Customer satisfaction

Customer satisfaction

Customer Satisfaction is a measure of how well your products and services live up to your customer's expectations. Tracking and improving it is shown to improve the performance of your business.

A lot of people think about customer happiness as a metric that you track for warm, fuzzy feelings.

Yet more people think it's purely something you do to avoid negative reviews on social media.

Even more people think it's just about being tokenistic with satisfaction surveys. Wrong!

That's super short sighted.

It is a metric that indicates how you're going to grow over the coming years.

Did you know that 95% of customers tell others about their bad experiences with a company?

Or that attracting a new customer is 6-7 times more expensive than retaining an existing one?

Or that loyal customers are worth up to 10x as much as their first purchase, making customer retention a huge priority for any growing company?

Our guide to improving your customer satisfaction covers all of this and more. Across more than 20 articles and four sections, we'll going to great depth about:

  • What customer satisfaction is and why it's important to growing your business.
  • How you can measure customer satisfaction including all of the questions you need to ask of yourself and your team.
  • How you should analyse the results and performance of your companies customer satisfaction efforts.
  • And when you've done that, how you can focus on improving the important customer satisfaction metrics that you'll learn about.

As well as that, we'll provide you with in depth stats, ready to use templates and more resources as the guide grows.

What is customer satisfaction and why is it important?

Customer satisfaction is a great health check for your business. More than just being something that you can talk about with your team and focus on improving, customer satisfaction will help you to grow the business.

In our first section we'll get an overview of what it is , define customer satisfaction and look at some basic ideas about how you should think about increasing customer happiness levels.

Unhappy customers cost businesses a lot of money. And to really frame this point, we'll work through what the benefits of satisfied customers are.

For example, did you know that careful management and improvement of customer satisfaction scores can give you a competitive advantage? Access to technology; cheaper products; better branding; are all pretty much universally achievable now. But creating a delightful and pleasing experience for customers is tough and requires constant work.

So the opportunity to increase customer satisfaction is a big one for you to differentiate yourself on.

And think about it, what difference does a negative or a positive testimonial from a customer on social media create for your brand? You already know this instinctively but creating a delightful and satisfying experience for your loyal customers can help create referrals and decrease the number of dissatisfied customers.

In fact, increasing customer satisfaction and going beyond the customers' expectations of your product or service can positively impact revenues by reducing customer churn and generate customer loyalty.

Another area where creating satisfied customers through a delightful experience can help is in lowering the marketing cost of acquisition. How? Well, the clif notes are: increase customer satisfaction > generate positive reviews and customer referrals on social media and elsewhere > spend less on marketing because your customers are doing it by word of mouth.

Everyone's a winner right? As if those metrics weren't good enough yet, that's not all, chuck!

Customer satisfaction can increase the lifetime value of customers for your business. Focusing on customer success (as tracked by a customer survey strategy incorporating popular methods like Net Promoter Score NPS surveys) will improve customer retention by increasing satisfaction levels.

And if you're not already sold on joining other businesses by committing to improve customer satisfaction in your company, then how about I pull it all together for you?

All of the above metrics will positively boost overall revenue. In fact, American express estimates that for every £100 spent at a company with poor customer service, a company with customer service will earn up to £117.

Those small wins really add up quickly.

How do you access them?

IMPROVE CUSTOMER SATISFACTION.

We'll help you about some important questions that you really need to ask yourself about customer satisfaction work before you head too far into implementing a Net Promoter Score survey (or NPS survey).

In a later section, we'll also take a look at all of the other things you can do to track customer satisfaction levels such as running CSAT surveys where you measure your businesses CSAT score; how to run a customer effort score or CES survey which can also be a great indicator of customer experience.

It's important that you have the mental models for understanding your own motivations.Why do you care about engaging customers? How will you approach bad feedback? What methods will you use to measure customer satisfaction? How will you improve it? And crucially, when you get that customer satisfaction score, what will it look like for your business?

And in the last guide article in our section on understanding customer satisfaction, we'll talk about how you can develop a strategy for customer satisfaction in your organisation. At the end of this section, you'll have the beginning of a strategy for improving CSAT and delivering great customer experiences in your organisation.

How do you measure customer satisfaction?

You may already have an idea about how to measure the strength of your customer’s loyalty or their happiness with the customer experience.

But we’ll give you key insights into how to measure your customer satisfaction scores in a robust and scaleable way.

We’ll walk you through the ways that other successful companies are measuring customer satisfaction: voice of the customer surveys, testimonial and case studies as well as data driven methods for collecting customer insights.

And we’ll also take you through the things that bad companies are doing to keep tabs on customer satisfaction and why those strategies are failing. For example, we’ll show you the disaster that phone call systems and anecdotal feedback can cause in your strategy.

Then, diving a little deeper into survey methodologies, we’ll explain everything you need to know about Net Promoter Score (NPS) surveys, Customer Satisfaction (CSAT) surveys, Customer Experience Score (CES) surveys and also some of the lesser known methods of measuring customer experience, service and satisfaction through surveys.

Creating a survey and a strategy is great. But what are the common pitfalls people make with customer satisfaction. I’d argue that they’re pretty basic and easily avoided but nonetheless often overlooked. Things such as choosing the wrong survey tool, not defining a strategy in the first place, failing to get feedback from customers and not creating a culture of CSAT improvement.

We’ve also got a guide on the best questions to ask in a customer satisfaction survey including examples that you can copy and paste into your survey.

And finally a guide to building out a schedule for measuring customer satisfaction including an overview of the key touchpoints in the customer lifecycle when you want to be getting customer voice in order to improve CX.



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