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What is Customer Satisfaction? - Definition & Examples

2. Loyalty Measurement (Affective, Behavioral)

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Customer Service Basics

1. Overall Satisfaction Measure (Attitudinal)
1. Customer-journey consistency
Why is customer satisfaction important?

Customer retention is arguably the most important factor in long-term business growth. Y ou can spend more money to acquire customers if they retain for longer and are worth more. Retention is good for business. Now the question is: With digital analytics, we can determine if users are researching a goal, how they are interacting with a feature, or even their relative struggle completing a given task. If we simply judge customer experience on conversion rates and goals completed, the DMV would score very high -- much higher than something with higher funnel drop-off, like say, buying a Tesla.

Luckily, most businesses know not to measure things so myopically. We look at data in the right context and with a blend of attitudinal and behavioral data. These are great questions -- and it depends on what you want to answer. The longer the delay, the more likely it is that your data will be skewed. The memory does strange things, especially when it comes to emotions and experiences.

Sometimes, however, we want to learn if there has been a longitudinal change in customer satisfaction, either on an individual or aggregate level basically, have we improved or not over time? In this case, you just need to control for time and make sure that all surveys are being sent to users in a similar time interval immediately, six months after purchase, two years after purchase, etc.

This allows you to analyze users in cohorts to determine differences in customer satisfaction scores over time. Who should fill out customer satisfaction surveys? Ideally, every customer that has an experience with your business. Wherever you can bake in an effortless customer satisfaction survey, I would do so barring an annoying user experience, of course. If, for instance, you want to find out what it is your best customers love about your business, you would isolate customers with that cluster of characteristics and survey them.

What does a customer satisfaction survey look like? What kind of questions do you ask? How do you determine a customer satisfaction score? To a certain extent, you also need to customize the survey itself to your business goals. What do you want to know? Which questions and their scores can be used as leading indicators of growth or churn?

Just look at the difference between a customer satisfaction survey like this: And a nice looking and simple NPS survey using a tool like Typeform: You can customize things to your own use case. Here's a nice simple customer satisfaction survey example: To inspire you or give you some ideas, here are some potential questions to measure customer satisfaction all using some sort of ordinal scale: You can also ask more open-ended questions and with the right software or data science, you can even run a sentiment analysis to quantify the responses in a way.

Change over time is more important than what the number is. You calculate your Net Promoter Score by subtracting the percentage of Detractors from the percentage of Promoters. NPS is quite popular right now, especially in quickly growing companies. But there are critics. Mainly, the argument is that the metric is too simplified and not quite predictive of retention or loyalty.

But the thing is, what are you actually doing right now to keep track of how your users experience with your product? Many startups I work with are doing absolutely nothing. In truth, I like its simplicity and actionability. Another benefit of NPS is that it can be benchmarked against others in your industry to truly understand where you stand with regards to customer satisfaction.

Rallying your company to focus on NPS, a customer satisfaction metric, will help you create a culture of customer-centricity and to improve this score with time. However, there are some guiding principles and evidence-based tactics that can get you some quick wins. Often, if you have a well-placed mechanism to catch customer feedback and respond in real time, you can prevent a user from becoming a detractor in the first place.

If you can react quickly, you can turn the situation into a positive one. Customer success expert Lincoln Murphy put it well: Make sure you give the customer other places to provide feedback ad hoc: Continually remind them that those other feedback modalities are there for them to use.

There are many ways you can do this. One way is with live chat. This technology is rapidly improving in its scalability and targeting capability, as well as reporting. Another way is with feedback forms, such as those that companies like Usabilla offer. Negative word-of-mouth is no treat for a company.

The experts say, the average upset customer tells nine people. So what can you do? To avoid losing customers because of a bad experience, you need to make it easy for them to complain. Let them know their complaints are welcome. Keep in mind, a complaining customer cares enough about the relationship with your business to at least bring the issue to your attention.

Collecting customer feedback is important in itself; not enough businesses do it. But it can be complicated and companies tend to make common mistakes. I reached out to survey design and customer feedback expert, Dr. Matthew Champagne , and he gave a super comprehensive summary of mistakes to avoid: Customers should be asked questions while it still matters to them and while their feedback could still make a difference.

The only incentives that matter to customers are answering their questions: Instead, companies annoy and insult customers by offering them some unknown but probably miniscule chance of winning some generic gift. With attention at a premium, companies have to stop focusing on self-centered rationales to fill out surveys and instead give customers internal incentives.

All customer questions should be readily answerable, either manually, within your interface, or with documentation. How many times have you experienced that and tried, to no avail, to find a live chat or some way to get an answer? First, and no matter what, conduct user experience research. Second, look into smarter content and documentation. This data will be your building ground for a solid help documentation plan.

Where are users struggling and with what? Finally, look into smarter customer support options. In addition to displaying your contact information prominently, live chat is increasingly a necessary site element to have. The stats are undeniable. The research pretty much all confirms that live chat is the most preferred form of customer service , and that expectation is only growing.

Usability is important to the customer experience. When it comes down to it, customer satisfaction is a reflection of how a customer feels about interacting with your brand. And businesses and brands quantify this positive or negative feeling primarily using surveys.

These responses can give you an idea of your average level of customer satisfaction -- along with a picture of customer loyalty , which predicts the likelihood of customer referrals. If you don't measure customer satisfaction, you can't identify unsatisfied customers. You can't analyze their feedback, make changes to your product or service to make them happy, and you can't predict or prevent customer churn.

And most importantly, if you don't measure customer satisfaction, you can't identify your happy customers who are finding success with your product or service. And if you aren't prioritizing customer success, odds are, your company isn't growing -- at least, that's what we found in a survey of nearly 1, business leaders across industries.

Growing companies prioritize customer success, and a key way to identify and activate successful customers is to request customer feedback to identify your satisfied customers. These customers are the ones who will shout your praises to their friends and family, and they'll refer new customers -- growing your business faster than sales and marketing, at no cost of customer acquisition.

Not only is it cheaper to retain an existing customer than it is to acquire a new one, but repeat customers spend more , and so do referred customers. So, there you have it. Customer satisfaction is important because it helps you solve problems, prevent churn, and identify happy customers that can become your advocates and evangelists.

Learn how to use different customer survey types next. Sales 1 Integrations HubSpot integrations with apps, tools, and software you use every day.

2. Emotional consistency

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Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.".

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Customer satisfaction is an abstract concept and involves such factors as the quality of the product, the quality of the service provided, the atmosphere of the location where the product or service is purchased, and the price of the product or service.

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Importance of Customer Satisfaction. Teams that measure customer satisfaction can easily calculate the expected risk of unhappy customers. By putting a number to the importance of customer satisfaction, you can have more meaningful conversations with your boss and company about investing in your team. If you are asking your customers if they are satisfied, you are telling them that their satisfaction matters. There are many different ways to ask: post-purchase and post-support surveys, enclosures in the monthly invoice, follow-up .

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You can't grow a sustainable business without happy customers. Learn how to manage, measure, and improve customer satisfaction here. Our most recent customer-experience survey of some 27, American consumers across 14 different industries found that effective customer journeys are more important: measuring satisfaction on customer journeys is 30 percent more predictive of overall customer satisfaction than measuring happiness for each individual interaction.