Customer is the most essential part of your business. Without the customers, no business can survive.
Therefore, it is very important that your customers are satisfied with your products and services, if you want customers to remain loyal to your company for a long time, you need to improve customer satisfaction score.
Also, many new businesses surface every day and it is upon the customers who they want to choose and that’s why it is in your favor to understand how customer satisfaction plays a role in your long-term success.
In this guide, you’ll find:
- Meaning of customer satisfaction
- How to measure CSAT?
- Importance of customer satisfaction
A. What is customer satisfaction?
Customer satisfaction is defined as how much customers are happy with the company’s product or service. You can understand customer satisfaction level by looking at how often customers use your product and whether they recommend it to others or not.
If you want to build long-lasting relationship with your customers and reduce the churn rate, you need to keep on working to improve customer satisfaction.
A happy and satisfied customer is the proof that you are able to provide customer experience that matches with the customer expectations.
See how Enthu.AI helps you improve customer satisfaction by monitoring and evaluating your agent’s performance.
B. How to measure customer satisfaction?
Measuring customer satisfaction is an important aspect of running a business. Here are some steps to measure customer satisfaction:
1. Understand customer satisfaction
Before you can measure customer satisfaction, you need to know what it means for your business. Develop a clear definition of what customer satisfaction looks like for your products or services.
2. Choose a metric
There are various metrics used to measure customer satisfaction, such as Net Promoter Score (NPS), Customer Effort Score (CES), and Customer Satisfaction Score (CSAT). Choose the metric that fits your business and customer needs.
3. Conduct surveys
To measure customer satisfaction, you can conduct surveys, both online and offline. You can use email surveys, website surveys, social media surveys, and phone surveys. In the surveys, ask questions that will help you determine how satisfied your customers are with your products or services.
4. Analyze the results
Once you have collected the survey responses, analyze the results to understand the overall satisfaction level of your customers. Look for patterns and trends to see which areas need improvement.
5. Take action
Based on the results of the survey, take action to improve customer satisfaction. Share the customer feedback with the relevant teams, and use it to improve your products or services.
6. Track progress
Keep track of your CSAT score over time to measure progress and determine if your actions are making a positive impact on customer satisfaction.
The formula for calculating Customer Satisfaction Score (CSAT) is as follows:
In this formula,
the total number of respondents is the total number of customers who responded to the survey,
and the number of satisfied customers is the number of respondents who answered positively to the satisfaction question.
For example, if you have 100 respondents, and 80 of them answered that they were satisfied with your products or services, the CSAT score would be:
CSAT = (80 / 100) x 100 = 80%
This means that 80% of your customers are satisfied with your products or services. It’s important to note that CSAT scores can range from 0% to 100%, with higher scores indicating greater levels of customer satisfaction.
C. Why is customer satisfaction important?
Improving customer satisfaction should be one of the goals of the businesses because it is five times costly to acquire a new customer than keeping an existing customer.
Therefore, you should put more efforts in retaining the existing customer.
Here are some of the reasons that explains why customer satisfaction is important:
a. A happy customer recommends your products to others and it is the best form of advertising for your brand.
b. When you solve customer issues amicably, it is seen a key to customer loyalty.
c. Repeat customers tend to spend more than new customers because they trust your brand.
d. The cost of retaining an existing customer is far less than the cost of acquiring a new customer.
D. 10 actionable ways to improve customer satisfaction
1. Listen to customers
You have to listen to your customers if you really want to solve their issues.
Talk less and let your customers speak more.
This way you can show your customers that you care and value them.
But it does not stop here, you need to take note of their feedback or suggestion and work on improving it.
2. Address your customers by name
To improve customer experience and build a personal relation, you need to start calling your customers by name.
Whether you’re on a phone, or sending an email or having conversation in person, always address customers by name, it’s one of the best sales skill.
This helps you build a relationship with the clients beyond a mere business relationship.
According to a research, people become ecstatic when they hear their name called out.
3. Deliver omnichannel support
A business should be available on every platform where your customers are.
Omnichannel support ensures that customers can engage with the customer support on their preferred channel.
Multichannel support also streamlines all the conversations across all channels like, text, social, email, instant messaging, etc.
This helps customers to reach out to business using the platform they are comfortable with.
4. Reward loyal customers
Customers want to feel appreciated. It is one of the main reasons behind increased sales and customer loyalty.
To provide a personalised experience, you can start with a loyalty program.
You need to show your loyal clients that you appreciate them by providing them with an experience they never forget.
For example, if you run a restaurant, then you can provide your loyal clients with discounts and free food.
Or you can also name dishes after them which will be altogether an awesome experience for them.
The end result will be a positive advertisement for your business.
Read more about: speech analytics software
5. Provide fast and convenient customer support
When customers have issues with the products or service, then it is the duty of the customer support to provide them with a fast, decent response.
It is necessary because customers do not have much free time. They need the solutions to their problems, swiftly.
If you keep customers waiting for a long time, it will affect the customer satisfaction levels, negatively.
If you value your customers time, they will reciprocate with increased sales and loyalty towards the brand.
6. A happy employee is a happy customer
It is true that you need to take care of customers if you want to grow. But before that, you need to take care of employees who look after customer support.
Because when taking care of employees, not only the productivity of the employees goes up but also they will do everything they can to make people love your brand even more.
Therefore, it is necessary to take care of employees who provide customer service.
7. Help your customers help themselves
Customers, nowadays, are looking to help themselves rather than reaching out to a customer support executive.
Also, 90% of customers expect a brand or organization to offer a self-service customer support portal.
It is usually in the form of tutorials, videos, user forums, a comprehensive knowledge base, etc.
Self service portals not only improves team productivity but also helps customers to learn and educate themselves at their own pace.
This saves the brand from the embarrassment of bad customer service to customers and improves satisfaction levels as well.
8. Offer 24/7 customer support
If you want to remain ahead of your competitors, then one of the best ways to do that is by providing customer support 24/7.
It becomes more essential when you have a large customer base.
To provide customer support that works 24/7, you can either hire a lot of customer reps or outsource the same.
Also, you can use support chatbot that can help with you handling customer issues.
Another thing that can be used is live chat. It allows customer reps to work remotely so that they can be available more often.
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9. Offer a straightforward refund policy
Offering a money-back guarantee to consumers will increase their trust in the brand. It gives them confidence to try your products and services.
But you have to remember that many businesses have started having a refund policy.
Therefore, it is essential that your refund policy is easy to understand for the consumers
Customers must know what is the eligibility for the money-back guarantee and clearly outline any deadlines and options people need to keep in mind.
You must have a FAQ page that helps customers to have ready solutions for most of their questions.
You can be flexible in your refund policy. Also, having a no questions asked money back guarantee is good. You can have a 60-day or 90-day money back guarantee rather than a 30-day money back guarantee.
10. Provide a trial period
Having a trial period helps customers to use products without any pressure of buying a product.
With a free trial, customers do not have to worry about risky investments.
Also, remember that do not ask for card details while registering a potential customer to use the product.
Let consumers use every feature of the product in free trial to make them understand the real value of the product.
You can also make use of Apps to create good-quality videos with pictures and music for the product demo.
This will help customers to engage with the product, understand how the product works and use it without any issues.
Any business, whether small or large, needs to work on improving the customer satisfaction.
Because if customers are not satisfied, they will look for other companies that can replace you. And you don’t want.
Also, customer satisfaction is directly linked with increased revenue, brand building, reduce costs and loyal customers.
What are three examples that can improve customer satisfaction?
Examples of ways to improve customer satisfaction include providing timely and personalized support, offering clear and transparent communication, and consistently delivering high-quality products or services that meet or exceed expectations.
What are the 4 factors influencing customer satisfaction?
The four factors that can influence customer satisfaction are product or service quality, customer service, pricing, and the overall customer experience, including convenience and accessibility.
Why do we improve customer satisfaction?
Improving customer satisfaction can lead to increased customer loyalty, repeat business, positive word-of-mouth referrals, and ultimately, higher revenue and profitability for the business.