Satisfied customers are more loyal, buy more and add significantly to the company’s revenue. Customer satisfaction is therefore a very important domain in marketing and self assessment of a company. Gauging it tells the concerned company how well its product or service fared in the consumer market. Studies suggest that customers who are satisfied with a company’s product are more likely to spread a good word about it. This increases the probability of their immediate circle buying the company’s products as they hold a good perception of the company.  Furthermore, satisfied customers are more likely to return to the same company to buy old as well as new products.

Important Indicators of Customer Satisfaction

There are many indicators of customer satisfaction in the market. Concerned companies track these indicators to know if their customers are satisfied or not. Some of those indicators are:

Overall Satisfaction

By administering Consumer Satisfaction Surveys regularly, companies calculate the Overall Satisfaction of their customers.  Measuring it can benefit an enterprise in more ways than it may initially anticipate. It helps a company in knowing their customers better and improving customer service. Most importantly, it helps in evaluating and improving itself with all the feedback and suggestions provided by the users.

Net Promoter Score (NPS)

Net Promoter Score is a customer loyalty metric. Companies or organisations use it to capture the referral rate of their customers.  In simple words, it checks the probability that their customers will recommend their brand to a friend, relative or colleague. Scoring is done on a scale of 0-10. The concerned authorities can segment the respondents into three categories: detractors, passives, and promoters. NPS is often used as a more general indicator of customer loyalty and brand devotion.

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score measures the satisfaction of a customer for the goods and services they availed from a company. In order to measure Customer Satisfaction Score, one just has to ask the customers to rate their satisfaction on a linear scale. This scale can be 1 – 3, 1 – 5, or 1 – 10 depending on the needs of the company. There is no universal agreement on which scale is best to use.

Customer Effort Score (CES)

Customer Effort Score is a type of customer satisfaction metric that measures the ease of an experience with a company. It examines the ease with which the customers were able to have their issue resolved successfully or complete an action. Customer Effort Score also evaluates how likely they are to continue using and paying for a product/service. So companies ask customers how much effort they have to put in to use the product or service, on a five-point scale ranging from very difficult to very easy.

Conversion Rate

Conversion Rate tries to capture how likely is a customer to make a purchase or take some other kind of action after someone from the customer service team interacts with that customer. Naturally, if the customer service was good, the number on this scale would be pretty high.

Complaint Escalation Rate

Companies in the service industry receive complaints at some point. No matter how great the company is, complaints and dissatisfied customers are inevitable part of the journey. But if there comes a point where the company starts receiving an extraordinarily large number of complaints then there could be a problem. Similarly, the company should make amendments if the rate of increase in complaints is greater than the overall customer growth. The concerned authorities could keep an eye on the dynamics of these numbers to evaluate its services as well.

Consumer Retention Rate

This indicator may seem similar to Net Promoter Scale but it just captures the retention rate of the customers, not their loyalty. It is expressed as a percentage of responses received. Their intention to buy again reflects the customers’ experiences with the product or services or the brand, in the past and the present. The higher this percentage, the greater the consumer's trust. This can lead to positive word of mouth or more spending when the same customers make their next purchases.

Brand Promoter Rate

The brand promoter rate again seems similar to the Net Promoter Score as well as the Retention rate. But this indicator just helps in capturing what percentage of the concerned company’s customers is likely to remain loyal and how many of them will recommend the company's services to others. A good brand promoter rate is a good sign for the company. It also reassures that the company is innovative and offering a superior customer experience.

Brand Detractor Rate

Brand detractor rate is the opposite of Brand promoter rate.  Therefore high Brand detractor rate is usually a bad sign for a company. A brand detractor is indeed less likely to remain loyal to the company. Further, one such customer will talk to  9 people on an average about the bad experience he / she had with the concerned company.

Abandonment Rates

This metric can applies to two  things:
  1. Abandoned customer service calls.
  2. Items never purchased in a shopping cart.
The former can be a good indicator of customer satisfaction. The amount of time a customer waits on hold, whether they obtain customer service before ending the call, how many times they initiate contact, and whether companies resolve their issue are all very important in determining their level of satisfaction with a business. Companies associated with E-commerce can track abandoned carts. Tracking this metric will let you see if you need to adjust shipping rates, checkout methods, pricing transparency, or other roadblocks to completing the sale. The concerned authorities can choose the most appropriate customer satisfaction indicator according to their needs. They can also decide the frequency of conducting surveys, its length and related components as per their requirements. It is customer satisfaction and its right assessment that really matters.

Posted in Analytics, Customer Feedback, Customer Satisfaction, Surveys

Tagged customer effort score, customer feedback, customer feedback online, customer feedback system, customer satisfaction, customer satisfaction measurement, customer satisfaction questionnaire, customer satisfaction score, customer satisfaction survey, indicators of customer satisfaction, measuring customer satisfaction, Net Promoter Score