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In the dynamic ecosystem of commerce, transaction relationship is not the only pillar of success. Customer satisfaction is a cornerstone of sustainable business success that encompasses the entire customer journey beyond the transactional moment.
It is the harmonious balance between what your customers anticipate and what you as a business deliver, thus leading to loyalty and positive engagement.
In this blog, we’ll unfold how to measure customer satisfaction and harness its transformative power in fostering loyalty, building reputation, and propelling growth.
Customer Satisfaction Score, or CSAT, is a customer loyalty and satisfaction metric used by companies to understand how satisfied customers are with the products, services, or experiences they provide. Tracking and measuring CSAT often will ensure that customer experience (CX) is kept at the center of everything you do.
CSAT scores can act as a powerful indicator of customer happiness and can provide you with an understanding of where your business stands against your competition.
Download Sample Survey of Customer Satisfaction Survey Template.
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→ Increase in product variety from 3000 to 7000.
Customer satisfaction can either drive a company to new heights or lead to a downward spiral. Here are some factors that contribute to the importance of measuring customer satisfaction.
Satisfied customers are potential advocates who often become repeat buyers. By consistently meeting their expectations you can build a lasting relationship that will earn their loyalty in this competitive business landscape.
A satisfied customer is likely to share their experience with others. Word of mouth in the age of social media can affect a brand’s reputation. When a customer is content with their experience, they will willingly endorse the brand and contribute to positive word of mouth, leading to positive reputation.
The growth of your business is linked to your customer’s level of satisfaction. Happy customers not only return for more but also recommend your brand to others, thus contributing to the company’s growth. A satisfied customers can become a powerful catalyst in propelling business growth.
Use the following four steps to measure customer satisfaction and to identify the different its key determinants:
CSAT surveys usually take the form of single-question surveys that ask customers a variation of the following question; “How satisfied are you with our company?”. This question will obtain feedback on customer satisfaction in regard to the customer’s entire journey with your company.
However, when you want to measure satisfaction levels after particular touchpoints, you can frame your question like this instead; “How satisfied are you with your experience today?”.
Your question must be followed by a rating scale such as the five-point Likert scale, from very unsatisfied to very satisfied, or the ten-point numeric scale. Each scale has its own set of advantages; respondents better understand the Likert scale, while the numeric scale allows for more variance.
Although it is normal for a CSAT survey just to have one question, it is beneficial to add additional questions that help explain the reasons for your score. Ergo, once you’ve asked customers to rate their satisfaction levels, you should follow with a couple of open-ended questions such as:
Questions such as these will help you identify the reasons why customers rated you the way they did. It will even provide information on what you need to do to improve CX and boost your CSAT score.
Once your CSAT survey is ready, the next step is to send it out to customers to collect feedback. You can maximise your survey response rate by using Omnichannel Survey Software, such as Voxco. A higher response rate will help ensure more accurate results.
Once you’ve obtained the responses from your CSAT survey, you can use the following formula to calculate your CSAT score:
CSAT (%) =( Number of satisfied customers*Number of Survey Responses) x 100
*The number of satisfied customers is the number of respondents that selected a score of 4 (satisfied) and 5 (very satisfied) in the survey. If the 10-point numeric scale is used instead, the number of satisfied customers will include all respondents that selected a score between 7-10.
The CSAT score is expressed as a percentage and, therefore, ranges between a scale of 0 to 100. In order to ascertain whether you have a good CSAT score or not, you must compare your score to your industry’s benchmark CSAT score.
The final step is to evaluate survey responses to extract actionable insights from your survey. The key reason for which companies measure and track different KPIs is to identify where they stand and what they can do to improve.
Therefore, once you’ve calculated your CSAT score, take a look at the responses to the open-ended questions (or any other questions you may have included) within your survey.
The feedback on these questions should provide you with insights on the reasons for your CSAT score and with some direction on how customer experience can be improved.
In this era of big data, leveraging a survey tool to solicit primary data from the customer can help you get a clear perspective on what customers anticipate and expect.
Don’t treat customer feedback as a collection of individual opinions. It is a treasure trove to discover patterns and trends and identify themes and sentiments that can help you uncover issues or positive aspects defining customer experience.
Employ a constructive approach to transform negative feedback into a tool for growth. Rather than viewing criticism as a setback, use it as an opportunity and roadmap for improvement. Transparently and proactively address negative feedback to showcase commitment to delivering quality experience.
Make customer satisfaction surveys an iterative process to build a continuous loop of improvement. Gather feedback regularly to fine-tune products, services, and overall CX so you can adapt the business process to evolving customer expectations.
In the evolving landscape of customer expectations, the value of customer feedback lies in its ability to drive change. This enhances the significance of measuring customer satisfaction. It is not simply a metric you should track but a dynamic tool that shapes the business strategy and drives growth.
Choose Voxco as your survey software to enjoy the following benefits:
Answer: The average response rate for CSAT surveys typically ranges between 5% to 30%. In most circumstances, a response rate of more than 50% is considered excellent.
Answer: The following formula can be used to calculate your CSAT score:
CSAT (%) =( Number of satisfied customers*Number of Survey Responses) x 100
Answer: The following factors may play a role in influencing survey response rates:
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