Measure The Success Of Your Business Through Customer Satisfaction

Posted by Ross Lauder

01 September

In my last blog, I looked at the KPIS that really matter, and how you can measure the performance of your digital marketing strategy with the leads you generate, qualify and convert into customers. Here, I look at another important KPI you need to measure in order to assess the quality of the products or services you provide: customer satisfaction.

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Having customers is great, but pleasing them is even better, because it increases the chances of them becoming repeat customers and bringing other leads into your sales funnel through recommendations and positive online reviews.

It’s all fine and well to put together a great inbound marketing strategy that attracts consumers to your website with great organic content, turns those visitors into leads, qualifies those leads and then converts them into customers, but when the deal is done and you have delivered the product or service, it just makes sense to find out what they thought of the whole process so that you can learn from it and improve.

Otherwise, it’s the business equivalent of going on a really nice date and at the end of it just saying ‘Ok bye’ and walking off. Wouldn’t it be good to know if there might be a second date?

User experience is crucial, and this starts with the very first visit to your site, continuing right through to the final purchasing decision and beyond. We now have the tools to measure each and every action taken on our websites our CTAs, landing pages, etc, so it makes sense to ask that ultimate question at the end: was it good for you?

Measuring the satisfaction of your customers is an effective way of finding out if what you are offering, how you offer it, and how it helps consumers is working.

I recommend using two approaches to this KPI: the CSAT Score and Net Promoter Score (NPS)

  1. CSAT Score

The CSAT in CSAT score is just an abbreviation of those two magic words: customer satisfaction. This KPI shows how happy your customers are with their most recent interaction with your business.

The score is calculated using data derived from short customer satisfaction surveys.

Once the customer has finished a purchase, for example, the questionnaire containing a few short questions is presented to them. The answers are quantified, and the number of customers that cross the line that indicates they are satisfied is divided by the number of people who took the survey and multiplied by 100.

So, if 100 customers out of 130 who took the survey were satisfied, your customer satisfaction score is around 77%. It’s not a bad score, but it highlights to you that improvements can be made, and based on the answers you receive you can work on adjusting your sales funnel, conversion path or whichever part of the purchasing process is not optimised.

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This blog from userlike outlines the attributes of a good CSAT score form, but the main thing to focus on is what you ask. In order to get the right, helpful answers, you of course need to ask the right questions, so word your CSAT form well to look for satisfaction around specific aspects or areas of the customer experience. Your questions should be:

  • Simple yet comprehensive
  • Suited to a numbered scale format
  • Unambiguous
  • Neutral and non-leading
  • Specific to an area of analysis

Remember too that timing is crucial. Ask your customer to fill in the form when their experience is fresh in the mind.

It’s important to note that the CSAT score is not the be all and end all. It doesn't show customer loyalty or long-term happiness. It allows you to ask different questions, however, and can help you zero in on areas that impact customer happiness negatively.

It is always better to know where you can improve.

  1. NPS®

NPS® stands for Net Promoter Score, a loyalty KPI created by business strategist and customer loyalty expert Fred Reichheld.

The Net Promoter Score indicates how likely your customers are to recommend your company to other people, which is gold in the inbound digital marketing mix. Word of mouth has always been an important lead source for any business, and this is only amplified in the age of social media and online reviews.

To calculate it, a customer is asked a simple question: how likely they are, on a scale of 0 to 10, to recommend your company to others.

Those who answer with a number between 0 and 6 are called detractors - they are likely to negatively influence others when it comes to using your business. Those who answer with a 7 or 8 are called passives, as they are neutral. Those who answer with a 9 or 10 are called promoters, and they are the ones that will sing the praises of your business.

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To get the score, the percentage of the interviewees who are detractors is subtracted from the percentage of promoters. The score can be anywhere between -100 and 100.

NPS is a long-term loyalty KPI that isn't tied to a specific purchase. Businesses who use it typically send the question to their customers periodically, a couple of times a year.

Again, this score is not the one and only. The NPS doesn't tell you how many of your customers actually recommend your business to other people. But it does let you know how loyal your customers are. Higher scores indicate a high customer satisfaction, and they generally mean that your business will grow.

Discover how your business or agency can develop a comprehensive and effective inbound marketing strategy that brings real ROI and how we can help you do it by booking a call with me:

BOOK OUR TIME

Topics: customer experience, measuring customer satisfaction, inbound marketing KPIs, CSAT score, net promoter score, customer satisfaction KPIs


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