Are my customers happy with the service they receive? This is the question that keeps many business owners up at night. There are numerous ways to collect feedback, but what data is most important to growing and improving your business? The focus of any customer feedback program should be collecting relevant data that improves the experience. Additionally, regardless of how you decide to collect feedback, the process should be simple and easy for the customer. Below are three customer satisfaction metrics we think all businesses should be tracking.
Are you satisfied?
This question might seem too simple, but it is probably the most important thing to ask customers. You shouldn’t get cute when trying to gauge customer satisfaction. Get right to the point and ask them if they are satisfied with your business.
Timothy Delaney, vice president Customer Success at Directworks, noted in an article on CIO.com that the easiest way to gather data on customer satisfaction is by sending a simple binary survey at the end of each support interaction asking customers to indicate if the experience was “Good – I’m Satisfied or Bad – I’m Unsatisfied.” Depending on the customer’s answer, you can trigger a thank you email or follow-up to resolve whatever issues may have arisen.
From this data, you can calculate a rough customer satisfaction score by subtracting the percent of unsatisfied customers from the percent of satisfied customers. This number won’t be as accurate as a net promoter score (NPS) because there are only two possible answers to the question, but it will be a good indicator of how satisfied your customers are in general. This is especially helpful for businesses that don’t have the budget to conduct a full-blown customer satisfaction survey.
Would you recommend?
Speaking of net promoter scores, the question of would you recommend a business is the basis for calculating that score. When calculating a net promoter score, you ask customers to rate on a scale of 1 to 10 how likely is it that they would recommend a business. You then break those numbers down into three categories based on how they rated the business – detractors (0-6), passives (7-8), promoters (9-10). Then you take the percentage of detractors subtracted from the percentage of promoters to get the NPS.
Similar to the CSAT score, NPS will give you a good idea of how your customers feel about you generally. For example, if a business has a negative NPS its customers are unhappy for the most part. Having this knowledge can help you identify service or product issues customers are experiencing and work to improve them.
You don’t need to conduct a net promoter survey to ask customers if they would recommend your business. A good online review management platform will use that question as an indicator of what the best method to collect feedback is, whether privately or on an online review site like Google or Facebook. Asking the question this way will let you know how your customers feel about you on a high level. Additionally, it will give you the opportunity to collect in-depth feedback via reviews, which will help improve your business operations.
How likely are you to do business with us again?
This final question is a measure of loyalty. How loyal your customers are is a good indicator of the health of your business. If you aren’t seeing a lot of repeat business, you should reassess what you are doing and look for ways to improve.
There are a number of different ways to measure the loyalty of your customers, including customer lifetime value and repeat customer rate. Knowing the cost to acquire a customer and the revenue that customer will bring in over time is very valuable. This knowledge is especially helpful when it comes time to make plans and projections.
Measure customer satisfaction metrics with Podium
Request a demo to see how Podium’s cloud-based solution can help you use text messages to invite all of your customers to review your business. Podium’s efficient, mobile process can help your business build a strong online presence on the sites that matter most. This will, in turn, improve local SEO and ultimately boost revenues.