How to Measure Customer Satisfaction

15 September 2023

Strong customer relationships are the benchmark of a successful company. Here’s our guide on how to measure customer satisfaction to get results.

advice : Leadership and Strategy

Strong customer relationships are the benchmark of a successful company. Along with a great service/product, effective marketing, and excellent team members, customers are the lifeblood of your business. And when their satisfaction with a service or product begins to waver, they’ll start searching for a competitor.

Stay ahead of the curve and prevent your customers from reaching that point by finding ways to measure their satisfaction and using that data to better understand your customers. While repeat service users, revenue, and high retention rates are excellent ways to mark customer satisfaction, the most effective way to truly know how customers feel about your business is to ask them.

Sending surveys to your customers provides you with invaluable data to help nurture your customer relationships. There are key indicators of customer satisfaction: overall satisfaction, intent to repurchase, loyalty, and attribute satisfaction.

Firstly, what can businesses do with survey responses?

While customer survey responses will help businesses understand how their customers feel towards them, the important next step is to act on those responses. This data can highlight problems in your business – these problem areas mustn’t go untouched and are addressed properly.

Secondly, it gives you a chance to analyse and evaluate your customer relationships – if they’re not strong, then there are ways you can strengthen those relationships.

And lastly, it provides the opportunity to source fresh ideas for new developments. This could be as simple as a website refresh that provides a more user-friendly experience – whatever it is, if it’s important to your customer, it’s important to you.

Frameworks for measuring customer satisfaction

We’ve established the importance of measuring customer satisfaction and the value of surveys, but several survey frameworks exist.

  • Customer Satisfaction Score (CSAT)

A Customer Satisfaction Score (CSAT) is an excellent tool for forecasting sales metrics, but it is better suited to measure short-term satisfaction. It’s simple – customers will rate their level of satisfaction on a scale, usually 1-5. The CSAT score is the percentage number of customers that are satisfied with your service.

  • Net Promoter Score (NPS)

A Net Promoter Score (NPS) measures customer loyalty. It’s a subjective question, but it still has value when broaching the subject of satisfaction with your customers. The question is simple: ‘On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?’

It’s a useful metric for gauging customer loyalty and retention. A NPS of 5 or under generally indicates that the customer had a poor experience, so it’s a good opportunity for you to nurture that relationship. Customers have plenty of options, and they won’t hesitate to work with your competitor.

  • Customer Engagement Score (CES)

The Customer Engagement Score framework focuses on the customer’s ease and experience. It measures how smooth, efficient, and hassle-free your entire service is to your users, from contacting customer service to finding a document they need. All touchpoints across the journey are important.

 Here are a few examples of questions used to calculate CES:

  • How easy is it to use our service?
  • How easy is it to speak to our customer service team?
  • How easy is it to find X document?

If a customer finds your service difficult to use or feels like there is too much effort required, they’ll quickly grow impatient.

Methods of measuring customer satisfaction

  • Email surveys

Marketing emails are a solid way to retrieve customer feedback. Make sure the email is personal and isn’t too long. It works well if the questionnaire can be built into a regular newsletter that the customer is already expecting.

  • Live chats

After a customer has interacted with your live chat system, integrate a survey system as soon as the conversation ends. It’s a great way to get immediate feedback about the customer’s recent experience, but it’s not the most useful tool for forecasting as it’s generally based on short-term satisfaction.

  • SMS

Sending a text is the most convenient survey method for respondents. UK adults check their phones up to 80 times a day, so it’s a great tool for capturing audience engagement. The limitation here is the lack of detail, as there’s only so much that can be put in a text. However, surveys should be short and sweet anyway, so an SMS survey can still be effective.

When is the best time to send a survey?

Many companies will send a survey every 6 months or once a year as a general round-up and to assess customer loyalty – utilising the NPS framework is particularly useful in this case.

However, there’s more that you can do to gauge customer satisfaction throughout the customer journey. The best time to send a survey is at a turning point in the customer experience. This could be when a customer is coming to the end of their free trial period, after completing their onboarding, or just before a subscription renewal. Similarly, if you want to know how your live chat feature is working, the best time to send the survey is immediately after the chat ended.

What is the most valuable way to measure customer satisfaction?

Each survey framework is valuable and should be implemented into the customer journey. However, the Net Promoter Score continues to be a benchmark of customer satisfaction. It indicates a positive perception of your business, and it can give your team measurable goals for improvement. It doesn’t tell you exactly why customers feel the way they do, but it gives you an opportunity to find out.

The information available on this page is of a general nature and is not intended to provide specific advice to any individuals or entities. We work hard to ensure this information is accurate at the time of publishing, although there is no guarantee that such information is accurate at the time you read this. We recommend individuals and companies seek professional advice on their circumstances and matters.