Customer satisfaction, customer retention, and customer loyalty – these are all cornerstone factors that every business covets to ensure they scale within the competitive market. However, that positive result does not always happen for the mere fact that everyone has different motives, tastes, and objectives that can either lure or deter people from you. In short, some customers may be happy, while others might make a conscious effort to stay away from your brand for one reason or another.
Now, before you panic about negative reviews or feedback, the key thing to understand here is that opinion differences are inevitable, and you cannot make every customer happy across the board. But that also does not mean you can’t learn from it quantitatively to optimize your customer satisfaction, which is where CSAT comes into play.
CSAT (Customer Satisfaction) score is one of the most prominently used customer experience metrics used industry-wide to gain quantitative data on how satisfied customers truly are and raw feedback explaining why. This metric data is typically collected in the form of a numerical survey sent out after an interaction. The results you gain back can help you pinpoint specific issues throughout your business to increase customer loyalty, customer retention and improve overall customer satisfaction. For example, if 90% of your customers rated you positively (5 on a 1-5 scale) on communication but only 40% rated you well on customer support, that is a clear indication that you should look at enhancing your customer support approaches.
The real question now is what does a good CSAT score look like? In general, the formula to calculate a CSAT is in the form of a percentage. To get that, all you need to do is divide the number of satisfied/happy customers by the total number of survey responses you received, and then multiply that by 100 to get your CSAT score. According to the American Customer Satisfaction Index, any business throughout the industry sectors that has a CSAT score of 80% or above, you are doing exceptionally well.
Like the years before now, customers have and will always be a leading priority for businesses to excel. Customer retention and customer loyalty are the backbones for businesses to succeed long-term, which is why measuring customer satisfaction in 2022 is still a highly valuable process for organizational pipelines to monitor. However, the differences moving forward into the future is how those approaches will gain the necessary information they need. For instance, there have been significant changes in customer satisfaction behavior due to the pandemic (higher desire for more automation, more focus on UX web designs, hands-free technology, etc.) that can impact your score – making them key things to now add into surveys to see how well you are doing in these areas alongside traditional questions.
In general, you can and should use the standard customer service, product quality, and culture questions you would typically leverage in prior years. But to remain competitive in 2022, those new critical points should be measured and tracked as CSAT modernizes and evolves. It is also important to note that today, there is a greater emphasis on measuring both internal and external customers (as opposed to just internal in prior years) to not just gain personal brand insight, but insight from competitors to see just how happy or unhappy their customers are so you can pick up where they lack. Some of the popular ways you can do this include:
Keep in mind that these approaches are very powerful at capturing customer satisfaction rates and trends, but they are only as effective as you create them to be. This means being mindful of the type of questions you ask, being diligent in monitoring and performing follow-ups, and taking actions where scores are lower to help drive them up. For some helpful guidance on the types of questions you can ask, you can find that here.
In summary, it is no secret that customers are the most fundamental asset to a business within any industry. Even more, customer satisfaction, customer retention, and customer loyalty are the foundation that pushes a brand forward. And though word of mouth and repeat customers can certainly be useful in seeing how well you are doing, nothing is as concrete and measurable as quantitative data.
In the end, the 21st century is all about customer-centric ideologies, and the best way for you to know if your company is up to par with the expectations is through strategic survey work and measuring parameters, as this can greatly improve your customer value while simultaneously reducing your churn rate. Overall, use these measuring tools to your advantage and do your due diligence on taking the proper actions steps based on the percentages you find. And above all, have the peace of mind knowing that if your score is 80% or above, you are doing just fine.
If you are looking for ways to improve CSAT and retention and loyalty, request a free demo to see how Interai can boost your customer service performance.