Customer satisfaction is every business’s top priority. Considering the ever-growing competition, it has become necessary for brands to devise new strategies to measure and track customer satisfaction. Only after ensuring customer satisfaction can businesses expect to receive glowing reviews from their customers. Although using a review management system is also helpful monitoring and managing online reviews.
Here are some important customer satisfaction metrics along with their benefits.
Net Promoter Score
Net Promoter Score is one of the most important and popular customer satisfaction metrics. The ultimate aim of this metric is to determine the loyalty of the customers. With Net Promoter Score, you can find out how willing are your customers to recommend your business to others.
As tricky as it sounds, calculating NPS is very easy. All you need to do is ask your customers how likely they are to recommend your business to others once you have experienced it. Keep in mind that NPS includes three important factors i.e., promoters, detractors, and passives.
Promoters are your loyal customers who will surely recommend your business to others. Detractors are those that are least likely to recommend your business and also the most difficult to retain. And finally, passives are neutral and are neither going to promote your business nor say anything against it.
Customer Effort Score
Customer Effort Score is another popular metric to measure customer satisfaction. As the term suggests, the customer effort score measures the amount of effort put in by the customers to interact with your products and services.
This means that your customers should not have a hard time looking at or reading about the products or services required. This is especially true since most customers tend to prefer purchasing online. According to several studies, customers are far more vulnerable to being disloyal to a business if their experience was difficult.
So, it is your job as a business to ensure your customers have an easy engagement instead of adding to their list of complications.
Customer Satisfaction Score
Customer Satisfaction Score as the term suggests is all about determining the satisfaction of the customers. This is why you often see businesses asking you to rate their services once you have acquired them. This helps the company understand and get a detailed insight into what can be improved.
Over the years, businesses have become more and more possessive about this metric since happy customers are eventually loyal customers. This alone helps businesses become customer-centric entities.
Customer Health Score
Customer Health Score helps you find out the probability of customers churning away. There are three main categories of Customer Health Score i.e. healthy, at risk, and might churn. Healthy means that the customer is happy and wants to move further with the business.
At risk means, the customer is willing to shift to another brand and if not attended to, might walk away. Finally, might churn is the last and the most serious stage. This is when the customer is on the verge of walking away and the business should act immediately to retain.
This is often the case when businesses focus more on new customers instead of existing high-value customers. According to several studies, businesses around the world lose billions of dollars every year due to customer churn which is often avoidable.
Customer Service Satisfaction
Customer Service Satisfaction helps your business understand how satisfied your customers are after purchasing or acquiring products or services. The best way to determine CSF is by sharing appropriate surveys with the customers right after their support interaction.
According to numerous studies, customers are most likely to make an additional purchase after just a single positive customer experience. You can measure customer service satisfaction by sharing surveys via pop-ups, live chat, and other channels. Moreover, online reviews play a big part in influencing customer decisions.
The abandonment rate is the rate at which customers terminate their interaction with your business before the desired action could be completed. For instance, if you run a call center, the abandonment rate for your business will be the percentage of customers that are dropping the call before connecting to the representative.
Similarly, if you own an online business, the abandonment rate will be the percentage of customers leaving the site having selected some items and not going through with the purchase. To keep a low abandonment rate, it is important for businesses to keep track of every customer interaction.
For this, start with giving more focus to your website design and customer journey because it dictates how customers interact with your business especially if your business is solely online like an ecommerce store. Get a free website design to check if this makes any difference.
Customer Churn Rate
Customer Churn Rate refers to the percentage of customers who will stop doing business with you. In the business world, customer churning is common. However, it can also be avoided or reduced. Customer churning can take place due to numerous reasons and this is why it is one of the most difficult metrics to handle yet has huge advantages to offer.
Improving customer churn rate requires paying attention to factors that directly influence the purchasing decisions of customers. If you find that your customers are not responding well to your offers, discounts, and other packages and are instead churning away, it means there is something wrong with your approach that needs to be fixed.
A customer review is simply an experience shared by a customer once they have purchased or used your products or services. Customer reviews are at the core of customer satisfaction and have become so important to the point where they can be found almost everywhere.
In fact, social media platforms play a huge role in allowing online customers to pen down their opinions and maintain healthy competition. This is why you often see most customer reviews being shared by customers on social media platforms since the reach is immense.
Keep in mind that the majority of customers make their buying decisions based on customer reviews. So, if you are solely an online business, you have to be careful about how you treat your customers.
First Response Time
First Response Time is the amount of time taken by your team to respond to customer queries or requests. Many businesses have neglected this factor in the past and have paid a huge price in terms of losing customers.
If a customer is purchasing online and has a question in mind, they will only ask if you are capable of responding within a short span of time. That said, there is a direct relation between First Response Time with customer satisfaction.
If your customers are not receiving a timely response, it will simply add to their frustrations and result in a negative experience. This is why your business should be quick with its responses instead of making the customer wait for days.
customer satisfaction metrics and how to improve them. Regardless of the business type and size, it is crucial for your business to value each metric to survive in the industry. If possible, devise a team and use tools like a white label review management software that help you achieve better scores and ultimately win customers.