It is no surprise now that customer satisfaction is the ultimate objective of every business. Hence, it is of utmost importance that you keep track of it and incessantly measure it from time to time.
Here are some more reasons as to why you should measure customer satisfaction:
In the buyer's market, it is important that companies focus on customers. Ensuring customer satisfaction is the only way to ensure customer loyalty. While most companies take many steps to increase customer satisfaction, few try to understand what customers really expect and how the actions taken will affect customer sentiment. If you don't try to understand your customers, you will never understand what customers expect from you. How can a company without this understanding ensure consistent customer satisfaction?
While market research can provide a lot of customer insight, the next step is to analyze the data and measure how satisfied your customers really are. Two main reasons for measuring customer satisfaction are:
Satisfied customers are profitable customers: opportunities for satisfied customers in repeat business are greatly increased, which reduces customer acquisition costs. In addition, satisfied customers tend to take you to other people who serve as evangelists for your business and attract more business.
Business Performance Measures: The success of a business is directly related to its ability to enjoy, maintain, and expand its customer base. Even with satisfied customers, there is a risk that customers will disappear if the level of satisfaction with competitors is higher. Measuring customer satisfaction shows you not only how satisfied the customer is, but also how satisfied the customer really is.
When it comes to measuring customer experience, we are often asked which questions are better: CSAT (customer satisfaction) or NPS (net promotion rank). In fact, this topic has been a hot topic for several years, and supporters and critics of both issues are at odds.
We think CSAT and NPS have advantages, but they do very different jobs. While CSAT measures customer satisfaction with a product or service, NPS measures customer loyalty. CSAT is usually based on a number of claims that customers use to assess their approval or rejection, such as: Overall, we are satisfied with product / service. While NPS is based on one topic based on overall customer interaction with the business, i. H. How likely are you to recommend our company / product / service to your friends and colleagues?
When asked whether companies should use CSAT or NPS, my first question is: what do you want to measure and why?
Do you want to understand customer opinions about a particular product or service, or measure the impact of changes on a particular product or service? Then CSAT will be my recommendation.
Do you want to measure customer loyalty based on customer perceptions about your end-to-end journey? Then NPS is better.