4 Ways to Measure Customer Satisfaction
As a Customer Success Manager (CSM), one of the most important statistics you can use to monitor your customer profiles are their levels of Customer Satisfaction. The more satisfied customers are, the less likely they are to churn. This infographic suggests four different methods of quantifying satisfaction amongst customers. They are Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), Customer Effort Score (CES), and Things Gone Wrong (TGW)
Customer Satisfaction Score (CSAT) is a survey methodology, and it measures customer satisfaction with a business, purchase, or interaction. It is calculated by asking a question, such as “How satisfied were you with your experience?” There’s a corresponding survey scale, which can be 1 – 3, 1 – 5, or 1 – 10.
Net Promoter Score (NPS) is a management tool that can be used to gauge the loyalty of a firm’s customer relationships. It serves as an alternative to traditional customer satisfaction research. The Net Promoter Score is calculated based on responses to a single question: “How likely is it for you would recommend our company/product/service to a friend or colleague?” The scoring for this answer is most often based on a 0 to 10 scale.
Customer Effort Score (CES) is a type of customer satisfaction metric that measures the ease of an experience with a company by asking customers, on a five-point scale of “Very Difficult” to “Very Easy,” how much effort was required on the part of the customer to use the product or service. This score is to evaluate how likely they are to continue using and paying for the product/subscription.
Things Gone Wrong (TGW) metric originates from the Lean Six Sigma approach, and measures the number of complaints, or “Things Gone Wrong,” per 100, 1000, or up to a 1,000,000 units of survey responses, units sold, or other.
Customer satisfaction is a measure that represents the degree to which customer expectations have been met or fulfilled. Measuring customer satisfaction is neither expensive nor difficult, it comprises of gathering customer feedback via surveys. The feedback letter consists of customer satisfaction survey questions for the service industry. Any company committed to a customer satisfaction strategy needs to shift its focus from merely measuring to managing customer satisfaction. Customer satisfaction management requires using customer feedback to drive process improvements and innovations.
Customer satisfaction software helps you understand your customers better. Customer satisfaction software helps you survey customers, measure satisfaction and identify those that are unhappy customers. What is the need for customer satisfaction? The answer to this question is related to the growth of any business; the need is to have a greater number of happy customers. Besides, these customers have to keep coming back for your service and also recommend your product or service to their contacts, all this is possible only when your customers have had a great experience with your product or service. The only way to know it is through surveys or feedback.