The Goal of Customer Satisfaction With Examples and Best Practices
So you ask why should you care about your user satisfaction, customer satisfaction, or whatever you want to call it?
That’s an excellent question.
“Go the extra mile”.
We have all heard about that. This is the very common jargon.
But it’s only the tip of the iceberg.
In this article, I want to dive deep into the nitty-gritty of customer satisfaction. Why it matters. How to deal with it, and what are some of the best practices with real-life examples.
So, without further ado, let’s get right into it.
Customer Satisfaction Basics
What is The Purpose of Customer Satisfaction?
As simple as it sounds, customer satisfaction metrics refer to how happy customers are with the service they receive.
But happiness is subjective, it is related to how I feel about the product, service or experience. Thus, it is fair to say that customer satisfaction is closely related to customer experience.
Customers are willing to pay more for an upgraded experience. They want you to go the extra mile and provide them with a better service.
Yes, better experience and thus better customer satisfaction help you price up your product or service.
It not only does that but also brings you more inbound customers.
So we can’t talk about customer satisfaction without examining the customer experience.
“Customer experience is the sum of your customer’s experience with your brand across all touchpoint on the customer journey, from initial discovery through conversion.”
Back to our question. What is the goal of customer satisfaction?
1. Improve Loyalty and Reduce Churn
First and foremost, the happier your customers are, the more likely they are to buy again from you, ie, build loyalty with your brand. The more money they will spend with you and in your company. This ultimately reduces your churn rate and improve your revenue figures.
2. Grow Your Customers Base
These delighted customers will not only spend more but also spread the word and tell their friends about your brand. You are ultimately growing your customers base with an initial pool of happy customers.
3. Build Social Proof
90% of consumers say buying decisions are influenced by online reviews.
The more satisfied your customers are, the easier it gets for you to nudge them to leave you a review.
As a matter of fact, reviews also impact your SEO ranking. Google considers that the more reviews and testimonials you have, the more relevant it is for them to feature your brand on relevant search terms. Use a tool such as Nightwatch for rank tracking and time will tell.
4. Reduce Spending
Happier customers mean easier customer support. In other words, dealing with fulfilled people on the support line is easier. They cause you less hassle and your customer support agent are more efficient.
Aside from that, upselling existing customers becomes a no-brainer, and you increase profitability.
5. Build Employee Happiness
If you’re able to achieve great customer satisfaction, you’ll eventually cut down your number of bad reviews, and bad comments from the customers.
This, in turn, contributes to your overall employee happiness and helps you build a trustful company, on the path to success.
We know why we should care about it. But how do we go about measuring it?
How To Measure Customer Satisfaction?
There’re tons of satisfaction metrics you can be looking after. But you don’t have to keep track of all of them.
In fact, at Feedier, we are advocates of using an overall satisfaction ratio that goes well beyond the usual Net Promoter Score used by most Software as a Service.
Don’t get me wrong, the NPS is an efficient and well-thought metric, but it is not enough for us. It is also very hard to effectively measure as you’re asking someone the likeliness of him/her recommending your brand in the future, which can vary a lot from one day to another.
The customer experience is omnichannel. You have to be present everywhere and measure customer happiness at each point of the journey.
Discover on your own
Knowledge is important, but only when put into the practice. Test everything in our academy right inside the LiveAgent.
Some of the common interaction we see at Feedier where it is important and interesting to ask for feedback and measure the satisfaction:
- After a purchase online or in-store (using tablets or using CRM automation)
- After an interaction with your customer support team
- A few weeks after the purchase (it highly depends on your product/use-case)
- When you notice changes in activity in your user’ account
With the growth of marketing automation tools and the progress of customer feedback tools, it gets easier to get the ball rolling and automate the process on all the way.
Creating a closed feedback loop, automating the feedback request but also informing your team about what is going on is a piece of cake.
Take advantage of it. Act now.
Customer Satisfaction Best Practices
Being able to fulfill your customers with a great experience contributes to the overall customer satisfaction performances.
As it was put by Ted Smith, director of Market Insights at ZenDesk in an interview on Inc.’ website, the best-performing companies perform best because of -- or thanks to -- their ceaseless desire to provide a top-notch customer experience.
One of the themes we see among companies that are really excelling is that customer experience is a key part of their business strategy. It's not viewed as sort of a cost, but rather it's an opportunity to differentiate their product and service. And so the conversation isn't, "How do we support our customers?" But it's rather, "How do we constantly improve the experience for our customers so that we can make them increasingly loyal and drive incremental value for our business?"
In a nutshell, it comes down to creating a feedback-friendly culture, and educating your customer success team about some of the best practices:
1. Be proactive
Integrate your tools together and implement notifications so the team gets alerted whenever something is worth looking at (eg. bad feedback comes in).
Livestorm is a perfect example of proactive customer success. They seek feedback right after you have ended a webinar on their platform, as a host.
As it was mentioned before, measure satisfaction at different touchpoints: support, in-app, after purchase, etc.
3. Be Personal
The challenge is, how do you handle it at scale?
There are tools with great user experience, such as Loom, that lets you shoot a video in 3-clicks. But there are also other solutions propping up.
Read the below post on Indie Hackers.
One thing remains certain: personalization is key.
The below post written by Aazar from Userpilot sums it up very well.
“As a SaaS company, we’ve seen two things that have helped improved satisfaction. Work with your customers and find out the numbers related to your product and show the “outcomes”. Our customers' satisfaction has improved when we showed them increase in their activation, conversion and retention rates. So, focus on outcome-based results and show the before and after. Your customers will already start appreciating you. Secondly, our chat support response is less than 5 minutes. We give 14 hours of chat support each day. That has been our clear differentiator. If you’re available for your clients immediately, they know we’re there to help and resolve their questions. I’d definitely recommend this strategy too.”
- Aazar, Head of Growth, Userpilot.com
4. Handle bad comment and negative feedback with kid gloves.
The HEARD framework inspired by Disney’s approach is a good start. It basically states that you should: Hear, Empathize, Apologize, Resolve, Diagnose.
That’s how Walt Disney Company is dealing with its 135M people passing by every year.
5. Get Deep into the Why
It actually goes beyond proactivity, it’s also about understanding the why and going deep into the hidden aspect of the problem.
You want to understand the true pain points of your customers in order to properly satisfy them. There are different methods to go about that: from customer feedback survey using tools such as Feedier or SurveyMonkey, to customer discovery call or interview.
Foti, the founder of Growthmentor does it very well. He constantly seeks feedback and spends time understanding where his mentors and mentees are coming from, and how they feel about the platform.
6. Be Original
The icing on the cake you asked? Being diverting, original, and timely.
A great example I have found is Revolut keeping the users informed about the Brexit and what that means for the British bank accounts.
All-in-all, there is no winner takes all. But it’s fair to assume that the success remains for those who succeed in customer satisfaction.
Consider that by 2020, customer satisfaction is poised to be the biggest differentiator between brands. Bigger than the price point.
You’ve still got time to close the customer feedback loop, but you need to act soon.