What is customer satisfaction?
Customer satisfaction is a measurement used to quantify the degree to which an end user is satisfied with a product, service, or experience. Essentially, it gauges how a customer feels about an interaction with a brand. This metric is typically calculated with the use of a survey, allowing the customer to rate an experience on a spectrum from “satisfied” to “unsatisfied.”
Why is customer satisfaction important?
There are (literally) dozens of valid reasons why measuring the satisfaction of customers is important. But at the end of the day, most experts agree that there are a few primary ways in which customer satisfaction impacts a business.
Perhaps the most important reason on the list is that customer satisfaction helps identify unhappy customers. It may be difficult to receive negative feedback but understanding why customers are unhappy can prevent them from churning, leaving negative feedback, or spreading their discontent to other potential customers.
Secondly, it helps identify happy customers. Businesses that don’t understand what delights their customers will struggle to reproduce those experiences and retain buyers. And not only is it cheaper to keep existing customers, repeat customers usually end up spending more than new customers in the long run.
Additionally, it is a great selling tool for sales teams. Customers are more inclined to pay for a product or service if they believe (or know) that it will be great. And if the satisfaction of customers is in fact excellent, a sales team can use that information during pitches to highlight the company’s track record and distinguish themselves from the competition.
And finally, customer satisfaction can help steer product roadmaps. Negative customer reviews can alert enterprises to problems that they wouldn’t otherwise know about. Fundamentally understanding the top issues with products or services allows enterprises to address those issues in the future.
5 Ways to Improve Customer Satisfaction
- Make the employee experience a priority. Improving how employees experience the company will translate over to how they interact with customers.
- Make the customer experience a priority. Customer service and the supporting components should be a key business objective.
- Measure satisfaction often and make improvements where needed. Incorporate feedback into product roadmaps.
- Maintain open communication channels with customers; talk to them regularly and always ask what else you could be doing to improve the experience.
- Honestly incorporate feedback. Build on what customers love about the product and correct what they don’t love.
Getting Started with Customer Satisfaction
Customer satisfaction is important for success but getting started can be difficult. In fact, Gartner lists more than 100 different metrics that can be used for measuring customer satisfaction. So where should you get started?
Here at NetMotion Software, we rely on the industry standard Net Promoter Score (NPS) to understand our customers. NPS allows us to regularly survey our customers and incorporate that data into our strategic planning. And while this is just one of the available tools, it is one that any business can implement and one that we recommend.