In 2023, saying that customer satisfaction is crucial is an understatement. It’s a necessity. Imagine one day you found out all your customers have left you for one of your competitors. If the thought of falling revenue and hard work going to vain are clouding your eyes…..good because that’s where you will end up ignoring customer satisfaction.
81% of marketers consider customer satisfaction among the main competition. 59% of customers leave a brand after several bad experiences and 17% of them just after one. As per the stats, you shouldn’t lag in terms of customer satisfaction.
In this article, we are covering several questions regarding customer satisfaction:
- What is customer satisfaction?
- Why is customer satisfaction important?
- How to ameliorate customer satisfaction?
What is Customer Satisfaction?
Customer satisfaction can be defined as a metric that indicates how effectively your services or products satisfy the expectations of customers. A satisfied customer often reorders a product and stays loyal which ultimately helps the business grow.
However, the on-ground definition of a satisfied customer is different from the above-stated definition. It’s not that easy to define a ‘satisfied customer’. If you are getting a lot of purchases and steady recurring orders and you are thinking you are doing well. It could be your misconception. Maybe some of your clients forget to terminate subscriptions, maybe they are thinking of switching to your competitor in the next subscription cycle or they might be too shy to complain. None of these reasons reflect them as satisfied customers.
This is where CSAT (Customer Satisfaction Score) metrics come in handy. They let you determine exactly how your customers think about you. A high customer satisfaction score means long-term clients and an edge over competitors.
How to measure CSAT (Customer Satisfaction)?
To track customer satisfaction, you can take the help of CSAT surveys asking your clients to rate their experience on a scale of 1 to 5. You can also get an idea of client satisfaction by analyzing your service like how often they contact support, how frequently they reorder, which feature they are using the most, etc.
The CSAT survey is not the only parameter to measure customer satisfaction. There are some other metrics out there in the market that will help gauge your customers’ happiness and loyalty. NPS (Net Promoter Score) is the popular one. NPS is used to monitor how likely your customers are to recommend you to their friends.
CES (Customer Effort Score) helps you gauge how easy or difficult it is for your customers to reach you.
Measuring your customer satisfaction should be a permanent addition not just something you do occasionally or to deal with a crisis. McKinsey & Company described three C’s for customer satisfaction as Customer-journey consistency, Emotional consistency, and Communication consistency.
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Why is Customer Satisfaction Important?
The simple answer to this question is, if you want to run a business for the long term, you need to care about your customers. Let’s find out what a satisfied customer can do for you.
1. Satisfied and Loyal Customers Drive Growth
As per Bain & Co, a 5% customer retention increment brings more than a 25% increase in profits. This increment is impossible without satisfied customers. Always keep your customers satisfied in every aspect of your services, which includes your services, product, website, store, customer support, and everything you offer.
Tesla, the biggest electric car manufacturer, heavily invests in keeping their clients happy. They claim effortless car services, so effortless, that they are ready to visit your garage to fix your car. An outside-of-workshop service costs Tesla a lot, but it is paying off in the long run.
2. Dissatisfied Customers will leave you in a blink
Unhappy customers will not even think twice to leave you for your competitor and most importantly, they will not come back. Poor customer experience is the main culprit. In 2018, Microsoft reported that 61% of their customers switched due to poor customer service.
Customers prefer ease above every other aspect. Making a customer journey smooth with your brand is much more important than delighting them. Whenever mistakes happen, make them up.
Integrate a lost customer survey to find out why they are leaving you.
3. Satisfied Customers Bring More Customers
Loyal customers contribute to high customer lifetime value (CLV) as well as they are the biggest promoter that draws more customers following their recommendations. Only a satisfied customer recommends others. Every single positive review and social media comment is nectar for your business. A study from Nielsen suggests that 92% of consumers trust suggestions from their family and friends.
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How to Ameliorate Customer Satisfaction?
Improving customer satisfaction levels is not that easy. Defined goals, steady processes, and continuous effort from every team member are required to achieve them. And how can you do that?
1. Collect Customer Feedback and Be Available
Track down what your customers are saying about you on different platforms. Positive feedback means your customer support efforts are heading on the right path. Happy clients might share their experiences and ideas to further improve your products and services. It’s not possible for every company to set up 24/7 phone support, but at least set up chatbots and live chats. Reply to them as soon as possible.
2. React in Real-Time
Though the feedback given by customers is positive or negative, resolve that in real-time. Ignoring negative feedback or complaints can have some severe side effects. You will create an army of dissatisfied customers which will harm your brand’s image in the long term. Unhappy customers are more likely to share their opinion than happy ones. Try to make things up with your dissatisfied customers with compensation.
3. Keep Things Personal
Personalization is the new normal. Tailor your customer experience specific to one customer. According to Google’s research, 90% of marketing leaders claim personalization significantly increases profitability. Free coffee on our birthday feels more touched than random gift cards.
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4. Communicate Across Department
Imagine running a customer feedback survey. You received a few complaints about a bug in your app. What should be done now with the feedback? Keep them to the marketing team and don’t let the developers know or immediately share it with them, and they fix it as soon as possible.
Obviously, the second option should be the priority. Take advantage of customer feedback and share it with the respective department.
Final Thoughts
Customer-centric brands always have an edge over the competition. Higher customer satisfaction levels will help a business stand out from the competition, draw in new clients, keep its current clientele, and increase customer loyalty.