“In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy”.
— Gitman, Lawrence J., The Future of Business: The Essentials —
During the past decades, customer satisfaction has been subject to complex shifts in meaning as well as measurement. Where previously, satisfying a client was confirmation of a job well-done; now, customer satisfaction has turned into a more scientific and sizeable marketing value. Nowadays, customer satisfaction is seen as a business term measuring how a product or service meets or surpasses customer expectations.
Paul W. Farris, professor of Business Administration at the University of Virginia, defines customer satisfaction as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.”
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“Customer satisfaction is a leading indicator of consumer intentions and loyalty”.
— Farris, Paul W., Marketing Metrics: The Definitive Guide to Measuring Marketing Performance —
Customer satisfaction goals often relate closely to particular expectations. If a company advertises their product as superior and their product fails to uphold this claim, consumers will rate the product worse than had the product never been advertised at all.
By just listening to your customers, rather than spending ages evaluating revenue developments, KPIs, or other marketing factors, you learn more about your company and gain knowledge about customer perception of your product or service.
Moreover, you develop relevant conclusions about customer retention and customer churn. In the end, these insights help you improve your product or service according to customer demands.
In fact, many companies are convinced they satisfy their customers excellently without ever truly talking to them. According to studies from Lee Resource Inc, 96% of customers do not complain, but just leave and never come back.
This is why you cannot ignore your silent customers. You need to approach and guide them through their experience. Ensure your customer care is top-notch, because “70% of buying experiences are based on how the customer feels they are being treated.”
A good, effective way to measure customer satisfaction is through an appealing customer survey. Ask your customers to rate you based on a certain scaling and specific variables. For instance, a survey question might ask them to rank your customer service on a scale from 1 to 5. This provides you a solid impression of your customer’s satisfaction regarding customer service, specifically. Your customer survey allows insight into different categories regarding your customer’s experience.
With a survey like this, you learn how your customers feel about your product or service and why they feel that way. But, that’s not all. You even discover insights about how they will relate to you in the future. Will they denounce or praise you? Will they be a repeat customer? Will they recommend you to friends? On a five-point scale, “individuals who rate their satisfaction level as ‘5’ are likely to become return customers and might even evangelize for the firm” (Farris, Paul W., Marketing Metrics: The Definitive Guide to Measuring Marketing Performance).
Ongoing quality checks combined with tracking of overall customer satisfaction reduces negative word-of-mouth, which can significantly hinder positive marketing efforts by your business.
A relevant rating is an objective, immediate response to your business approach. Use it and start improving right away!
Don’t lose time. Create your individual customer survey and listen to your customers today. If you need help, read our article about how to build a successful customer survey.
“Acquiring a customer costs 5 to 10 times more than retaining one”.
— eMarketer —
Besides offering an accurate customer perception of your company, measuring and improving customer satisfaction raises the value of each customer. Studies show “totally satisfied customers have a repurchase rate that is 3 to 10 times higher than that of ‘Somewhat Satisfied’ customers.”
Bear this in mind and increase your efforts in customer retention instead of spending the majority of your marketing budget on customer acquisition. This pays off heavily in the long run.
In times when users share their experiences globally in a matter of minutes, it is evermore important to be there for your customers and understand their experiences with your business.
By setting up processes that can substantially improve customer satisfaction, you will:
Consequently, improving your overall customer satisfaction will upgrade your product, reputation, and ‒notably‒ bottom line. It is more than worth it to put some effort into customer satisfaction and research for your best possible solution.
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