Customer satisfaction – what is it and how to measure it?

Every company should know the level of satisfaction of its customers. This is because it can react to a bad result or work on an even better one. If you, too, are keen to achieve high customer satisfaction, it is essential to find out more about the customer satisfaction index.

Find out in this article:

• What is customer satisfaction?
• What is the meaning of customer satisfaction?
• How to measure customer satisfaction?
• How to increase customer satisfaction?
• What are the benefits of measuring and increasing customer satisfaction?

Customer satisfaction – definition

Customer satisfaction is a key indicator that reflects the level of fulfilment of consumer expectations in terms of purchase experience and use of products or services offered by a company.

Customer satisfaction is a measure that assesses how satisfied customers are with a company’s products and services.

Definition of customer satisfaction

Monitoring customer satisfaction will enable you to identify areas for improvement or change in the products and services you offer. Actions taken on the basis of customer feedback are aimed at adapting the company’s strategy to changing market needs and expectations. What exactly does customer satisfaction take into account? These include:

• the availability of the products or services you offer,
• the purchasing process, and more specifically its fluidity,
• after-sales service,
• problem-solving by your team.

The importance of customer satisfaction

Customer satisfaction translates into business stability and success. In addition, it affects various aspects of the company. Does this mean that customer satisfaction is important? Of course it does! Customers who are satisfied with the products and services offered are more likely to remain loyal to the brand. And it is consumer loyalty that is essential to the long-term success of a company. Satisfied customers are more likely to repeat purchases and are also more likely to recommend a company to their friends.

Customer satisfaction surveys help to assess the effectiveness of the support team. Indicators such as response time, resolution time and number of transfers provide information on the quality of customer service. Effective management of areas for improvement will improve the efficiency of the team and have a positive impact on the consumer experience.

Customer satisfaction also translates into a positive brand image. Satisfied consumers like to share their experiences, for example on social media. They give positive feedback, comment and share promotions on their boards, which is extremely helpful when building brand awareness and a positive brand image.

Measuring customer satisfaction

When measuring customer satisfaction you can use, among other things:

CSAT survey

The CSAT survey involves the use of questionnaires, consisting of one or a maximum of two questions, about the purchasing experience. The CSAT survey is conducted after the sales process, when the customer has finalised the transaction. The question that should appear in the survey is: “How satisfied are you with the product or service?”.

Net Promoter Score (NPS)

The main purpose of the Net Promoter Score is to see if customers are willing to recommend your product or service. Based on a survey completed by consumers, you can assess whether they are promoters, detractors or are simply passive.

Customer service data

What every business should be doing is collecting customer service data. Take note of how long it takes to resolve consumer issues with your business, and monitor the growth of support tickets and requests. If an error is constantly being reported with a particular area, this means that it requires your intervention.

Increasing customer satisfaction

Customer satisfaction is essential if you want your business to succeed. Serving consumers and building relationships with them is equally important. However, research shows that there is a gap between what companies consider to be customer satisfaction and the actual consumer experience.

According to the CX Trends Report^[1], while 60 per cent of companies surveyed gave themselves high marks for customer service, as many as 68 per cent of customers believe there are many areas for improvement, and 54 per cent believe that customer service is a secondary concern for most companies. This clearly indicates that there is a disparity between the internal perception of the company and the reality of the customer.

What should be understood through such data? Investing time in understanding what consumers want and what experiences they find most satisfying will allow you to make the necessary changes to meet customer needs and expectations and deliver an excellent customer experience.

The benefits of measuring and increasing customer satisfaction

The benefits of customer satisfaction are numerous and affect various aspects of your business. If you are not yet convinced to measure and systematically improve your customer satisfaction, these benefits will certainly convince you to act:

• Learning about your company’s unique characteristics – if you monitor your customer satisfaction index, you will understand exactly what your differentiator in the market is and discover what your competitors do not have. This will put you in a position to leverage your unique features and achieve competitive advantage in the future.
• Customer retention – you probably know that it is more beneficial to retain an existing customer than to acquire a new one. When your customer satisfaction rate is high, you will find that satisfied customers are more likely to make repeat purchases. As a result, you will gain financial savings by focusing on customer retention and maintain revenue stability through long-term consumer relationships.
• Increase customer engagement – a positive customer experience makes customers more engaged and willing to recommend your business to others. Remember that customer service programmes that reward referrals can stimulate customer engagement. High customer satisfaction will allow you to effectively use whisper marketing to acquire new customers for free.
• Identify areas for improvement – satisfaction surveys help identify areas where your business can improve. This is where responding quickly to negative customer feedback will work, allowing you to eliminate problems and adjust your current customer service strategy. Survey your customers’ satisfaction and respond effectively to their needs.