As time goes on, it seems as though there are more and more numbers to track for businesses. Customer acquisition cost, churn, and lifetime value are examples of the most used data today.
Key performance indicators (KPIs) and other metrics are helpful too. That said, tracking too much is a waste of time. Either you won’t have the ability to make meaningful improvements, or your team won’t know which metric is the most important.
It’s never a waste of time to understand how happy your customers are, and this article covers how to measure customer satisfaction.
One of the biggest benefits of tracking certain customer service metrics is that they highlight areas in need of improvement. Even if customers are generally satisfied, issues arise from time to time. And if your customers aren’t satisfied — all the more reason to listen to them!
The data speaks loudly, if you’re listening.
One simple way to identify issues is reading the survey questions you implement. Look for things like:
Another use for customer service tools is to find out why certain numbers aren’t where they should be.
Let’s say the close rate is too low: Not as many people are buying as you think should. For this situation, employ a customer service survey asking about the buying process. Ask how easy or difficult it was for new customers to buy (rating it from 0-10).
Next Step Tip: For customers who have the same common issues, reach out to them personally. Send them an email or even get on the phone. The ability to ask follow up questions will give you so much more information to use and show the affected customers you care, improving your retention.
Referrals are crucial for so many businesses. The Net Promoter Score is a metric tracked to show how likely a customer is to promote your brand or company. If this score is too low, it shows you need a revamp or tweak to your referral programs. Or perhaps there isn’t enough post-sale communication with buyers.
If your current clients aren’t likely to recommend you, they won’t keep buying from you, either.
Churn is a figure, used by businesses with a recurring “month-to-month” revenue model. High churn means that a lot of buyers are leaving each month. Low repeat customer numbers show the same issue customers aren’t sticking with you for the long haul.
Maybe the product or deliverables aren’t living up to expectations. This is either an issue with the product or how you communicate expectations when customers buy.
Finding out where these weaknesses are comes down to measuring customer service quality.
The CSAT score is one of the oldest and most trusted metrics to gauge customer sentiment. Essentially, it’s a question asked alone or as part of a larger customer survey, and the CSAT is modular, depending on your needs.
Here are a few examples of what the question may look like:
How satisfied are you with your recent purchase?
How was your consultation experience?
How would you rate the quality of [Insert things like your blog, products or services]?
CSAT questions are typically asked at the same time. For instance, whenever someone has a chat on your site, a survey is triggered; when there is a purchase made, the CSAT question about the purchase is asked.
Where CSAT measures how satisfied customers are with individual elements of your business, the Net Promoter Score allows you to see the level of customer loyalty. NPS is very similar to CSAT in that it’s typically a single question. However, there aren’t a number of queries to ask here.
The question is typically something like, “How likely are you to recommend [product/company] to your [friends/colleagues]?”
Instead of predetermined answers (very satisfied, satisfied, etc.), there is a scale of numbers for survey takers. The most common is to use a 1-10 scale.
Calculating NPS is a bit technical. First, you’ll have to calculate the percentage for each category (promoters, passives and detractors).
Example: There are 100 people which take an NPS survey
In order to find the NPS, take the percentage of promoters and subtract the percentage of detractors. For our example, the NPS is 10 (30-20=10). Once you understand how, the calculation is fairly simple.
Here is a quick look at using an online NPS calculator:
Clients and potential buyers want things to be as easy as possible. This means the buying process, getting a hold of customer service or making adjustments to orders must be as seamless as possible. It’s here where the customer effort score (CES) comes into play.
Like our other metrics, CES is typically gathered with a single question. And like CSAT, there are a range of questions. CES is perfect for anything which takes the effort of your customers or potential customers to complete.
A couple of these would be customer service interactions (things like live chat or calls with a receptionist) or the buying process (checkout pages, booking a consultation, etc.).
In order to find a CES, ask questions such as:
All the data in the world is useless until it’s put into use. All of these metrics and formulas are how to measure customer satisfaction. Once that info begins rolling in, here are a few ways to use it wisely to improve your business.
Once you’ve got the action plan together, the only thing left to do is execute it!
By signing up, you agree to receive news & updates from Smith.ai.