Measuring customer satisfaction (CSAT) is now essential to determine the success of organizations. Measuring CSAT is now a standard, and organizations continually strive to improve customer satisfaction every step of the customer journey.
Essential 7 customer satisfaction metrics for measuring (CSAT)
Conducting customer surveys is a good way to measure customer satisfaction. However, it is not that straightforward. Asking your customers the right questions is the key to measuring it. Without the right questions, the responses may not show you the right data. Without the right data, you will not be able to identify areas of improvement to address them.
Here are 7 fundamental customer satisfaction metrics for measuring CSAT and how you can gather them.
1. Net Promoter Score (NPS)
Net Promoter Score (NPS) helps in measuring customers’ loyalty by asking your customers their willingness to recommend your brand to their peers and loved ones. It is measured by asking your customers the question – Considering your complete experience with our organization, how likely are you to recommend our products and services to your loved ones and colleagues.
Based on the answer, your respondents fall into three categories:
- Detractors: Customers that rated you between 0-6 fall in this category. These customers are not loyal or promoters and are likely to indulge in negative word-of-mouth about your brand.
- Promoters: These customers rated you either 9 or 10 and are your most loyal customers and biggest promoters. They actively promote your brand to their friends and family.
- Passives: Customers that rated you between 7-8 will fall in this category. Passives fall in between the two categories. They will not willingly recommend your brand to others but will not discourage their loved ones and colleagues either.
Calculating your NPS is quite simple; you need to subtract % of detractors from your % of promoters. Your NPS will fall between -100 to 100 depending on your customers’ perception of your brand and their loyalty towards it. While NPS lets you know where you stand, it does not provide you the reason behind your score. You can do this by adding a question after the NPS question and explore it more with your customers. Advanced Net Promoter Score or NPS+ helps you do just that. View our article to know more about the uses and advantages of NPS+.
2. Customer service satisfaction (CSS)
CSS measures your customers’ satisfaction with your service. You can measure CSS by seeking feedback from your customers every time they interact with your business. You can do this via forms, pop-ups, live chat, or online surveys. You can have a standard rating scale in these surveys and a few questions if you’d like. Keeping them standard will help you look at trends and patterns over time. This will help you identify and uncover areas of improvement and actually make improvements your customers expect. While customer service satisfaction does not give you a wholesome picture of your product, it certainly helps in understanding customer queries, problem areas, and you can use that data for strategic planning. When did you last measure your customer service satisfaction?
3. Customer Effort Score (CES)
Some products or services may be complex to operate and require significant effort from the customers. Customer Effort Score (CES) helps determine customers’ ease of using your brand’s product or service. CES surveys are aimed at decreasing customer effort and increasing customer loyalty and use a single question. There could be follow-up questions depending on what you intend to achieve via the study. Customer loyalty decreases with an increase in the effort required by customers to use your service or product. The idea is to make the usage as effortless as possible. Let us consider the example of a retail clothing store. If they have to look for assistance from employees constantly, it’s terrible for your CES. They might not return to your store again. What would help is being attentive to customers, proactively helping, and anticipating their needs and requirements?
4. Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) lets you know if your customers are happy with you or not. It measures customer satisfaction using a rating scale question that asks customers to rate their satisfaction level with a brand’s product or service. The rating scale can be either 1-10, 1-7, or 1-5. CSAT is calculated by dividing your number of happy customers by the total number of customers.
Customer satisfaction surveys are usually conducted after customer interactions and hence are relevant, in context and the response time is quick. The answers are genuine, candid and the response rates are good. On the other hand, dissatisfied customers may not be willing to answer your surveys, which could create problems in identifying problems and addressing them.
5. Customer Health Score (CHS)
Customer health lets you know if your customers will stay with you or churn over time. Customer Health Score (CHS) does not rely on customer surveys, unlike other CSAT metrics, and is a set of customer behavior observations over a period. It is determined by aspects such as:
- Product usage period
- Product type (license level – free or paid)
- Number of interactions with customer support
- Money spent with your brand
- Their willingness to answer your customer surveys, etc.
These are just some key parameters, and they may vary with organizations and the points or importance assigned to them. The key is to use these factors to categorize your customers into weak, healthy, or at-risk.
6. Customer Churn Rate (CCR)
Customer churn rate (CCR) indicates the percentage of customers your organization lost over a period. It is extremely vital to retain your existing customers, for it may cost up to seven times more to acquire new customers. Monitoring your CCR helps uncover any trends that could impact your organization and take effective measures to contain the churn. Calculating customer churn rate is simple; you start by defining your calculation period, a year, for example. Subtract your number of customers at the end of the year from the number at the start of the year. Divide this number result by the number of customers at the start of the year. This is your CCR.
Measuring CCR is not the final step; once you have that information, you need to look for more data responsible for it and what preventive measures can be taken to bring it down.
7. Customer reviews
While these cover all the angles, it is important to be mindful of any customer feedback or review that you may receive via portals, websites, or social media channels. The importance of customer reviews cannot be overstated. According to a recent study, over 90% of buyers value product reviews over product descriptions.
Ensure you have positive reviews and recommendations online on websites or portals that your potential customers may visit. If you have positive comments or customer feedback from your customers about your products or services, you may request them to write a review. If they are happy and satisfied, they would be more than happy to recommend your company to their loved ones and colleagues.
Advantages of using customer satisfaction metrics
There are several benefits of measuring CSAT metrics; let us look at some key ones.
1. Loyal customers
Happy customers are loyal customers and a good chunk of your business revenue. Consumers always return when the likey a product or service and are satisfied with the offered performance and customer service. Using these metrics, you can find out who your loyal customers are and how satisfied your customers are. You can reach out to dissatisfied customers to know their reasons and make necessary amendments to make them happy.
With NPS surveys, you can understand who your promoters, detractors, and passives are. With your promoters, you can use them to amplify your brand and positives. They are your brand’s best advocates, and you should leverage them as such. For passives, you can take measures to nudge them into becoming promoters. This could be via discounts, offers, early product previews, various benefits, etc. It would help if you worked more on detractors, going to the core reasons behind their dissatisfaction and less than favorable experience. This will help improve your overall customer experience and satisfaction levels.
3. Brand reputation
Customers with great experiences may talk to their friends and family about their experiences, but customers with bad experiences will definitely talk about it. This not only seriously hampers your brand reputation but also business revenue. Conducting CSAT surveys can help alleviate some of these concerns as you can actively track these customers and make amends.
Also, with so many social media channels available at customers’ fingertips, they can easily upload information about their less than favorable experiences or bad customer reviews. You can avoid this with timely actions and take the necessary actions to improve their experience and satisfaction.
4. Usability and experience
Conducting Customer Effort Score (CES) surveys, you can understand your customers’ efforts to use your products. You can use these studies to ensure you make their lives easier and keep that in mind for future feature rollouts or new offerings.
As you can see, all these metrics offer their own benefits and can be used to elevate your customer satisfaction. It is up to you to use them appropriately and use customer feedback to bring about positive changes to your products or services and your processes. Try QuestionPro CX to learn how it can aid your CSAT efforts and improve customer experience.
We know that all these customer satisfaction metrics and using them to measure CSAT can seem overbearing, but do not worry. QuestionPro CX can help you with all this and more. The platform has robust analytical tools and other features that help improve your customer experiences. Why don’t you register for a free trial to try it for yourself?