Different Ways of Measuring Customer Satisfaction
Customer satisfaction is the number one goal for any business that wants to grow. Lots of companies are investing in tools and personnel to make sure they get this right. Without proper feedback or a way to measure the levels of customer satisfaction, no business could tell the areas they need to improve on or changes to make to serve their customers better.
How to Measure Customer Satisfaction
Let’s face it. May businesses struggle with measuring customer satisfaction. The reason is clients don’t leave comments about the service or products you have on offer. Instead, they’ll either keep quiet or complain when things are not great.
Feedback, especially negative ones, help you correct where you are not doing well. However, positive feedback could do wonders for you by moving your business in the direction your clients prefer or want. There are many practical ways to measure the impact of your business or your level of customer satisfaction. Some of the ones that are super effective include:
Reviews and Ratings
Create a review and rating system. Such a system will enable customers to provide instant feedback online. Reviews are great because it gives customers the freedom to air their views without any restrictions. Also, ratings can help with measuring customer satisfaction. On a scale of one to 5, you can measure just how satisfied the client is with the product. The downside is that it merely gives a figure without reason behind it. Lots of businesses combine reviews and ratings. This is where a client provides a rating and maybe a reason for the score.
One of the bottlenecks for reviews and ratings is going through each customer feedback. Especially where there are many reviews.
Another way of determining customer satisfaction is the Net Promoter Score (NPS). This is where you ask the customer their likelihood of recommending your product to other people. It is often based on a scale of one to ten.
One of the reasons NPS is highly effective is that it doesn’t require the customer to spell out their feeling towards your product. However, it is useful because it shows how much a client is willing to put their reputation at risk to promote your product or service.
You obtain the score by subtracting the percentage of those who would recommend your product between a score of nine and ten (promoters), and those who leave a rating of one to six (detractors).
The other simple but effective method is to use customer surveys. They’re suitable for data collection and measuring the satisfaction of the customer in general. You can create simple and straightforward questions asking customers if they are satisfied with the services you offer. There are several techniques for conducting surveys, and these include in-app surveys, post-service surveys, and long email surveys.
In-app surveys are built into your application or website. They pop-out occasionally, collecting the customer’s feedback and relaying them to you. For a post-service study, the customer gets the survey immediately after they have received your service or product. For a more thorough review, you could resort to a long email. It’s going to be useful if you plan to carry out an extensive survey of your products or services.
Repeat Purchase Rates
Finally, you can examine repeat purchase rates to measure the level of customer satisfaction or their willingness to purchase your product or service a second time or more. The percentage is calculated from 0% to 100%. At 0%, no customer makes a repeat purchase. At 100%, all of your customers come back for additional purchases. Having a good repeat purchase rate means that your business is sustainable as you have loyal customers. Repeat business is far better than getting new customers in the long run.