Customer satisfaction is the key to sustaining your business profitably and growing it year-on-year. Measuring customer satisfaction KPIs is more important now than ever.
Hence, one must understand the factors that affect it and, more importantly, measure it. These numbers are customer satisfaction key performance indicators (CSAT KPIs) and help you quantify your growth.
Customers today expect a personalized, often round-the-clock experience that includes high-performing products or services, omnichannel customer support, and personalization in all interactions.
How the world is connected now has also made word-of-mouth marketing more common and popular since people can look up reviews and testimonials online with a button. Companies should try to give customers an experience that makes them happy and makes it more likely that they’ll tell others about the products and services they use.
Customer satisfaction KPIs give businesses insight into how their customers see and feel about their products and services, enable earlier problem and concern identification, and create opportunities for smarter and more proactive decision-making.
Let’s take a closer look at 5 customer satisfaction KPIs that every company should consider tracking.
What are customer satisfaction KPIs?
Customer satisfaction KPIs (Key Performance Indicators) are a type of metric that businesses use to gauge how happy or satisfied their customers are with their goods or services. It is a key metric for any business that wants to improve customer loyalty and retention.
There are many ways to find out how happy your customers are, such as surveys, customer feedback, and keeping an eye on social media. The results of these methods are then used to figure out a customer satisfaction score, which is a number that shows how happy customers are with a company’s products or services.
A high customer satisfaction score indicates that customers are happy with a company’s products or services and are likely to keep doing business with the company in the future. On the other hand, a low customer satisfaction score means that customers are unhappy with a company’s products or services and are likely to go elsewhere.
Customer satisfaction KPI is important because it helps businesses figure out where they need to improve and make the changes they need to make to make customers happier. It also helps businesses track customer satisfaction over time and set goals for improvement.
A high customer satisfaction score ultimately results in more customers sticking with the business, good word-of-mouth advertising, and more money for the company.
Importance of measuring customer satisfaction KPIs
Measuring customer satisfaction KPIs is important for businesses for a number of reasons:
1. Identifying areas for improvement
By measuring this, businesses can identify the areas where they are falling short and take corrective action. For example, if customers are unhappy with customer service, the business can focus on improving the training of customer service representatives or invest in a better support system.
2. Retaining customers
Happy customers are more likely to stay loyal to a business, which can lead to repeat purchases and positive word-of-mouth recommendations. By measuring customer service satisfaction, businesses can find out what makes customers loyal and work to strengthen those factors.
3. Increasing sales
Customers who are happy are more likely to spend more and buy more products or services. Businesses can find ways to upsell or cross-sell to satisfied customers by measuring this.
4. Monitoring performance
By measuring it on a regular basis, businesses can track their performance over time and see how changes or improvements affect their results. This allows businesses to make data-driven decisions and evaluate the effectiveness of their strategies.
5. Differentiating yourself from competitors
In today’s business world, customer satisfaction can be a key differentiator. By measuring and improving customer satisfaction, businesses can stand out from their competitors and build a strong reputation management for quality and service.
Measuring this KPI is important for businesses to understand their customers’ needs and preferences, improve their performance, keep customers, and, in the end, drive growth and profitability.
How to keep track of customer satisfaction KPIs easily?
Here are some important points that will make it easy for you to keep track of customer satisfaction KPIs:
- Set your customer satisfaction KPI, such as Net Promoter Score (NPS), Customer Satisfaction (CSAT), or Customer Effort Score (CES).
- Use a Customer Relationship Management (CRM) tool to keep track of customer interactions, feedback, and data in one place.
- Create and implement surveys to get customer feedback and track satisfaction KPI. Keep surveys brief and to the point.
- Set up a dashboard using tools like Tableau or Google Data Studio to see and track KPIs.
- Using tools like Hootsuite or Sprout Social, you can keep tabs on what people are saying about you on social media and how they feel about it.
- Set up regular check-ins to review KPIs and make any necessary changes to increase customer satisfaction.
By adhering to these guidelines, you can easily track your customer satisfaction KPI and make data-driven decisions to improve the customer experience.
5 Important customer satisfaction KPIs to consider
Businesses can better understand customer satisfaction levels and make data-driven decisions to enhance the customer experience by tracking customer satisfaction KPIs.
There are several KPIs that businesses can use to measure customer satisfaction, including:
1. Net Promoter Score (NPS)
Net Promoter Score (NPS) measures the loyalty of your customers. NPS question checks customers’ willingness to recommend a brand’s products or services to their family, friends, and colleagues. Based on their answers, they fall into three categories:
- Promoters: Customers who rated you 9 or 10. They are happy with the brand and recommend it to their colleagues and loved ones.
- Detractors: Customers who rated you 6 or below. They are not satisfied with your offerings and might switch to your competitors. They might even spread negative word of mouth about your products and services.
- Passives: Customers who rated you either 7 or 8. They fall in between the two; they will neither promote the brand nor bad mouth it.
The NPS score of any organization typically lies within the range of -100 to 100. A negative score indicates more detractors and a good NPS score indicates more promoters than detractors.
If you have more detractors, then you need to take immediate corrective measures to improve your score. If you have an equal amount of promoters and detractors, you may want to concentrate efforts on moving your passives and detractors to the promoters’ bucket.
2. High raters
Respondents who rate customer experience in your surveys with ‘highly satisfied’ or ‘extremely happy’ is an excellent gauge to know you are doing well. If your customers are rating you excellently, they are happy with your customer support teams, operations, and customer service teams, and your business is doing well.
Satisfied customers are loyal customers, which is crucial since acquiring new customers is more expensive than retaining current ones. Loyal customers are great brand advocates and a significant revenue source since they repeatedly buy from you.
Knowing you have satisfied customers is not enough; you must know the reasons behind their satisfaction and delight. You might want to replicate something at other touchpoints or do more if something works.
3. CSAT score
If your customer satisfaction KPI rises with subsequent customer surveys, you are doing things the right way. No business can have 100% satisfied customers, but they can improve the number of pleased customers every day. How can you ensure your numbers are going up?
The key is to conduct regular surveys with your customers and keep your CSAT surveys consistent. If you change your survey questions too much and too often, it will be hard to look for trends and patterns. If you have consistent surveys, you can use results from those questionnaires to set internal goals and targets within your teams.
Customer satisfaction grows from interaction with multiple teams at different time intervals. Throughout the customer journey, businesses should aim to offer the best experience.
4. Industry NPS benchmarks
NPS benchmarks are crucial to know where you stand, considering your competitors. No matter how good your score is, there is always room for improvement. Work on that and ensure your competition does not outperform you. If your competitors have a better score than you, study them and their methods to understand what you might be missing out on.
Bridge those gaps, and measure your customer satisfaction KPIs; they will surely go up. Also, track your customer effort score (CES) with your online surveys. It gauges the ease of using products or services, usually on a scale from ‘very easy’ to ‘very difficult.’
Remember to check your questionnaires’ response rate and response time; this lets you know how well your surveys are doing.
5. Brand perception
You might be advertising your products and services in a certain way, but do your customers agree? Is your brand’s messaging aligned with what the customers and the industry think and need? If not, then you need to find a way to be on the same page.
One way of doing that would be to conduct customer satisfaction surveys or check your social media handles and understand how the customers perceive you and your products or services. If your communication and perception align, you will solve customers’ needs and requirements and keep them satisfied.
Conclusion
Customer satisfaction KPIs (Key Performance Indicators) are vital customer satisfaction metrics that businesses should use to gauge their customers’ levels of satisfaction.
Businesses now find it simpler to gather data and analyze it to gain insights into their customer’s experiences thanks to platforms like QuestionPro.
KPIs like Net Promoter Score (NPS), Customer Effort Score (CES), and Customer Satisfaction Score (CSAT) help businesses spot areas that need improvement and implement the necessary changes to alleviate customer pain points.
Businesses that monitor KPIs over time can spot trends and patterns in customer satisfaction levels that can be used to forecast future behavior and modify their goods and services to suit shifting consumer demands.
Integrating customer satisfaction KPIs into your business strategy is essential for upholding client loyalty, fostering expansion, and remaining competitive in today’s constantly shifting market.
QuestionPro is a great tool for gathering and analyzing customer feedback, allowing businesses to make wise decisions that increase customer satisfaction and propel their success.
At QuestionPro CX, we offer you the best tools to monitor the customer journey in your organization. Contact us! We would love to team up with you to help you achieve better customer experiences!
