Customer Satisfaction Definition: Customer Satisfaction (CSAT) is the measure of a customer’s delight or dismay during or after the use of an organization’s product or service. It can also refer to a customer service experience that took place when a customer interacted with your business, such as going to a diner and interacting with the wait staff.
There is a comprehensive list of tools and tactics you can use to measure customer satisfaction. One of the easiest and most popular options to measure satisfaction is through a CSAT survey. A survey, often created from questionnaire templates, may be distributed to the relevant audience. Your customers answer the survey questions, giving you exclusive insights into their feelings of satisfaction or lack thereof with your organization. You can analyze the data for insights into improving customer experience (CX).
Survey data is often collected and measured right after a transaction or at a fixed interval. Metrics such as Net Promoter Score(NPS), Customer Effort Score (CES), or Customer Satisfaction Score (CSAT) are used to provide decision-makers with an easy-to-understand score based on the survey results.
The answer seems quite simple, right? Build an excellent product or provide excellent service, and your customers will be satisfied. Well, it’s not just that and also not so simple. Let’s look at 7 ways to improve customer satisfaction.
- Set up and use communities: Brands have been using communities to source product ideas and test them. According to a recent survey, 67 % of brands use communities to collate ideas for new features or from customers; and 46 % rely on getting feedback on new products or prototypes.
- Ensure multi-channel communication: With so many channels such as mobile, web chat, social, and email available, brands need to look at an omnichannel approach to continue to serve their customers well. Having a multi-channel strategy ensures customers can seamlessly navigate from one channel to another without having to reiterate their feedback from other channels.
- Ensure employee satisfaction: Customer experience (CX) and employee experience (EX) are intricately linked. If your employees are happy and satisfied, it will translate into better CX long term through their work and efforts. Conduct employee surveys to gauge your organization's employee satisfaction levels and act on them as necessary.
- Utilize your customer survey data wisely: It's not enough to conduct customer surveys; you need to close the loop too. Use that data to find out what's working and what's not, plug any gap areas to improve customer satisfaction and experience.
- Read up on current customer reviews: Customers will write up reviews whenever they use your product or service, and some as per their convenience. This data is crucial to success and ensuring an excellent CX. Do not just read up on some reviews, stay current, visit product review sites to understand what customers are saying then, and improve your product or service.
- Interact with your teams regularly: Errors or bugs tend to come in waves. You need to stay on top of these to address them as and when they come and also foresee what could go wrong in certain scenarios. Meet with your teams regularly to stay vigilant and proactive
- Offer product training and customer support: Confusion about using your product can be off-putting. This may compound with poor customer support. Ensure this is taken care of by providing product training and customer support. Use channels such as YouTube to upload tutorials and help customers get started. Happy customers also make good advocates.
Customer satisfaction surveys are easily the most effective tools to get feedback on the quality of your products and services. Using multiple-choice questions or matrix questions can be quite impactful in getting the desired results.
Surveys can also be used to learn what customers think about you and your market reputation. This data can be put to work to learn how you can make improvements. A customer satisfaction survey can also be instrumental in developing new features or products. Most customers will tell you honestly what will and will not work concerning the current market trends.
View all CSAT survey templates
What are the common types of customer satisfaction surveys?
What type of customer satisfaction survey to run depends entirely on the focus of your study. Are you trying to judge the quality of your service or how the customer feels? Or do you want more insights into why your product is doing well? As these questions are different, so are the surveys you need to conduct. Let’s look at some of the common types of Customer Satisfaction Surveys.
- Voice of Customer Surveys: This type of survey measures customer opinion on your most important business parameters. Use this template with ready-made survey questions to customize a survey for your customers.
- Product Surveys: Performance of a product is hugely reliant on how well-received it is with the customers. Product surveys play a vital role in understanding how important different aspects of products are to customers, including features, cost, and usage.
- Service Evaluation Surveys: Service promptness, ease of getting customer service, and staff responsiveness are key to satisfied customers. A service evaluation survey gives you access to insights on your current level of customer service and how your business can improve.
Now that we know what customer satisfaction surveys are and their types, let’s look at some benefits. Here are top 10 benefits of conducting customer satisfaction surveys.
- Recognize trends: Surveying your customers helps you understand their choices and preferences, and how patterns arise from those choices. This lets you track and measure customer experience and customer satisfaction. In this day and age of A/B testing, competitive pricing, aggressive marketing, etc. it is essential to get feedback from customers to stay on top always. Use different types of questions to get relevant information from your customers and avoid survey fatigue.
- Gain valuable feedback: Directly interacting with your customers gives you valuable feedback, feedback that is genuine and honest. Communicating with your customers also builds trust; they see their feedback is valued and acted upon. CMO Magazine says customers spend more as faith grows. It further says loyal customers tend to spend 67% more than new customers.
- Boost customer retention: Getting information from your customers helps grow in overlooked areas or areas not performing well in terms of your product or service. This helps in bridging any gaps and improving customer retention and customer experience.
- Reduce acquisition cost: Getting new customers costs brands more money than existing or repeat customers. Use your surveys to find new ways to retain your existing customers and earn their loyalty. Loyal customers will be more accepting of any new products or services that you might have to offer.
- Understand customer perspective: It is important to know your customers, understand their perspective. Without knowing why they like a certain product or service, their needs, and requirements, you cannot deliver an excellent customer experience. To truly provide a product or service that they like, you need to focus on understanding their perspective. Open-ended questions in a survey will help you get data that will shed light on better understanding them.
- Set priorities: Before launching a customer satisfaction survey, you need to decide and set priorities for optimum results. This will help identify problems, if any, such as packaging, customer service, billing, etc.
- Track feedback changes: If you have a product or service that has been through several changes or iterations, surveys can help track changes in customer feedback over a period. This helps you look at trends and also at what worked and what didn’t.
- Nurture promoters: No matter how much you spend on advertising or how many avenues you use to promote your product or service, it will never come close to word-of-mouth. Happy and satisfied customers are the brand advocates that you will ever get. If you act on the changes and suggestions by your customers, they take note and develop a deeper appreciation and loyalty for your brand.
- Maintain customer loyalty: Customer satisfaction surveys help you keep your customers loyal by acting on their feedback and improving your product or service. In today's social media age, you need to connect with your customers more, be it through emails or online surveys or any medium that works for you.
- Gain a competitive advantage: All brands are super competitive; every brand needs to stay relevant and ahead of others. A new feature, USP, etc. needs to be clearly conveyed and marketed to your customers. You fail to do that, and you may lose to your competitor. Also, keep an eye out on your competitors, see what they are doing, and outperform them.
Poor customer experience is one of the leading reasons why customers stop interacting with a brand. You can use CSAT survey tools to help you create, distribute, and analyze satisfaction surveys to improve the customer experience.
Standard satisfaction scores include CSAT Score, Net Promoter Score (NPS), Voice of Customer (VOC), Customer Effort Score, Customer Churn, and the Likert Scale.
Here are some of the commonly used CSAT survey tools to measure your customer satisfaction and experience metrics:
- Net Promoter Score (NPS):
Net Promoter Score (NPS) is the percentage of the customers that will recommend your company or business to their family, friends, or colleagues. It’s an important tool to measure customer satisfaction and experience metrics. NPS surveys come in handy in doing that.
Your NPS can be determined by asking a simple Net Promoter Score question to your customers:
“On a scale from 0-10 (where 0 being lowest and 10 being highest), how likely are you to recommend us to your family or friends?”
Your NPS can be calculated by subtracting the Detractors from the Promoters.
Why measure NPS?
There are several studies conducted that show NPS results have a significant impact on the success of a brand or an organization. Some might argue NPS is just a snapshot of a customer’s sentiments. However, these sentiments determine whether the customers will recommend your brand or not.
This customer satisfaction and experience metric facilitate in-depth feedback. With the right platform, you can even convert your detractors into promoters by immediately addressing their concerns.
- Customer Satisfaction Score (CSAT):
Customer satisfaction is an essential tool that helps you understand if you have surpassed customer expectations of your product or services. Your CSAT score enables you to measure satisfaction and overall customer experience.
Customer Satisfaction (CSAT) Score is measured by sending customers a survey asking them to rate their level of satisfaction with the interaction on a scale of “Not satisfied at all” to “Very satisfied.”
- Customer Effort Score (CES):
Customer Effort Score (CES) is a survey metric used to measure customer experience. CES surveys usually ask a single question to increase customer loyalty and decrease customer effort.
Generally, the more effort required by a customer, the more their loyalty decreases. A business or organization constantly strives to make its customer effort “effortless.” Excellent customer experience directly results in reducing customer efforts and increasing customer satisfaction.
For example, if you own a retail clothing shop and the customer must constantly walk around the store to find employees for assistance, an attentive shop employee anticipates the customer’s needs. The customer is more likely to return to the store where their needs were easily met.
- Customer Churn:
Customer churn is a phenomenon where customers stop purchasing products or services from a brand. Customer churn is also known as customer attrition.
Customer churn rate or customer attrition rate is the mathematical calculation of the percentage of customers who are not likely to make another purchase from a business. It’s extremely important to keep the customer churn rate low for any business, as acquiring new customers costs more than retaining existing ones.
Additionally, highly satisfied customers are great brand ambassadors. They help spread a positive word of mouth and recommend your brand or services to their family, friends, and colleagues.
To calculate the customer churn rate, divide the number of customers you have lost by the total number of customers. You can segment your customers based on the frequency of their purchase to help estimate the churn rate.
This formula helps you calculate the customer churn rate.
Every organization has its unique methods to garner feedback regarding customer satisfaction. These methods are broadly categorized into two surveys based on the organization's niche or target audience.
- Direct Transaction Survey:
This type of customer satisfaction survey is conducted in cases where the organization requires immediate feedback after customer transactions.
For example, a store asks buyers to respond to a quick survey after purchasing a product, or a pop-up survey appears after an online transaction. Questions aim to gain insights into the shopping experience that just occurred. The purpose of conducting this survey is not to understand the detailed opinion of customers, but rather to keep a tab on the latest transaction experiences.
- Overall Satisfaction Survey:
These surveys are conducted to understand an organization’s overall reputation in the eyes of the customers. They’re also known as “relationship surveys” as they’re generally used to maintain customer relationships.
Usually, overall satisfaction customer surveys are conducted in the disguise of direct transaction surveys. This helps the organization learn about customer satisfaction regarding a customer’s entire experience with the organization while limiting response bias.
Service quality reflects a customer’s perspective towards your products and services in comparison to their expectancy. It plays a large role in the satisfaction of your customers.
Higher service quality directly leads to an increase in customer satisfaction. By offering customers great service quality upfront, you can save time and effort on creating ways to increase satisfaction.
Thanks to new technology and increased global access to brands, it has become extremely critical to maintain a strong standard of customer satisfaction and service quality. This can be achieved by imparting the importance of service to the staff members who are dealing directly with customers and encouraging them to go above and beyond in their customer service efforts.