The Importance of Customer Satisfaction for your Business
In an increasingly competitive market in which organizations make more and more efforts to acquire new customers and retain existing ones, the metric associated with customer satisfaction represents an essential tool to know the level in which brands exceed their buyers’ expectations.
This key performance indicator (KPI) will help us know the level of success of our value proposition, hence the importance of knowing how useful it is for each and all of the areas of a business. This way, managing this metric properly must be considered a priority for any competitive corporation.
It is fair to say that highly engaged customers represent 23% more of the revenue than an average consumer and they are also more likely to establish a long-lasting relationship with a brand. At OfficeTrack, we strive to create optimal solutions and tools that help our clients achieve a high level of customer engagement. In the following lines, we’ll get to know the importance of satisfied customers for your business and the way this KPI can help you differentiate it from your competitors.
The Art of Acquiring Customers Loyal to the Brand
Having satisfied customers who are loyal to the brand allows companies to meet their sales targets, that’s why it is necessary to implement well-defined joint processes, train staff, and make use of the right technology to keep up with the demands placed upon them.
In order to module this combination of resources, it is crucial to measure how satisfied customers are with metrics such as lifetime value, customer profitability score or the percentage of customers who are promoters over the ones who are detractors, among others. As only by doing that we will be able to make the necessary adjustments to meet consumers’ expectations.
This way, it will be possible to know how likely it is for a customer to make a purchase or what the probability is that he/she recommends our brand, truly fundamental data to be able to forecast future sales.
Diverse studies show that many companies, both because of unawareness or apathy, don’t take into consideration customers’ complaints, which adversely affect their sales results. On this basis, 67% of consumers consider bad experiences the main reason why they stop consuming a certain brand.
Key Factors in Measuring Customer Satisfaction
KPI are essential to find out the level of satisfaction of a customer. Some of the best-known and most frequently used metrics include:
● Retention rate: time your customers stays in your business until stops paying
● Lifetime Value: total revenue generated divided by total customers
● Number of complaints: total number or complaints, can also be divided by the total number of clients and would obtain a complaint rate
● Waiting times for customer care: time passed since the request and the delivery of the service or product
● The quality levels of a service: ask your customers to qualify your service in a scale from 0 to 10
● Net promoter score (NTS): how likely your customers would refer your product or service to a colleague, in a scale from 0 to 10
Once you have decided which metrics are important for your business, the next step would be to identify the most appropriate mechanisms for measurement. This will depend on different factors such as the product or service you offer, your target audience or even your industry sector.
Surveys, suggestion boxes, complaints intake systems and phone lines set up for care claims are some of the tools that can help us find out how happy customers are with our service.
Next step would be to systemize the information loop in order for it to be available at the desired time for the right decision-making. This data should showcase an overall picture and contain precise information that results in reliable measurement.
Common Mistakes when Measuring Customer Satisfaction
The lack of systematized tools to obtain relevant information is one of the main drawbacks businesses face when they try to obtain information about how satisfied customers are with their service.
Poorly designed measurement tools
Some businesses use measurement tools that have been poorly designed, which results in data collection of little relevance that don’t provide quality information for decision-making.
A clear example of this are forms with poorly-formulated or unnecessarily comprehensive questions, or where wrong rating scales are used. Precise questions in a customer satisfaction survey are key to appropriate measurement.
Misleading interpretation of results
Another common mistake when measuring the level of satisfaction of customers is the incorrect interpretation of results, which normally happens when information doesn’t reach the right people. In these instances, it’s recommended to make use of cutting-edge measurement systems that allow a proper flow of information.
Customer satisfaction represents a competitive advantage for businesses and can put them a step ahead of their competitors. That’s the reason why it’s necessary to use a measuring system that helps make the right choices at the right time.
At OfficeTrack, we strive to create better solutions and tools that help our clients achieve their customer engagement objectives. Make sure you request a demo with our team if you would need help improving the customer satisfaction in your business.