Video: The importance of measuring customer satisfaction

Published on — Written by Wonderflow

measuring customer satisfaction
We’ ve been talking about the most important KPIs to make your company really Customer-centric. Recently we made a video about Customer Lifetime Value, and following on that one, today we would like to talk about another important metric, called CSAT, or Customer Satisfaction score.

CSAT measures the happiness of a customer with the products, services or experience provided by a company. It is usually a numeric score that goes from one to five, one to ten or from one to one-hundred.

If you enjoy this type of videos, subscribe to Riccardo Osti’s channel in YouTubeMeasuring Customer satisfaction scores allows your company to know if you did a good job so far, and it also helps to predict how sales will evolve in the future. It can be related to a single product or service, and in this case, it is very similar to the star rating that we find on e-commerce shops, or it can be related to the brand itself.

As we said, the score itself is a good source of insights, however, what also plays a role, is the quantity of available feedback. Many brands struggle to collect scores and feedback from their customers, and this is already an indicator that something is not just right. 

In fact, customers with high levels of satisfaction tend to interact with the brand more often than the ones that are not entirely satisfied. At the same time, it’s scary to know that 91% of dissatisfied customers don’t do business with the same company again. Therefore, if your organization doesn’t measure customer satisfaction, you won’t know how things are going and what will happen tomorrow.

On the contrary, you should make customers happy and give them an easy way to interact with you. This would lead to more interactions, more opportunities to predict the future, and more happy customers.

The most common way to collect customer satisfaction is the star rating form, like the one that you can find on Amazon or Google reviews, but can it also consist of regular numbers, smiley faces, a score on a different scale, you name it. It’s a very simple metric, that’s why we love it!

It doesn’t really matter which form do you use to measure Customer satisfaction, usually, the scale goes from one to five…whereby anything below 3.5 means unsatisfied customers. The sweet spot, would be between 4.4 and 4.8. Anything between 3.6 and 4 is from customers that are not dissatisfied but are not crazy about your product either. Scores above 4.8 are just not credible, therefore they are generally disregarded by future customers. Customers th at give a score between 4 and 4.3 are happy with your product and are close to becoming your ambassadors. That’s why you should invest to grow their satisfaction.

If you are wondering how to know what to improve in order to grow their score, you should know that the ideal CSAT survey should be composed of two elements:

  1. The numeric score
  2. An open-text box, where the respondent can explain why she gave that score

What’s great about it? That customers often write what you should do to satisfy them…so the only thing you have to do is to read what they say and plan your actions accordingly.

You can collect this type of feedback in several ways, where two simple ways to do so, are sending an email to your clients, and adding the possibility to leave the score directly on your website. 

If you collect a big amount of feedback every month, you can start considering automated solutions to analyze it. Which is exactly what my company does.

So are you ready to start measuring the CSAT and use it to improve your business?

For more interesting content, click here.

About Wonderflow

Wonderflow empowers businesses with quick and impactful decision-making because it helps automate and deliver in-depth consumer and competitor insights. All within one place, results are simplified for professionals across any high-UGC organization, and department to access, understand, and share easily. Compared to hiring more analysts, Wonderflow’s AI eliminates the need for human-led setup and analysis, resulting in thousands of structured and unstructured reviews analyzed within a matter of weeks and with up to 50% or more accurate data. The system sources relevant private and public consumer feedback from over 200 channels, including emails, forums, call center logs, chat rooms, social media, and e-commerce. What’s most unique is that its AI is the first ever to help recommend personalized business actions and predict the impact of those actions on key outcomes. Wonderflow is leveraged by high-grade customers like Philips, DHL, Beko, Lavazza, Colgate-Palmolive, GSK, Delonghi, and more.

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