
- Did you find all the items you were looking for?
This type of survey is mostly used by e-commerce stores which typically experience an average of 69.5% online shopping cart abandonment rate. To fix user experience issues that site visitors may have encountered while shopping on their website, they conduct surveys to ask shoppers who made successful purchases about any problem they may have noticed while shopping.
Even if you’re doing well as a business, if you don’t listen to your customers and give them what they want, in the long run, you are shooting yourself in the foot. Use the power of post-purchase surveys to gain knowledge and insights about your customers, get high-quality user-generated content, learn their language and get the most out of them in the future.
Product or service deployment survey.
If you are thinking of adding a new product or service to your company’s existing offering, this type of survey is intended to gauge customers’ impression or anticipation of a new offering before it is launched. A digital product team that just launched a new app can send out surveys to a select group of users to test out their perception.
Depending on the feedback, you can take advantage of the situation to expand your customer base by offering incentives to new customers that they refer to your business.
Product or service development surveys help to minimize risks and maximize revenue when entering new or existing markets by providing actionable data rather than making decisions driven by thoughts or feelings on what is or isn’t likely to work.
This survey also works for the idea of Concept Testing whereby a brand intends to refine an already existing aspect of their business and evaluate customers’ response to the concept before introducing or implementing the changes in the market. It could be a new brand identity, a landing page, a campaign, or a new pricing structure.
85% of Product Managers have heartily agreed that this procedure is vital to the success of their work. Introducing this early into the product development process helps to build a product that will work successfully, long before investing in a product launch.
Customer satisfaction (CSAT) survey.
CSAT surveys are conducted to measure customers’ level of satisfaction with a business, its products or its services. It allows businesses to eliminate pain points and improve customer loyalty.
As a business owner, you may not always know what it is that brings your customers back to you, but CSAT surveys are an excellent means to dive into understanding what customers see deeply or value in your business.
The survey typically features questions like;
- How would you rate your satisfaction with our product or service?
- Were you satisfied with our product or service?
- On a scale of 1-10, how satisfied are you with our service?
Customer Satisfaction (CSAT) is calculated by dividing all the positive responses of a survey by the total number of reactions and multiplying it by 100.
A usability survey is typically used by online businesses to get feedback on their website or mobile and application to create better user experiences for the customers. It seeks to understand why users did or didn’t carry out a particular action, what their experience was navigating the site, what they think of the aesthetics and interface.
The answers gotten from usability surveys guide businesses to improve the user interfaces (UI) and user experiences (UX) of their websites or apps by getting to the root of any possible issues users may experience.
Beautifully designed websites or apps to retain customers and attract new users. 87% of respondents in a survey conducted to understand the future of design in Start-ups believed that design is essential and that it leads to higher consumer engagement, more sales, and improved retention.
Also, when websites and mobile apps are appropriately optimized for all kinds of devices, customers could use to access them, it makes their browsing and shopping experience seamless and enjoyable.
Happy customers are returning customers, and in the long run, returning customers will always keep your business running. When customers are satisfied, they will tell their friends about your business, and they also will keep coming back.
Surveys are the most effective way to gauge customer satisfaction. They give useful information that enables you to deliver value for your customers time and time again by making adjustments to your products or services and offering better solutions.
Carrying out customer surveys also let your customers know that you care about them, and with that, they will appreciate you for respecting their input.
Services like DataBeaver simplify the process of data collection and analysis for businesses. With DataBeaver, you have access to a wide variety of survey and research solutions to help you create useful customer satisfaction surveys which provide detailed results and stats.
To get started with your market research sign up or sign in to DataBeaver and begin to receive valuable insight that can lead to growth and increased revenue for your business.