17. August 2020 Blog

Customer satisfaction measurement - Best Practices

The battle for customer satisfaction is taking place, whether we want it or not. Those companies who will win the client’s trust will stay in the business and expand. If you don’t believe this theory yet, you should get familiar with some data.

For, example, 72% of consumers say that they are extremely likely to work with companies if they are famous for outstanding customer service. Are you surprised? We are not. 

With more products and services available on the market and new business models focused on customer service, you need to try hard to meet clients’ expectations. 

But all the efforts could be thrown straight to the bin if the measurement of customer satisfaction becomes a neglected area. It’s like trying to repair a car and not knowing which part should be replaced. 

Let us walk you through the purpose of the car, how you can make the first steps in utilizing it, and how to check what parts are working incorrectly. Are you ready? Let’s start.

What is the purpose of customer satisfaction measurement?

The main goal of customer satisfaction measurement is to drive your business directly to growth. Some may say that KPIs are designed only for managers’ pleasure - to chase better results. Of course, the results are meaningful. But the real reason metrics are introduced is that they are the presentation of the client’s perception of the company

The more positive opinions, the more strengthened the brand's equity. The better reputation, the higher probability of recommendations. And as you can imagine, clients’ advocacy in the social media era means much more than in the times when you could recommend a product to a few closest friends. 

That’s why you should take a measurement of customer satisfaction seriously. Measure how even the tiniest changes influence the clients’ feedback and react if you receive negative reactions. To make that happen, you will have to apply customer satisfaction measurement best practices.

What are the first steps in the customer satisfaction measurement process?

Becoming a skilful driver comes with years of experience. The same is with customer satisfaction measurement. You need to find out which metrics fit your business. Also, you should learn what information the given KPIs provide you with. Some of them are more general and show you an overview of the quality of customer service. The other metrics will help you generate ideas on customer service improvement. 

What is customer satisfaction measurement best practices, then? 

  1. Make a list of all metrics that could be useful in your organization. 
  2. Learn what information all metrics give you.
  3. Find customer satisfaction measurement tools that will enable you to start collecting data.
  4. Gather data over a certain period of time.
  5. Check which results are poor and why. 
  6. Implement changes in customer service based on your findings. 
  7. Compare new data with the previous period to check if these changes helped.

Fortunately, we will help you a bit with the first three points on the list. This should pave you the way to introduce customer satisfaction measurement best practices. The rest we leave to you. 

How to measure customer satisfaction? 

#1 Customer Satisfaction Score (CSAT) 

What is that: Customer satisfaction score measures the general level of client satisfaction. The clients are asked to rate the business, purchase, or interactions with customer service reps, right after the finished talk. Usually, it takes the form of a poll.

Clients are asked, “How would you rate your experience of customer service?”. The clients use a scale from 1 to 5 or from 1 to 10 to answer it. The lowest number means the experience is very very bad, and the highest - that it was very satisfying.

Formula: a sum of points from all surveys number of survey attendees 100%

What information you have: You receive a general overview of the customer satisfaction level of a given service. To get precise feedback you can design the research for each interaction or an important moment of the process.

Generally, the good score is between 75% and 85%, and if it is lower, you should take some actions to remedy the customer satisfaction level. 

#2 Net Promoter Score (NPS)

What is that: NPS measures the level of customers’ advocacy. This metrics is based on the conviction that there are three groups of customers. There are promoters, destroyers, and those who stay neutral toward a brand.

The first group consists of regular customers, so delighted with the support service that they are willing to recommend it. In turn, destroyers are those clients who criticize the brand and are ready to replace it with another one. Neutral people are rather positive about the brand but not so much to not change a service provider. 

In the research, you ask clients how likely they would recommend your company using a scale from 1 to 10. Those whose answers are between 0-6 are brand destroyers, those with the score 7-8 are neutral, and those with 9-10 are brand advocates. Then you subtract the percentage of detractors from the percentage of promoters.

Formula:  percentage of brand promoters - the percentage of brand destroyers

What information you have: The results may range from -100% to 100%. The lowest number would mean that 100% of clients are brand destroyers. The opposite result would show that 100% of clients are brand advocates. Both situations are impossible, of course. The best customer-focused companies achieve the results above 70% and below 100%. 

When this metric is tracked over the long run, your company may measure the value of activities taken up to improve clients’ satisfaction. The higher the NPS is, the more likely is that more people stay with the brand in the long term, and the business will generate more profits through recommendations. 

#3 Customer Effort Score 

What is that: This customer satisfaction measurement method focuses on a completely new aspect of customer experience. Simply put, it shows how hard is to receive information or resolve an issue. The clients fill in a poll with a scale where 1 means it is extremely easy and 5 means that it is extraordinarily difficult.

Formula: a sum of all individual scores number of customers who provided the answers

What information you have: The higher the index is, the harder is to receive help from your company. If it is, you need to discover whether it is the problem with the interface, the form, or the customer service reps.

Customer satisfaction measurement tools

Once we agreed why you should worry about customer satisfaction measurement and what to measure, it’s time to learn how to make it possible. 

The range of today's customer satisfaction measurement tools is impressive. This only means that you have a broad spectrum of possibilities to gather insights and introduce countless, creative improvements. 

It’s worth using a few customer satisfaction measurement tools to make your hypotheses more valid. For example, if you draw some conclusions from one tool, you can confirm your theory with data from other sources. As a result, you will make more informed decisions.

#1 Survey Polls 

An online survey poll is the most common tool you can use. It’s the easiest option to send short questions after the interaction with the customer service. For example, you can ask “How satisfied are you with the service?” or “How difficult it was to resolve your issue?”

Usually, this kind of customer satisfaction measurement tool enables: 

  • customization of questions in line with popular research methods (using a scale, single- or multiple-choice questions, as well as open questions)
  • possibility to share the link with a survey via social media or email
  • real-time analysis thanks to intuitive dashboards 

#2 Emotion Analytics 

To make the surveying friendlier and more inviting to customers you should take advantage of more advanced emotion analytics. That way, clients may easily rate your customer service on an emotional scale. This method allows you to: 

  • increase the number of clients’ replies because choosing moods icons instead of the standard scale in a poll is way more natural for clients
  • make the surveys more informal 
  • analyze the statistics for each agent and use this knowledge to coach agents 

#3 Performance Statistics 

First-class customer satisfaction comes with a continuous analysis of the customer service elements. While customer satisfaction surveys and NPS scores show you a general overview of the client's perception of the services, they don’t answer the question of what leads to poor results. 

By analysis of factors that may affect your customer satisfaction, you receive a bigger picture of the clients’ behaviour and frustrations. 

Such statistics are generally available in a call center software and show various metrics, for example: 

  • average call duration
  • average speed to answer and wait time
  • average wait time
  • maximum wait time
  • average abandoned call rate

#4 Sentiment Analytics

The numbers count, of course. But effective and friendly communication with clients is the fundament of any satisfying results. The positive opinion about the company’s service may be the consequence of: 

  • using a friendly tone of voice
  • being patient 
  • using positive language 
  • showing understanding and being an active listener 

However, with many clients and agents talking with them, monitoring all conversations to check whether the conversations are client-friendly is almost impossible. Yet again, this is the reason why sentiment analytics is becoming so popular compared to other customer satisfaction measurement tools. 

Apart from making surveying more effective, it can generally be used to assess the nature of customer comments in phone calls, text messages, emails, and chat sessions. 

Thanks to this invention, your business can: 

  • gather data for each agent and define who handles clients questions in the most polite way
  • define the most frustrating issues for clients and make them less painful
  • route more complicated calls to the agents who present higher sentiment score 
  • introduce coaching the team by client-friendly agents 
  • receive alerts if some conversations are going in the wrong, impolite direction 

Take the first step in customer satisfaction measurement process 

Having such a large pool of metrics and tools, you can form a well-working machine that will drive your business to grow. To make that happen, you should take care that all elements of the vehicle are working properly with each other. 

The metrics should be easily available in the tools, be comparable in time, and the changes in customer service should be based on validated data. Only then the measurement of customer satisfaction may turn out to be effective. Because you will make informed decisions in the end.

As a result, you will fuel your business with low churn rates and high customer acquisition with a word of mouth. Those results should make up for all your efforts put in creating a customer satisfaction measurement environment.