How do you choose the best indicator to monitor customer satisfaction?

The choice of satisfaction indicator has significant operational and strategic repercussions on customer satisfaction management.

In most cases, the KPI corresponds to one of the following choices:

• Average (general satisfaction question)
• % very satisfied or % very satisfied/satisfied (general satisfaction question)
• NPS (recommendation question)
• Composite or in-house indicators (CSAT, Net Satisfaction, etc.)

These indicators cover the entire customer experience. They are therefore all eligible to become YOUR general tracking indicator. Here we look at the advantages and disadvantages of each of these choices.

Percentage of "Very Satisfied" or "Satisfied/Very Satisfied

When it comes to customer satisfaction, a company can adopt 2 distinct strategies: "Go for excellence" or "Reduce dissatisfaction". This choice determines the indicator to be monitored: Percentage of "Very Satisfied" or "Satisfied/Very Satisfied". Once defined, the advantage of this indicator is that it is easily understood by operational staff. What's more, setting a percentage target is a natural thing to do.

Unfortunately, in most of the networks we work with, there is no uniformity in site satisfaction results. Some sites are still at the "Reduce Dissatisfaction" level, while others can really aim for excellence. This approach can penalize certain operational staff.

Average rating

The good old average score is holding its own in the scorecards of some companies. It's easy to understand and requires no special calculation. It covers the entire spectrum of respondents, whatever their level of satisfaction, and is therefore applicable to all sites and all strategies.

But from an operational point of view, it's no help at all. For its main problem is that it is extremely stable. Where other indicators will rise or fall by several points, the average will vary by only a few tenths at most. Worse still, between the attributes you need to work on as a priority and those in which you excel, there will be a difference of no more than 1 point. How can you motivate operational staff around objectives such as "We're at 8.1: let's all pull together to reach 8.2"?

The NPS indicator: decried but above all operational

The NPS indicator is often criticized. Too unstable, not easily understood by operational staff, NPS does indeed have a few shortcomings. However, it is by far the most widely used indicator in most sectors. There's probably a reason for this. Compared to the indicators mentioned above, the NPS, by virtue of the way it is calculated, covers the 2 customer satisfaction strategies. But unlike the average, it is highly responsive to actions on the ground. Some would say it fluctuates too much.

The enormous advantage of NPS remains its multi-sector hegemony. This means that benchmarks are available fairly quickly, whatever your sector of activity.

In-house or composite indicator

Some in-house indicators are simply acronyms for a better-known indicator; others require a more specific calculation. Whatever the case, they have the advantage of having a strong identity within the company. Their main disadvantage is that they are impossible to compare both within and outside one's own sector.

Conclusion

There is no default KPI for customer satisfaction management, but we recommend avoiding scores based on average calculations. Your choice should be adapted to your company's strategy and positioning.