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How to Measure Customer Satisfaction: Methods & BenefitsJuly 9, 2020
Measuring customer satisfaction (accurately) can be tricky.
Sometimes, customer satisfaction (CSAT) surveys have complicated questions, which might stop customers from responding to them. And if they at all respond, the accuracy or quality goes for a toss.
The lack or inaccuracy of responses can lead to bad decision making by businesses, which can have a negative impact on their bottom lines.
To avoid skipped questions, it is important to have to-the-point questions and easy options for customers to choose from.
Measuring CSAT has become even more important with today’s highly aware and actively involved customers because they have multiple platforms on which they can share their views, both good and bad. This in turn can have a remarkable influence on other prospective customers about your business’s products and services.
*Social media channels such as Facebook, Instagram, Twitter, TikTok, and their likes have made the sharing of opinions a matter of a few taps on touchscreens, giving each and every customer a voice that stays around for eons in digital archives*
At the same time, feedback on social media cannot be measured for actionable steps. That’s why feedback surveys are important.
Not the lengthy questionnaires that will turn customers away but targeted, short and simple surveys that can measure customer satisfaction accurately.
To learn how to do that, in this article, we’ll have a look at:
- Benefits of Measuring Customer Satisfaction
- Ways of Measuring Customer Satisfaction
- Methods of Collecting Customer Feedback
Benefits of Measuring Customer Satisfaction
When customers are satisfied with the services they get, they are much more likely to remain loyal to your business. This is especially true for industries that have high rates of customer churn, and products that do not have differentiating factors.
Once you know how satisfied your customers are (or aren’t), you can take steps to increase their satisfaction levels further and extend their relationship with your business. This improves customer Lifetime Value (LTV) and also increases the probability of them spreading positive Word of Mouth (WOM).
Since Customer Satisfaction (CSAT) is not a readily quantifiable measure like revenues, YoY growth or EBIT, it needs to be gauged with metrics that have been designed specifically for measuring CSAT.
Ways of Measuring Customer Satisfaction
Customer Satisfaction = Customer Happiness
How to measure happiness? For this, there are different types of feedback surveys to choose from.
Let’s have a look at each of them in detail.
1. CSAT Survey
This is one of the well-defined methods for measuring customer satisfaction. The most common question in a CSAT survey goes like this:
“How would you rate your overall satisfaction with our product?”
How to Calculate CSAT Score
The responses are on a graded scale from very unsatisfactory through neutral to very satisfactory. CSAT surveys are basic and straightforward, so customers can respond quickly, and you can simply divide the positive responses by the total number of responses and multiply the resulting number by 100. This gives you the CSAT percent.
Let’s say that out of a total of 70 responses in your CSAT survey, you got 42 positive responses then your CSAT would be 60%.
42 / 70 x 100 = 60%
How to Use CSAT Survey
The simple CSAT survey works best when you have just made a change to your business processes, and want to know its impact and how it compares to the previous way you were doing things. There are many different ways to get the information you need from your customers. Check out this handy list of questions to ask:
- Did this page meet your expectations?
- Was there anything about this checkout process that we should improve?
- How would you rate your overall experience on our site today?
- How would you rate our service on a scale of 1 – 10?
- What could we have done better?
2. NPS Survey
Net Promoter Score or NPS is the simplest way to measure CSAT. This score not only indicates satisfaction but also goes a step ahead to indicate how loyal a customer is. It gives customers a numbered scale from 1 (not at all likely) to 10 (extremely likely) for measuring how likely they are to speak positively about your brand, service or business. The typical (trademarked) NPS question is:
How to Calculate Net Promoter Score
The respondents are grouped into three segments:
- Detractors (choosing 6 or lower)
- Neutrals (choosing 7 or 8)
- Promoters (choosing 9 or 10)
Subtract the number of detractors from the number of promoters (neutrals don’t count in this calculation) to get your NPS percentage. As with most CSAT metrics, the higher your NPS, the better it is for your brand’s image!
NPS remains a highly popular metric to actually convert neutrals into promoters and detractors into neutrals – or even promoters of your brand.
How to Use NPS Survey
Send them at regular intervals, for example, target the milestones in a customer’s journey or schedule it at random so that any specific interaction with your company does not result in a biased response.
Also, remember to send to different sets of customers to get a good overall idea.
Here are the different customer segments you can target:
- Ask trial users whether they would like to recommend it after the trial period ends
- Ask first-time customers about their experience
- Ask regular customers on a random basis or as per a milestone (say after 1 year or after an upgrade)
- Ask customers who downgrade or stop using your product
3. CES Survey
When customers have completed a process, gauging how difficult or easy they found it should guide your decision about improving the process so that you can improve their overall satisfaction levels. This is where the Customer Effort Score (CES) survey comes in handy.
If customers are finding the process of getting their issue resolved exhausting (for example, completing a purchase or using their promo code during checkout), you need to simplify the process.
The easier it is for customers to get what they want, the more likely they are to give you repeat business.
To gather customer feedback that helps you improve your services further, consider asking these questions:
- What’s preventing you from signing up?
- Was there anything about this checkout process that we should improve?
- Is there anything preventing you from completing your purchase?
- What could we do to make this site more useful?
- Was this help section useful?
- Were you able to find the information you were looking for?
Methods of Collecting Customer Feedback
Asking customers for feedback can be a double-edged sword. It may put off some of them if asked too directly, or may not gather enough data to be useful if not served at the right moment. Still, it is vital to know how happy customers are with what you are giving them, so you have to choose the best way to get their honest feedback without turning them off.
- In your digital product: place feedback surveys right there in your digital product to get instant feedback on how satisfied a customer is.
- In-app surveys (web or mobile): getting more popular every day with the continued popularity of smartphones and handheld devices, because they mostly run apps instead of websites. User interface integration is a key design consideration for designing good in-app questions. In-app surveys help increase your web and mobile app conversion rate.
- Website (desktop or mobile):place simple feedback surveys strategically on different pages of your website or link to certain elements to get triggered and map how satisfied a customer is with the entire experience.
- Email surveys: the tried and tested way of following up every lead via email. The customers who do take out the time and put in the effort to respond are usually honest, and so the feedback is invaluable.
The End Goal: Improving Customer Satisfaction
Indirect feedback needs to be analyzed, as does direct feedback, if something valuable needs to be made of them. The ways in which you collect customer feedback, directly or indirectly, affects their usability. Free-form answers given to questions like “how can we improve our product” have to be assessed for the underlying intent of the respondents to figure out what the majority feels is missing from your product.
Since improvement is an iterative process, going through the processes in a way that increases CSAT with every round of changes (no matter big or small) is important, so that the effect of every change on CSAT can be measured.
To measure customer satisfaction accurately, the right question needs to be served to the right customer at the right time. Qualaroo Nudges™ lets you set this with custom properties to target specific visitors who meet certain criteria as mentioned below:
- WHO THE VISITOR IS
Target options in Qualaroo have multiple factors for deciding whether to serve the survey question to all people who visit the page or to certain types of visitors based on their behavior, the type of browser they use, and their geographic location.
- WHEN THE TIME IS RIGHT
Choose when the survey question shows up. It can be at the arrival of a visitor, or when they are halfway down the page, when they show exit intent, or after they have spent a predefined amount of time on the page.
- FREQUENCY OF SURVEY QUESTION
Set the time in between repeating the survey question, just showing it once to the visitor or insisting on a response from the visitor, although this last option should be exercised carefully.
While collecting customer feedback, customers should not feel pressured to respond, or they might abandon your business altogether. That is why Qualaroo Nudges™ are designed to be unobtrusive to the user, with gentle prompts that do not divert from the user experience, and make the customer feel valued.
Measuring customer satisfaction with feedback surveys is an art with science behind it that tells you how customers are reacting to whatever you’re putting out there in real-time. With robust analytics backing such surveys, you get the power to predict what the next customer wants to turn loyal towards your brand so that you can solve the customer satisfaction puzzle the right way every time.
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