What is customer satisfaction?
Customer satisfaction is a measure of the extent to which customers are satisfied with a company's products or services. It depends on how well companies meet the expectations of their target groups.
Customer satisfaction is one of the most important indicators of purchase intent and customer loyalty. In doing so, it also helps to estimate future company growth and turnover. Information about customer satisfaction can also help brands determine how they might improve or change products and services.
The most important factors for customer satisfaction
But what causes customers to be satisfied or dissatisfied? This can be influenced by various factors throughout the customer journey. Here are a few examples:
- The perceived Product quality
- The perceived Product value
- which communications of the company
- usability
- The so-called Convenience, i.e. how convenient it was to order or make a purchase, for example, whether you can only pay with the card in the shop for 10 euros or more
- rapidity, i.e. how quickly a product is delivered or how long does it take to get back to you if you have any questions
- That demeanour from the company in problem cases such as deficiencies or other complaints
It is always decisive what expectations, wishes and requirements customers have with regard to the respective factor. Depending on how well this target situation matches the actual situation, customer satisfaction is higher or lower.
If expectations and reality do not match, this can be either positive or negative: If, for example, the quality of the product is not as good as expected, the customer will clearly be dissatisfied. However, if he expects, for example, that the response from a smaller company to his request will take longer but that it will come promptly, he is positively surprised and will be more satisfied. Here is a brief overview:
How can customer satisfaction be measured?
Companies should not assume that they know what their customers want and whether they are satisfied. It is essential to do everything possible to understand your own target groups. With the help of tools such as surveys or focus groups, brands can gain detailed insights into their customers' experiences and, if necessary, take countermeasures and better tailor their services or products to customer expectations.
To find out more about customer satisfaction, companies can proceed in different ways: They can measure the overall satisfaction of their customers or monitor specific touchpoints, such as KPIs in the area of purchasing, contacting customer service, or using a specific product feature.
Measuring customer satisfaction — different types of feedback
There are three types of feedback you can collect to measure customer satisfaction.
1. Overall satisfaction: Companies can determine the overall opinion of customers about a product or service. Positive answers show that customers are satisfied with their purchase decision, while negative answers indicate that they may regret this decision.
Key Figure: Customer Satisfaction Score
2. Intent to repurchase: Given the close relationship between customer satisfaction and loyalty, companies can ask their customers whether they would buy from them again to measure overall customer satisfaction. People who say they're likely to buy again are satisfied and may be more willing to leave positive reviews or share their experiences with friends and family.
3. Recommendations or word of mouth: Many customer satisfaction surveys focus on a single question: whether or not the customer would recommend a particular brand or product. This feedback shows companies whether buyers' experiences are in line with their expectations.
Key Figure: Net Promoter Score (NPS)
→ If you measure customer satisfaction quantitatively, it also makes sense to ask open-ended questions about customer satisfaction at the end. This allows customers to explain their decision and you receive concrete feedback.
How to increase customer satisfaction
As different as your customers are, so will the expectations and wishes they have of your products or services. How can you do justice to everyone? It will only be difficult to inspire everyone. But there are some general adjustments you can make to make your customers happier. Here are a few tips:
1. Gather customer feedback and always be available
Your customers need a place where they can express their opinions — both positively and negatively. To do this, combine easy-to-access customer support with surveys. Solutions such as chatbots and live chats make it easy for you to be available to your customers at any time. With them, you can receive ad hoc inquiries, suggestions, and complaints from your customers.
Positive customer feedback ensures that, for example, your product developments and your work in customer service are heading in the right direction. Happy customers can also contribute ideas to improve your products and services. This helps you build a truly customer-focused business.
And an outlet for the negative opinions of your customers gives you the opportunity to express frustration directly to you before reaching out to online communities, for example.
2. Watch mentions on social media
To get an even more accurate overview of customer satisfaction, you should also keep a close eye on social media. Specialized tools help you track sentiment in brand mentions and conversations that are relevant to your business. Special tools such as Hootsuite, Brandwatch, or Synthesio help you track the mood in brand mentions and conversations that are relevant to your company.
3. Be proactive and respond in real time
When you get feedback, you also need to ensure that it doesn't disappear unused in a (digital) drawer — especially when it's negative.
Whenever possible, you should respond to negative customer feedback in real time — or at least as quickly as possible. Try to accommodate your dissatisfied customers by either compensating them or implementing their suggestions. In this way, you can avoid negative word of mouth and get valuable suggestions on how to improve your product, service or service.
4. Personalize Your Communications
Personalization has become the norm. Meanwhile, according to a Google investigation 61 percent of consumers say brands are tailoring their experiences to their needs. And marketing experts also confirm that personalization significantly contributes to the profitability of their company.
It is hardly surprising that personalization is so effective; after all, it gives customers the feeling that they are important and not an arbitrary number in the system.
A personalized target group approach makes it possible to tailor content, services and offers to customer expectations. In this way, customers receive offers and content that are just right for them. This is much more likely to satisfy than being overwhelmed with irrelevant emails, for example.
5. Measure customer satisfaction regularly
You can't improve customer satisfaction if you don't know what you need to improve. Use surveys or focus groups to get the opinion of your customers.
6. Give your customers answers
It is far too common for customers to try in vain to find FAQs or a contact option in order to get an answer to their question about the product or service. Some companies can already speak of a “contact avoidance strategy” — which is not conducive to customer satisfaction.
Instead, put yourself in the shoes of your customers: What problems or questions might arise and where are they most likely to look for answers? Store answers there and create easy-to-find ways to get in touch with you. This can work, for example, using a chatbot, which can vary in context depending on the subpage and actively suggest appropriate topics.
Why customer satisfaction is important
The following points show that customer satisfaction is not only important but a necessity today:
- Satisfied customers are loyal
Customers are faced with an almost endless selection of offers, products and services. This makes it easy for them to switch if a company doesn't convince them. 59 percent of consumers avoid a company after several bad experiences and even 17 percent after just one bad customer experience — even if they were convinced of the brand beforehand. That showed a PwC study. However, if they are satisfied, they remain with the company as customers.
- Customer satisfaction is a growth lever
Having satisfied, loyal customers is much more valuable for companies than winning new customers. Loud Bain & Company A 5 percent increase in customer loyalty results in an increase in profit of more than 25 percent. Customer loyalty is arguably the most important factor for long-term company growth.
- Positive experiences make you stand out from the crowd
Only a few products are truly unique. Customers can search for an alternative with a quick Google search. Anyone who wants to stand out from this mass of offers therefore no longer only needs a convincing product, but also exceptionally good customer service and a positive general customer experience.
- Happy customers attract new customers
Satisfied or even enthusiastic customers will share their experiences with their environment or publish them on social media. These recommendations attract new customers. According to one Nielsen study 92 percent of consumers believe recommendations from friends and relatives more than marketing measures. And 70 percent rely on opinions they find online. Every positive review or comment on social media is therefore of great advantage for companies.
conclusion
As you can see, the importance of customer satisfaction should not be underestimated. It is the best way to attract loyal customers who will eventually become brand ambassadors. Therefore, every company should regard customer satisfaction as a key business factor and work permanently to improve it.
