Since the beginning of capitalism, one fact has remained true. If you satisfy your customers chances are you will be successful. The key to accomplishing this is to find out what your customers thinks of his or her experience with your business.
This is most often done with a customer survey. These surveys will provide you with great Customer Satisfaction Metrics. These metrics measure your customer experience and guide you in improving the experience, thereby assuring the continued growth of your business.
That’s the simple explanation. The fun begins when you examine what these metrics say about your company’s CX.
7 Principal Customer Satisfaction Metrics
You should seek to measure at the very least, the following:
– Customer expectations versus perception
– Likelihood that the customer will recommend your product or services to others
– The overall value of your brand (brand reputation and comparison of your brand to other brands)
– The customer experience versus the ideal experience
– Intention to purchase your product or service again
– Affective and cognitive satisfaction
– Overall customer satisfaction
Measuring these items is a good start but you must consistently utilize the metrics in your business and take action based upon these Customer Satisfaction Metrics. Customer satisfaction is a moving target, and so constantly striving to address the changing needs of your customers is the name of the game.
5 Key Performance Indicators
Survey Monkey points to key performance indicators (“KPI”) as a good way to improve the overall condition of your business. They talk about five types of KPI’s in detail, and bring to life why they are so important:
1. Net Promoter Score (NPS) measures how much your customer likes your brand and is willing to recommend and promote it to others. If more people say they will recommend you than not, your score is good. If it’s 50/50, than more improvements have to be made to push it over the neutral line. Lastly, if more people do not promote your business, find out why!
2. Extremely Satisfied or Very Satisfied. The percentage of customers who stated that they were either extremely or very satisfied is of critical importance, and in order to continue doing well, you must find out why they were so satisfied. So address that in your surveys!
3. Overall Satisfaction. This KPI should always be improving. It can be tracked with internal benchmarks. This is done by giving the same exact survey every time. That way you can compare new and old results, find problem areas and set goals to solve those problem areas.
4. External, Industry Benchmarks compares your brand to the competition. Only by comparing yourself to your competitors can you improve your performance. It is a competitive world out there!
5. Brand Attributes enable you to assure that you and your customers are on the same page about your brand. You must understand how customers view your company both to meet their expectations and to alter your brand image accordingly.
Customer Satisfaction Metrics get your Business ‘in Formation’
As you can see, Customer Satisfaction Metrics have a lot to say about how well your business is doing. It can be hard to meet customer expectations, but if your business uses the customer evaluation metric fundamentals mentioned above, it is in the best position to thrive!