5 Key Metrics to Measure Customer Satisfaction
Every year, managers invest in countless hours of customer service training programs for their staff, but how often do those hours convert into a boost in customer satisfaction? According to a study by the McKinsey Global Institute, dissatisfied customers are more likely to share their negative reviews with up to twenty of their friends, family members and co-workers. These are potential referrals and future sales that companies are losing out on!
To determine the cause of upset customers, managers must work together to define key customer satisfaction metrics. The management team should outline what optimal customer service should look like and how to recognize satisfied customers from the indifferent ones. All of this activity should culminate in the creation of a customer satisfaction measurement strategy. No matter which customer service metric your team ends up using, it should be meaningful (linked to one of your company’s objectives or targets), be consistently tracked, and reflect real numbers (no estimates or approximates). In anticipation of low or declining customer satisfaction numbers, the team should be prepared to convert the resulting reports into an action plan.
The Unmatchable Value of Customer Journey Information
Whenever a significant change in behavior is detected in regular customers, it is recommended that a customer experience expert investigate the matter. One way to figure out what went wrong is to undertake the customer journey yourself. A customer journey is a path that an individual takes while interacting with your brand to gain access to a desired product or service. By carefully observing the existing customer journey, it is possible to deduce the reasons behind a customer’s complaints and work to resolve them. This is why it’s vital to monitor all types of feedback by customers, including the conversations they are having on social media about your business.
Net Promoter Score
Ring up your business’s net promoter score and you will have pretty accurate idea of how your customers feel about the brand. The net promoter score is determined by simply asking existing customers and clients how likely they are to recommend your services and products to their friend on a scale from 0 to 10.
Once the answers are tabulated, you can then easily categorize these customers in to three possible categories: the passives, the detractors and the promoters. The passives are those individuals who have selected 7 to 8 on just about every answer, are willing to promote your company yet are most likely to switch over to a competing brand. The detractors are those customers who aren’t likely to promote your brand with their friends and family members as they rated most answers 6 or lower. The promoters are the ones that truly matter as they are loyal customers who wholeheartedly believe in your brand as well as its products and services.
Customer Acquisition Cost
Another surefire metric to measure your customer service quality along with customer satisfaction is the Customer Acquisition Cost (CAC). To calculate the CAC, the marketing expenses incurred are divided over the total number of customers gained over a specific time period. Once the CAC is calculated, you can then take actions in reducing it by making targeted efforts to retain high-spending customers, improving website conversion numbers and implementing market automation.
Abandoned Shopping Carts & Abandonment Rates
For e-commerce businesses, measuring the abandonment rate is a sound way to gauge their customer satisfaction levels. This can be accomplished by either pulling up the record of abandoned shopping carts, or checking the transcripts of customer service calls. If there is a growing trend of customers abandoning orders, either online or over the phone, it is a red flag for management to step in and find out why. Here, once again, the customer journey must be analyzed to figure out what particular aspects are pushing them away.
In-App Customer Service Surveys
Businesses with their own official apps can greatly benefit from in-app customer service surveys. These measure just how satisfied customers feel right after making a purchase or placing an order on the app. In-app surveys provide instantaneous, direct feedback that allows businesses to determine exactly where their customer experience is compromised.
Social media monitoring
With just about all the brands having an online presence, it is important to monitor social media to find out whether customers are actually satisfied with the services and products your organization is providing. Most social media networks provide a separate tab for brand representatives to keep track of their posts and any linked activity. Facebook has an entire feature dedicated to social media monitoring through which you can find out who visits your site at what time and what sort of content is trending as the most popular at that moment in time.
When a business is truly sustainable, the measure of its success rests on customer satisfaction, not just pure profit. Satisfied customers bring repeat business, have a positive association with the brand and exhibit their loyalty by referring others to try out their favorite service or product. In addition to regularly tracking and interpreting customer satisfaction metrics data, organizations prioritize customer service training for their client-facing staff members. As the saying by the notable management guru, Peter Drucker, goes, “What gets measured, gets managed!”