How do you tell if your customers are satisfied with your service? Most customers do not bother to share genuine feedback. In such cases, assumptions aren’t something you should rely on. Leveraging customer feedback helps businesses improve CX, inspire brand loyalty and increase profitability.
There are several key performance indicators you can choose from.
In this blog, we will cover one of the most popular types of key performance indicators i.e., customer satisfaction score (CSAT) for customer experience measurement.
Customer satisfaction score
A customer satisfaction rating is a key performance indicator that indicates whether a firm’s products or services are satisfactory to clients. At any point in your customer’s experience with your brand, you can collect feedback on how satisfied they are with your products and services.
You can obtain the score by asking some simple questions to your customer through a customer satisfaction survey to measure the client’s satisfaction with a product, service, transaction or interaction. The customers can choose from a range of options, including:
· A numerical score from 1 to 10.
· Verbal indicators include satisfied, unsatisfied, neutral, very satisfied, and very unsatisfied.
· International symbols such as stars and smiley faces.
Whatever you choose, numbers, symbols or words, the scoring process will be the same.
How to calculate customer satisfaction score
You can calculate CSAT scores quite easily. Just add up all of the positive answers, divide by the number of people who took the survey, and multiply by 100.
The final percentage represents the proportion of customers who are pleased with their brand experience. A majority of people believe that five out of five and four out of five stars represent a successful outcome.
If 50 people rate your company a five and 30 rate it a four, the total number of people rating it a four or five is 80. Divide the total number of positive respondents by the total number of respondents to get a satisfaction rating of 0.8.
Multiply this by 100 to obtain the percentage of satisfied customers versus unsatisfied customers. The result will be 80%, which is an excellent result.
The benefits of measuring customer satisfaction
According to studies, customer satisfaction score is the second-most used measure of digital CX improvement. Despite its simplicity, many businesses use the score as a KPI to measure client satisfaction.
Here are some of the benefits of using customer satisfaction scores:
Helps improve customer experience
The purpose of collecting CSAT scores is to generate tangible improvements in your business that affect your customers. Customers are the only individuals who can tell you whether or not they are satisfied with your company’s vision.
Your team’s performance score is not meant to lower your self-esteem; rather, it is meant to make tangible improvements to your business.
Reduce churn rate
It can be difficult to pinpoint why some of your customers are dissatisfied if you have a large number of customers. Before customers leave you for good, you can use customer surveys to identify those who are dissatisfied. This provides you with a unique chance to make corrections before you lose that customer.
Inspire loyalty
An individual becomes loyal when they are likely to make repeated purchases with your company due to goodwill. You can measure customer engagement and retention using average order value and customer lifetime value.
Wrapping Up
Measuring customer satisfaction is a vital step in the customer service process. It helps you identify where your company stands in the eyes of customers. Therefore, helping you to improve your strategies according to the customer’s expectations.
CSAT is an effective tool used by many businesses to measure customer satisfaction scores and deliver the best results based on the ratings.
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