Key Metrics for Customer Satisfaction

December 11, 2023

Customer satisfaction is extremely important for businesses, because unhappy customers harm businesses in the long run. Therefore, there are some metrics that we need to apply in the process of improving customer satisfaction. In this article, we will talk about key metrics that are important for satisfaction. Let’s take a look at what these metrics are.

NPS

Firstly, let’s look at what NPS is. NPS stands for “Net Promoter Score”. It is used to assess and improve the customer loyalty of a company or organisation.

In addition, NPS is an effective tool used by many companies to track and improve customer experience and customer satisfaction and to gain competitive advantage.

How is NPS Score Calculated?

The calculation of the score consists of the following steps;

1. Customer Survey Preparation

In the first step, send a survey to interested customers about your product or service. At the end of the questionnaire, ask customers “On a scale of 0 to 10, how favourably would you recommend this company or product?”.

2. Categorise Answers

Categorise your answers into three categories;

Promoters: Customers with a score of 9-10.
Passive Customers (Passives): Customers with 7-8 points.
Critics (Detractors): Customers with a score of 0-6.

3. Calculate the percentage of each group

Calculate the percentage for each category based on the total number of responses.

Promoter Percentage = (Number of Promoters / Total Number of Responses) x 100
Passive Percentage = (Number of Passive Customers / Total Number of Responses) x 100
Detractor Percentage = (Number of Critics / Total Number of Responses) x 100

4. Calculate NPS

Subtract the promoter percentage from the critic percentage.

NPS = Promoter Percentage – Critic Percentage

Finally, your NPS score will take a value between -100 and +100 and this score will reflect the overall satisfaction level of your customers.

Interpretation of Results

Interpreting Net Promoter Score (NPS) results is important for understanding customer satisfaction and customer loyalty.

A positive NPS score indicates that customers view your company or product in a positive light, while a negative NPS score indicates a negative view.

In addition, the interpretation of NPS results varies by sector. Since the average success of each sector will be different, you should evaluate yourself according to your sector.

Taking Action

Taking action based on Net Promoter Score (NPS) scores is important to increase customer satisfaction and improve your business. Let’s take a look at some steps to take action based on NPS scores from the table.

1. Categorising NPS Results

Recommended (9-10): Interact more with this group, thank them, offer incentive prizes or promotions. Also communicate with this group to collect their feedback to further improve your products or services.
Passive (7-8): The passive group represents customers who are satisfied but not very engaged. This group should be made more active and loyal.
Critical Criticism (0-6): Critical criticism group represents dissatisfied customers and increasing the satisfaction of this group should be the top priority. Contact these customers to listen to their problems and find solutions.

2. Improving Feedback

Analyse customer feedback and use it to improve your business processes, products or services. Monitor your progress by tracking data and monitor results by repeating NPS surveys regularly.

CSAT

CSAT stands for “Customer Satisfaction Score” and is a key metric for measuring customer satisfaction. CSAT scores are used to measure how customer satisfaction is with a particular product or service over a specific period.

The CSAT score is usually expressed on a scale of 1 to 5 or 1 to 7. Customers therefore give a number of how satisfied they are with their experience. For example, a question such as “Please rate this product or service with a score between 1 and 5” can be asked.

Stages of Designing the Questionnaire

Goal Setting,
Identifying Questions,
Scale and Scoring,
Visual Design,
Administering the Questionnaire,
Collection and Analysis of Results,
Improvement Actions,
Continuous Improvement.

The CSAT survey is a powerful tool for measuring and improving customer satisfaction. However, when designing your survey, it is important to make sure that it fully and accurately reflects your customers’ experiences.

Score Calculation

The calculation of the CSAT (Customer Satisfaction Score) score is quite simple;

Ask the Customer a Question: Usually a question such as “Please rate your satisfaction with this product/service/experience on a scale of 1 to 5” is asked.
Record the Customer’s Response: The customer answers this question with a number. For example, it selects a number between 1 and 5.
Add up the answers: Add up the points given by all customers who answered the survey.
Calculate the Average Score: When you divide the collected scores by the number of customers who answered the survey, you get the average CSAT score.

Example; 100 customers answered the CSAT survey and these customers gave a total of 400 points. The average CSAT score is calculated as follows:

Average CSAT Score = Total Score / Number of Customers = 400 / 100 = 4

In this way, you can easily calculate the CSAT score to measure customer satisfaction.

Goal Setting Steps

Evaluate Current CSAT Score,
Determine the desired CSAT score,
Set Your Goals with a Time Frame,
Develop Improvement Strategies,
Monitor Progress,
Train and Inform Staff,
Evaluate Customer Feedback.

CES

CES (Customer Effort Score) is a customer satisfaction measurement metric that can be translated as “Customer Effort Score”. CES is used to assess how easy or difficult customers find a transaction or experience. It is usually measured on a scale, for example from 1 to 7 or 1 to 5.

CES is obtained through surveys or reviews that include questions asking customers to rate how much effort it takes to solve a problem, complete a transaction or use a service. A lower CES score indicates that customers find the experience easier and smoother, while a higher CES score indicates that customers find the experience more challenging and laboured.

Measurement Method

The following methods can be used to measure CES;

Surveys
Scale,
Open-ended Questions,
Collection and Analysis,
Use of Results.

Using Results

Customer Effort Score (CES) results can be used in your business in a variety of ways to improve customer experience and customer satisfaction. Here are some guidelines on how you can use the CES results;

Improving business processes,
Identifying and solving problems,
Shaping business strategies,
Training and staff development,
Customer communication and feedback,
Continuous improvement.

Development Areas

Improving Self-Service and Digital Experience,
Customer Support and Communication Improvements (Live chat, e-mail, telephone, etc.),
Product and Service Design,
Training and Information,
Feedback Collection and Improvements,
Personnel Training and Management,
Customer Satisfaction Orientated Culture.

In this article, we talked about key metrics that are important for customer satisfaction. Taking advantage of these stages will enable your company to increase your customer satisfaction. If you want to increase customer satisfaction of your business You can take advantage of Grispi’s 14-day free trial service.

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