How to Measure Customer Satisfaction

When you are running a business, it is important to track customer satisfaction metrics. This will help you identify areas where your customers are happy and areas where improvement is needed. But what is customer satisfaction, and what metrics should you use when measuring customer satisfaction? Keep reading to find out!

What Is Customer Satisfaction?

Customer satisfaction is a term used in marketing to refer to how products or services supplied by a company meet or exceed customer expectations. A customer is satisfied when his or her experience with the product exceeds the expectations. Satisfied customers will likely return to make repeat purchases in the future, whereas dissatisfied customers are likely to take their business elsewhere.

Monitoring customer satisfaction is important for you to be able to adjust your activities in a way that will make your customers happier. In other words, customer satisfaction parameters can give you insights into services or features that improve the customer experience.

Standard methods for measuring customer satisfaction include:

Surveys

When creating surveys to investigate customer satisfaction, make questions about overall satisfaction first, then get to the details of why they are or they are not satisfied. To do so, it can be useful to create a box where they can explain and justify their level of satisfaction. Remember to keep the survey short and simple. Customers do not want to spend too much time answering questions, ask only relevant questions and give them the option to comment.

When sending surveys, make sure you contact a wide range of customers, consider also sending them to non customers or potential customers.

Polls

Make sure your customers have always the chance to give you feedback about their experience with your company. Use polls to measure their satisfaction after specific interactions. For instance, after they receive support from your customer care team, ask them to rate the service.

Interviews

Customer interviews are useful to get relevant insights about the customer experience. They are just an opportunity for you to know more about how your customers interact with your product and brand every day. Marketing research firms typically collect this data from a random sample of customers and then use statistical methods to extrapolate the findings to the larger population.

Businesses can also use social media platforms to track customer sentiment in real-time. Companies need to track customer satisfaction because it can significantly impact profitability.

Dissatisfied customers may not only take their business elsewhere but also spread negative word-of-mouth, which can negatively impact a business's reputation. Satisfied customers are more likely to become brand ambassadors and play a role in attracting new customers.

Consequently, businesses should continuously strive to improve customer satisfaction levels. The bad news is that customer satisfaction is not easy to measure, but the good news is that we are here to help you. Keep reading to find out how to successfully measure your customer satisfaction.

What Types of Metrics Measure Customer Satisfaction?

There are a lot of different metrics that companies use to measure customer satisfactioon. Below, you will find the most common ones.

Net Promoter Score (NPS)

Net Promoter Score (NPS) is a metric that measures customer satisfaction and loyalty. It's based on the simple question, "How likely is it that you would recommend our product or service to a friend or colleague?"

The NPS is a valuable metric for measuring customer satisfaction for three main reasons:

NPS is objective

, meaning that the score is based on a customer's experience, not on opinion or speculation.

NPS is comparable

, meaning that the score can be compared across products, services, and industries.

NPS is actionable

, meaning that it can be used to identify areas where improvement is needed.

Responses are given on a scale of 0-10, and customers are grouped into three categories: Promoters (9-10) These are customers who love the product or service and will happily recommend it to others. Passives (7-8) These are satisfied customers but could be wooed by the competition. Detractors (0-6) These customers are unhappy with the product or service and are unlikely to recommend it to others.

To calculate your NPS score, take the percentage of promoters and subtract the percentage of detractors.

NPS = % Promoters - % Detractors

For example, if 60% of respondents are Promoters and 20% are Detractors, the NPS would be 40. There's no magic number for what constitutes a good NPS score, it varies depending on your industry and other factors. However, a score above 50 is generally considered excellent.

NPS can be a valuable metric for businesses because it provides insights into customer satisfaction and allows you to identify areas of improvement. For example, if you see that your NPS score is low, you can take steps to improve customer satisfaction.

If you are looking for ways to measure customer satisfaction, the Net Promoter Score is a great place to start. It's simple to calculate and can give you valuable insights into your customers' thoughts and experiences.

Customer Satisfaction Score (CSAT)

Another way to measure customer satisfaction is through the Customer Satisfaction Score (CSAT). CSAT is typically calculated by surveying customers and asking them to rate their level of satisfaction on a scale from very satisfied to very dissatisfied.To calculate the customer satisfaction score, ask customers how satisfied they are with the product or service on a scale of 1 to 5 (1 being very unsatisfied, 5 being very satisfied). Then, take the average of all the ratings to get the CSAT score.For example, if you surveyed ten customers and five of them rated the product as a 4 and five as 5, then the CSAT score would be 4.5.Businesses can then use these results to identify areas where they need to improve to meet customer needs better. High CSAT scores can also be used as a marketing tool to show potential customers that the business takes customer satisfaction seriously.In today's competitive landscape, ensuring a high level of customer satisfaction is more important than ever- and CSAT is one way to help businesses accomplish this goal.

Customer Effort Score (CES)

The customer effort score (CES) is a metric that measures how much effort customers have to put into using a product or service. This metric can track customer effort over time or compare the ease of use between different products or services.To do this, customers are asked to rate their level of satisfaction on a scale from "Very Difficult" to "Very Easy". CES is important because it can help businesses identify areas where they need to make changes to reduce customer effort.To calculate a CES score, ask customers how much effort they put on a scale of 1-5, with 1 being very low effort and 5 being very high effort. Once you have this information, you can start to look for patterns and identify areas where you can improve the customer experience. The CES score is the average of all customer responses.The CES metric is an excellent way to measure customer satisfaction because it captures how easy or difficult it is for customers to use your product or service. If customers put a lot of effort into using your product, they will probably be less satisfied.When using CES to measure customer satisfaction, it is important to ask customers about their specific experiences and not make general statements about the product or service. For example, instead of asking customers how easy it is to use your product, ask them how much effort they had to put in to complete a specific activity.CES is an excellent metric to use when measuring customer satisfaction because it can be used to compare the ease of use of different products or services, therefore helping your company identify areas where improvement is needed.

Customer Service Satisfaction (CSS)

Excellent customer service is the lifeblood of any business. You could have the best product globally, but if your customer service is not able to support the customers, you will hardly succeed in the market.The good news is that you can take some simple steps to ensure that your customers are always satisfied. You need to:

Have a system in place for addressing customer support. Layerise could be the right solution to offer your customers a personalized user experience with an excellent virtual assistant that supports them throughout the journey.

Train your employees to be friendly and helpful.

Make sure that your employees are knowledgeable about your products and services.

By following these simple tips, you can keep your customers coming back for more.CSS is essential because it tells you how likely customers are to be satisfied with your company's customer service. A high CSS means that customers are happy with the service they're getting, and they are likely to come back and use your company again. On the other hand, a low CSS indicates that customers are unhappy with the service they're receiving, and they're less likely to use your company in the future.There are many ways to improve your CSS, but one of the most important things you can do is make sure that your customer service representatives are properly trained. If your reps are knowledgeable and efficient, it will go a long way towards making your customers happy.Another essential thing to remember is that customer service satisfaction does not just happen overnight. It takes time and effort to build up a good reputation for customer service. So, if you do not see results right away, do not give up - keep working at it, and you'll eventually see your CSS improve.

Conclusion

It is essential to know which metrics to use when measuring customer satisfaction. Different businesses will have different goals, so it's necessary to tailor the customer satisfaction metric accordingly.The metrics we presented are the most popular options. Each of these offers different insights into how customers feel about your business. If you're looking for a more holistic view of customer satisfaction, try using the Customer Service Satisfaction (CSS) metric.Whichever metric you choose, make sure you're regularly collecting data and reviewing it to see if there are areas where your business can improve. Have you measured your customer's satisfaction? What type of metrics do you use?Layerise can help you in measuring your customers' satisfaction. The Chat feature enables you to support your customers and track satisfaction without extra work. By using Layerise you will not only be able to monitor satisfaction, you will also see the metrics skyrocketing thanks to the Virtual Assistant!

Book a demo with us to learn more about how Layerise can help your business.