Customer Experience Blog

Learn To Measure Customer Satisfaction Correctly

By Akshay Karwal

measure customer satisfaction correctly

There may be scores of reasons behind the success or failure of a business, customer satisfaction being one of them, and perhaps the most important one at that.

If you aren’t able to satisfy your customer with your services or your product isn’t satisfactory enough, your brand isn’t worth staying on in the market, it’s that simple!

Which is why brands today do measure their Customer Satisfaction Score.

In more specific terms, Customer Satisfaction Score or CSAT is simply a percentage of customers whose experience meets or surpasses their satisfaction goals.

That means, if your company has scored 80% CSAT, it means, 80% of your respondents are satisfied with your products and/or services.

It may be good as long as it is an improvement over last year’s growth. However, what does the rest of the 20% say?

Then again, as far as the 80% of the happy customers are concerned, you still need to find out what makes them tick!

They may have given you preferential rating for one reason while you may still be lagging behind in some other areas.

It is up to you to find out where your problem areas are, so that, going forward, you can be sure to serve your customers better and ensure higher customer satisfaction and faster business growth.

Before we try to grasp the right way to measure customer satisfaction, let us first understand why this is necessary.

Why Customer Satisfaction is important

1. It is easier to turn satisfied customers into loyal customers

Loyal customers are worth far more than their first purchase. If they stick by you, be sure they bring their family and friends along and they tend to forgive you for your mistakes. Make sure you show them your gratitude!

Also , don’t take loyal customers for granted. That attitude can definitely push them away. In a world of consumerism, there are always far too many competitors for you to be callous.

Cut the slack and make sure both your new and old customers don’t lose faith in you. Give them added reason to choose you over your competitors.

2. Customer Satisfaction helps in revenue growth

It all boils down to money! It’s no rocket science that customer satisfaction is also reflected in your revenue. 

If your brand can satisfy and garner more good faith, you retain more customers and in turn make more revenue.

If you can continue to make your customers happy, they will not even care to look at your rivals and their offers.

3. Best way to beat your competition

Instead of focusing on your competition, focus on customer satisfaction. This is the right and easiest way to compete. This will steer you ahead of your competition, without you tarnishing your image in dirty rivalry.

Customer Satisfaction will help you in brand planning in brand positioning. A satisfied customer will happily promote your brand on social media platforms and boost your posts and pages and help you position them wherever you want. This will help you effectively market your brand in the both online and offline channels (through word of mouth and otherwise).

Frame the right set of questions

Now, we move over to framing the right set of questions to gauge customer satisfaction. Getting the right set of questions may not be an easy a task as we may think.

Asking too many questions may reduce the attention span of the customers taking the survey, leading to incomplete surveys. Too few questions may leave the survey an exercise in futility.

The trick is to ask the right questions in as few numbers as possible.

It is believed by most market gurus that around 5-8 questions is the optimum number for such a survey. It is best to focus on the goals of the survey. For example, if you want to find out if your customers like the design and quality of clothes, don’t get too much into the customer service part of your business in your questionnaire.

Customer Loyalty & Net Promoter Score

One of the key measures of customer satisfaction is measuring customer loyalty. And there is no better way to do that than by measuring the brand or the company’s Net Promoter Score.

Net Promoter Score or NPS is nothing but a customer loyalty score, a rating given in an absolute number, ranging from -100 to 100, ranking a company for its customers’ willingness to recommend its products or services to others.

A score or index that’s solely indicative of a company’s customer satisfaction & customer loyalty, and should not be confused with how much profit or even revenue a company would make.

This score will guide you in the right direction in which you should take your company. It will certainly not boost your business, but will tell you if you are on the right track or if there is some need for concern or if you are completely off the game.

How is Net Promoter Score calculated?

NPS is based on one simple question: “On a scale of 1-10, how likely are you to recommend our product/service to your friends and family?”

Customers who give you a rating of 6/10 or below are Detractors. Customers who rate you 7 or 8 are Passives. Customers who rate you a 9 or 10 are Promoters.

To calculate your Net Promoter Score, subtract the percentage of Detractors from the percentage of Promoters.

For instance, subtract 30% (Detractors) from 50% (Promoters) to get which equals 20. Since a Net Promoter Score is always shown as just an integer and not a percentage, your NPS is simply 20.

But how do you know if your score is good or bad. We've answered this very question here, What is a good Net Promoter Score?

Follow-up surveys

Net Promoter Score indeed helps you understand if you are on the right track, but a set of some follow-up questions will help you in making some informed choices and changes.

These questions must primarily be open ended, so that they can explain why they didn’t rate you 9 or 10, and secondly have room for proposals for future changes.

Apart from Net Promoter Score, the overall satisfaction rating, followed by more open-ended questions on the customers’ response makes your data actionable. This tells you what you need to do to grow as a business.

Interesting reading : Net Promoter Score vs CSAT Score - What should you use for your business? 

Customer Satisfaction best practices

Ask questions specific to your industry

For overall satisfaction, you need to ask questions that are specific to the service you provide and its related areas.

For example, when it comes to restaurants, timeliness, food quality and ambiance are important, specific points; whereas for hospitals and hotels, cleanliness plays an important role.

You need to ask questions that are likely to impact your customers the most, the ones that are specific and to the point. This way, the answers you get will be to-the-point and you won’t lose customers’ attention while you try to get your customers to participate in your survey.

Use simple language in your surveys

Always avoid industry jargons and use layman language in your surveys. The survey is for your benefit, so don’t show off and make it easy for your customers.

If possible, try to include questions where your customers can rate you in comparison to your competitors.

Through your surveys find out if your company is easily approachable to your customers for any queries or complaints. It is a key point to ensure customer loyalty and customer satisfaction.
 

Topics: Net Promoter Score

Akshay Karwal

Written by Akshay Karwal