How do you measure customer satisfaction?

How satisfied are your clients? This is how you calculate it!

Content, returning customers or partners provide us with continuous revenue. Winning over a new customer is more financially straining and time-consuming than reaching out to an old, committed buyer.

There are several methods available to evaluate if our clients are satisfied. We have already written about the significance of complaints and how important it is to pay attention to negative feedback. We also mentioned that a recommendation from satisfied clients can be a crucial tool for our expansion. However, we need reliable data to figure out how much we can count on our customers for recommendations. We’ll show you a useful method for measuring to help you out. 

One simple question to shed light on everything!

It’s been about two decades since the NPS (Net Promoter Score) appeared among the market research methods. NPS measures the willingness of customers to recommend a company’s products or services to others. Simply put, the question is: How likely is a customer to recommend the company to their friends/colleagues?

The question can be answered on a scale from 0 to 10, where the answers from 0 to 6 are negative (detractors), 7, 8 are passive, and 9 and 10 are positive (promoters/would recommend). As you can see, only a very narrow part of the scale is interpreted in such a way that any given customer would recommend our company to others, but unfortunately, this is completely realistic. In reality, there are very few people who recommend good services or products to their friends.

The NPS value should be calculated based on the responses: The percentage of customers who are critical of the company should be subtracted from the percentage of supportive clients.   -100% would mean that all our customers are dissatisfied and 100% would mean that all our customers would recommend us to their friends. After the NPS is calculated, if the value is positive, it’s already considered good, and above 50% we can talk about an exceptionally good customer experience.

Number of Responses% of Responses
Detractors (0-6) 1040%NPS= 48%-40% = 8% 
Passives (7-8) 312%
Promoters (9-10) 1248%
25

Detractors: Those who answer on a scale of 0 to 6 are most likely to be dissatisfied. They are the ones we are most likely to encounter when dealing with complaints. If a large percentage of respondents belong here, it is quite certain that we are doing something wrong. It is important to find the problem in our business, product, or service.

Passives: It is not a big problem if there are many neutral answers among the respondents. Yet something is missing that prevents us from growing our business further through recommendation. It is worth examining the small details or doing more research to find the path to outstanding customer satisfaction.

Promoters: We need to keep our supporters and even focus on them with the utmost effort. For satisfied, returning customers, it is worth creating premium services with which we can further strengthen their attachment (e.g. loyalty program, customer events), or we can encourage them with a gift card or coupon to recommend us. Promoters would surely appreciate this. 

How can we manage our customers’ satisfaction?

How can we provide a better, more reliable service? Here are two approaches that can help our business to be more successful and thus increase the number of our supporters. Our success and the efficient operation of our service are not only measurable by profit. Ultimately, of course, the most important thing is that our revenue far exceeds our spending, but it’s not just these two numbers that we need to keep an eye on.

Large companies have long used a so-called KPI (Key Performance Indicator), also known as a key efficiency indicator. These are metrics that we define for ourselves by knowing our own expectations for our business. 

For example, if we undertake to deliver the products to our customers within 5 days, then an important KPI to know is the number of customers we were unable to deliver to within the agreed time. Another important indicator is how often the average delivery time is shorter than 5 days.

To use another example: an important indicator at a hair salon is to know how many times out of 100 we were able to start the appointment on time. 

We can define a myriad of indicators for ourselves that we can track with minimal administration. Once we have several months or possibly several years’ worth of data, we can see how our business is meeting the goals we have set for ourselves. It is worthwhile to define a KPI in several ways: we can find an indicator that stimulates customer satisfaction (e.g. the shortest possible delivery time) and we can also find one that allows us to manage our costs more consciously (e.g. the average shipping cost per package).

It is important that when we start tracking indicators, we not only keep records but also have a goal with them. Periodically, we should analyze the numbers, interpret what we see, and draw conclusions. 

Customer Journey – or the path to shopping

If we’re not yet confident in the world of numbers, or if we don’t feel precise enough to record metrics, there’s still a way to improve customer satisfaction.

Successful companies pay very close attention to the comfort and satisfaction of their customers. They do more than just ask if their clients are satisfied. The approach is that it is not just the customer’s feelings about the product or service purchased but also the culmination of their experience from the first meeting to the last. Satisfaction can be driven by several impressions right from the moment they see our ad on the Internet or step into our shop.

Customer Journey is the journey the client takes with us, a service provider.

The Customer Journey is therefore the culmination of positive and negative experiences in a series of steps related to the purchase of the product. In connection with our own business, such a customer journey can be identified by looking at what is needed to serve a customer. It is worth looking at the sequence of events from the first moment, and we need to analyze what experiences and impressions our client gains throughout the process.

Examining customer satisfaction in this way can lead to a very diverse analysis. We need to understand that the loyalty of our customers and partners will be affected, if only to a small extent, even by how easy it is to find the contacts on our website. Just remember, it wasn’t by accident that the “unboxing” videos on YouTube proliferated, where the video is about unpacking a factory-packaged product in front of our eyes. It is an important experience for the customer whether the product is nicely packaged, whether it is protected from damage in the box, etc. If we go through these small details one by one, we can find a way to better our customers’ satisfaction.

There are many different methods we can use, but our performance must also be assessed. We should periodically check the results of our efforts when it comes to customer satisfaction. It is best to re-measure NPS regularly and take it into account when introducing an important change that affects the customers. Applying the above methods can only be to our advantage, we encourage you to run your businesses consciously. 

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