DefinitionCustomer satisfaction measures the extent to which a customer is pleased with a company’s products, services and/or performance. In other words, it is the degree of the customer’s satisfaction with respect to their transaction and their overall experience with the company. Insights into customer satisfaction, such as those obtained through polls and surveys, can help a business determine the best way to improve or adapt its products and services. Customer satisfaction is:
- Subjective, because it is based on customer perception.
- Relative, because each customer has their own expectations: Customer A may be satisfied while Customer B may be dissatisfied.
- Dynamic, because expectations and/or perceptions change over time.
What are the most common customer satisfaction indicators?Customers are satisfied with a product or service when their need has been met effortlessly, enough so to make them loyal to the company. Thus, customer satisfaction is an important stage in building brand loyalty. There are three main indicators of customer satisfaction:
- CSAT (Customer SATisfaction), the classic indicator, which is usually a satisfaction score between 1 and 5 (in numbers, stars, etc.)
- NPS (Net Promoter Score), which measures the rate of customer recommendation, rated between 0 and 10
- CES (Customer Effort Score), which measures the rate of effort, namely the amount of energy the customer must expend to complete a specific action
- CSAT: The greatest strength of this indicator is its versatility. Measuring CSAT is the right choice to improve interactions because it can be broken down by topic, such as likeability, clarity and so on. It also has the advantage of being easy for your staff to understand.
- CES: This metric is especially useful for monitoring and optimizing processes and streamlining the customer journey. CES is an operational indicator that reflects what is happening on the ground. It is a great tool when deploying continuous improvement plans.
- NPS: The Net Promoter Score enables you to track brand perception and brand loyalty. If you analyze the breakdown of detractors (scores between 0 and 6), passives (7-8) and brand promoters (9-10), you can roll out ultra-targeted action plans for different client types. For example, you can pamper your brand ambassadors to stimulate word of mouth or systematically call back detractors to understand what went wrong. In some industries, NPS can also have a predictive function when employed within a relational framework.
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