The success of any business is based on Customer Experience and we know that you do everything to satisfy your customers. But how will you know that the things you do for your customers are actually working and making them happy? Let’s say you also take Customer Feedback but does that feedback give you an exact idea to measure Customer Satisfaction?
“According to a study conducted by HelpScout, 80% of the companies claim that they deliver ‘superior’ customer services whereas only 8% of the customers agree with this statement.”
Customers give feedback in the form of comments, reviews, and answers to the questions you ask them in your survey. But it’s actually not enough to measure Customer Satisfaction. You need something which gives you a measurement of customers’ happiness in quantitative terms so that you can know exactly how much satisfaction you are able to provide your customers.
Let’s discuss the top three Customer Satisfaction Metrics which would not only help you measure Customer Satisfaction but will also enable you to track your progress. This will help you know whether you are moving towards improving Customer Experience or there is a decline in Customer Satisfaction as compared to previous months or years.
(Source: Forbes.com)
These three metrics are:
- NPS (Net Promoter Score)
- CES (Customer Effort Score)
- CSAT(Customer Satisfaction) Score
Most companies nowadays are using these popular metrics to measure Customer Satisfaction. Let’s explore what these matrices are and how they can prove to be helpful for your business.
1. NPS
NPS or Net Promoter Score has emerged as the most popular metrics to measure Customer Experience in recent years. It’s USP is its simplicity to gather Customer Feedback in terms of Customer Loyalty with just a single question survey which is also known as the Ultimate Question.
On a scale of 0 to 10, how likely would you recommend this brand to your known ones, 10 being ‘Most Likely’ and 0 being ‘Not at all Likely’?
The answer in the form of the rating given by the customers is something that tells everything. This rating tells how much satisfied your customers are with your products and services, and how loyal they are to your brand. On the basis of the scores given by the customers, they are divided into three categories.
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Promoters (0–10) - Promoters are the most loyal customers who will continue to buy your products and services and will recommend them to their family, friends, and known ones. In a way, they promote your business through word of mouth.
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Passives (7–8) - Passives will neither recommend your products and services to other people, nor they will spread any bad word of mouth about your brand. They may suggest your products only when asked for a suggestion but also have the potential to switch to other brands if they get a relatively better offer.
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Detractors (0–6) - Detractors are the most unhappy customers who are not at all satisfied with your products and services. They can affect your goodwill badly through their bad word of mouth.
Calculating NPS
You can simply calculate the Net Promoter Score of your business by subtracting the percentage of detractors from that of promoters. For instance, you got the NPS survey response from 200 customers out of which 90 are promoters, 70 are passives and 40 are detractors.
In such a case, your NPS would be %(promoters) i.e. 45 minus %(detractors) i.e. 20. which equals to 25. You can also use the Net Promoter Score Calculator for calculating your Net Promoter Score.
2. CES
CES or Customer Effort Score is a Customer Experience metric that you can use to measure the ease of doing business with you. It basically tells you how comfortably and quickly your customers are able to get their work done with your organization.
As the name also suggests, the Customer Effort Score is the score given by the customers based on their efforts to get their work done or issue resolved. Customers are usually asked one simple question.
Do you agree that the company’s service made it easy for you to get your work done, 5 being ‘Strongly Agree’ and 1 being “Strongly Disagree”.
More is the effort taken by the customer, lesser is the score of ease of doing business.
3. CSAT
CSAT or Customer Satisfaction score is a Customer Experience metric that is used to measure the happiness of your customers with your products and services. This is done by asking questions to your customers regarding their Customer Experience through a customer satisfaction survey.
Basically, you ask how much your products and services were able to satisfy the customers and make them happy. You can simply ask your customers to rate their experience. For instance, you can ask questions like:
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For Hotel Guest Feedback - How would you rate the quality of the room and room services provided to you.
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For Shopping Feedback - How would you rate your shopping experience with us?
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For Restaurant Feedback - How would you rate the food you had today in our restaurant?
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For Patient Feedback- How would you rate the interaction you had with the doctor?
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For Employee Feedback - How much satisfied you are working with this company?
You can provide rating options like Great, Good, Average, Below Average, and Poor among which customers can select one of the options depending upon their experience.
With the help of a good Customer Feedback Software, you can provide multiple choices in different forms like emoticons, stars, or rankings like 1 to 5.
