Analysis

Monday, February 24, 2020

What are the key indicators for customer satisfaction?

What are the key indicators for customer satisfaction?

Measuring customer satisfaction has become essential information for companies. Not only does it reveal whether the products or services offered meet consumer expectations, it also identifies potential areas for improvement.

So which customer satisfaction indicator should you choose?

In this article, feedback management specialist SatisFactory presents 5 key indicators for monitoring customer satisfaction.

Satisfaction indicator no. 1: CSAT

CSAT - or Customer Satisfaction Score - is the basic indicator for assessing customer satisfaction. It simply measures customer satisfaction with a simple question such as "Are you satisfied with the services/products offered by our company? The respondent is asked to answer on a scale ranging from 1 to 5. Once the panel's responses have been obtained, simply divide the number of positive responses by the number of negative ones to obtain the CSAT.

Satisfaction indicator n°2: expectation vs. perception of performance

Another indicator of customer satisfaction is to ask respondents to give their opinion on different aspects of your service or product. In the same way, the response will take the form of a 5-level scale, from "strongly disagree" to "strongly agree". Although it requires respondents to spend a little more time than for the first indicator, this method provides more information, and is particularly useful for pinpointing weak points in your offering.

Satisfaction indicator no. 3: NPS

Customer satisfaction can also be measured using the NPS or Net Promoter Score. Rather than looking at the satisfaction rate itself, the question here is whether people would recommend your company to their friends and family. After all, what better advertisement is there than a recommendation from someone you trust? Simply ask respondents whether they would recommend your company on a scale of 1 to 10. The NPS is then calculated as the difference between the percentage of promoters (who answered 9 or 10) and detractors (who answered between 1 and 6).

Satisfaction indicator no. 4: intention to renew

Another way of finding out whether customers are satisfied with their purchase, and their propensity to repeat it. A repeat purchase is not only a sign of confidence in the product or service, but also a guarantee of regular income for the company. All you have to do is ask the customer if, following their first purchase, they intend to repeat it. The answer will be given on a scale from 1 to 10, and will give you a good barometer of customer satisfaction.

Satisfaction indicator no. 5: CES

Finally, the last indicator on our list is relatively recent: the Customer Effort Score. It differs somewhat from the other indicators in that it looks at the level of effort made by the consumer to have his request satisfied. We'll ask a question like "How much effort did you have to put in to get your request processed? The consumer will answer on a scale of 1 to 5, 5 being the highest level of effort, and therefore problematic for the company.

Would you like to know more about feedback management? Don't hesitate to ask us for more information, we'll be happy to help.

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