In today’s market, it’s clear that products and prices aren’t the only competing factors. Customer loyalty, customer experience, and customer satisfaction are equally important. The success of any business relies on these metrics.
Businesses need to track and measure various metrics to understand the level of customer satisfaction. The metrics provide crucial insights into what works and what needs improvement. This allows a business to retain more customers, cut costs and improve customer loyalty.
There are various customer satisfaction metrics you can use to measure performance. We’ll focus on the 7 most important metrics to give you an in-depth understanding. Analyzing these metrics will help you to enhance your customer satisfaction.
1. Net Promoter Score (NPS)
Conducting a customer success NPS survey is one of the best ways of measuring customer satisfaction. The metrics allow you to measure the likelihood of your customers to refer your business to a friend. NPS is a survey. To determine your NPS, you have to ask the customers some questions like rating how likely they are to refer you on a scale of 0 to 10.
Once you collect substantial responses, you can use it to calculate NPS. But you’ll have to group the responses first. Customers are categorized as promoters, passives or detractors if they give a score around 9-10, 7-8, and 0-6 respectively.
Promoters are good for your business. They are loyal and satisfied customers that will recommend your business. There is a thin line that separates passive customers from promoters. You can move them to promoters by making some adjustments to your business. Detractors consist of unhappy customers that are a threat to the success of your business. They can destroy your reputation by sharing awful experiences with other potential customers.
- Calculating NPS
To arrive at your NPS score, simply subtract the number of detractors from the number of promoters.
For example: If you have 40% promoters, 45% passives, and 15% detractors, your NPS score will be + 25 (positive) which is considered good.
2. Customer Service Satisfaction (CSS)
CSS determines how satisfied customers are with your services. It is measured using a rating from every review by the customer after a service is delivered. The scale normally ranges from poor to great.
You can track and measure CSS continuously, identifying patterns or trends. Accumulating sufficient data enables you to tell where you need to improve. The survey gives you the overall score based on the customer ratings received.
3. Customer Effort Score (CES)
CES, or Customer Effort Score, measures customer satisfaction using numbers between 1 and 10. It measures various aspects of user experience and helps to identify the points where changes need to be made.
CES indicates how simple or fast customers interact with your business or company. Most customers give a good score to a business with swift and smooth operations. Quick service provision results in satisfied and loyal customers. Slow operations often lead to dissatisfied customers.
This metric allows you to track various measurements including communication effort (how quickly did customers get a response), financial effort (are the customers comfortable with shipment costs), and more relevant elements.
4. Customer Satisfaction Score (CSAT)
This metric is straightforward. The goal is to determine overall customer satisfaction after interacting with your business. It can be by asking a single or a series of questions about the experience.
The customer is asked to rate the service/product offered on a scale of 1 to 5. A rating of 1 means improvements need to be made while 4 and 5 means the business is doing good.
A high rating means that the customer was highly satisfied. But when calculating CSAT, only responses with ratings of 4 (satisfied) and 5 (very satisfied) are used.
- Formula
(Add the number of satisfied customers with ratings of 4 and 5) divide by the total number of survey responses, then multiply the answer by 100 to get the percentage of satisfied customers.
5. Customer Health Score (CHS)
Customer health scoring simply refers to the process of determining if a customer is likely to remain with you or not. It enables businesses to predict and influence their relationship with customers in the future.
This metric is different from others because it doesn’t rely on customer surveys. The metric is based on observing a customer’s behavior over time and predicting their future behavior.
Here are some of the factors you can use when measuring CHS:
- How many of your products they are using
- How long your business relationship has lasted
- The amount of money they’ve transacted with you
- Their willingness to participate in surveys
- How frequently they reach out for assistance
The factors to consider vary depending on the nature of your business. But the goal is to classify customer relationships as poor, at-risk or healthy.
6. Abandonment Rate
Abandonment rate helps businesses to measure the number of customers who end an operation before its completion. It is an effective tool that eCommerce businesses can use to identify the abandonment rate of shopping carts before checking out. Call centers can also rely on these metrics to tell the rate at which customers abandon customer service calls.
By identifying the stages where most customers abandon your service or goods, you can make adjustments. Removing obstacles will reduce the abandonment rate and improve customer satisfaction.
7. Online Reviews/ Ratings
Statistics show that about 90% of buyers value online ratings and reviews. Many buyers will consider buying products with good reviews and ratings, as opposed to those with 1 or 2 stars. Your goal should be to deliver excellent products or services that attract only positive reviews.
You can use these metrics to improve performance. Providing customers with an option to review and rate your products or services will help to provide crucial insights. Businesses can determine their market position against competitors in real-time.
Conclusion
Customer experience is at the core of the success of any business today. Unlike before, customers now look for value, transparency, honesty, trust, and excellent customer experience. A focus on improving customer experience will pay off.
What’s more, a single bad customer experience does more damage than 3 good customer experiences. With the help of social media, customers can spread negative reviews with just a touch of a button.
Collecting customer feedback and determining the roadblocks to an awesome customer experience is the way. It allows you to improve services and products leaving you with satisfied customers.
