Sales, profit, and customer satisfaction are all key measures of how well your business is doing. It’s one of the most important metrics you can use to assess your performance. Happy customers often become brand evangelists without you asking. This can save you a lot of money on marketing and other advertising efforts. If you can create satisfied customers, you will continue to have a business year after year. It’s also one of the easiest metrics to measure. Here are five markers of customer satisfaction and why they matter:
1. Customer Satisfaction Score (CSAT)
The CSAT or customer satisfaction score is a measure of customer satisfaction. It’s a key indicator of customer loyalty, word of mouth, and future purchase intentions. Businesses with a high CSAT are more likely to experience repeat business, referrals, and greater levels of loyalty than those with a lower score. This means that the investment into creating satisfied customers through developing a great product, handling inquiries quickly, and resolving issues can make a big impact.
2. Customers make repeat purchases
If customers keep buying from you, it’s likely they are satisfied with some aspect of your business. Repeat purchases are a sign of customer satisfaction. They’re getting value from your business so much that they continue to return. In fact, repeat purchases can help grow your business by increasing the lifetime value of each customer. The more often they come in, the higher the purchase amounts, and the more touch points you have to create a positive experience with your customers.
3. Customers tag you in social media posts
Have you seen the reviews from people who buy from companies like Shein or watched what happens when people buy a book or product they love? They share it on social media. Not only that, but many of these customers will go out of their way to tag the company they purchased from just to tell them how much they love whatever it is that they bought. If customers are tagging you in social media posts, that’s a good sign they’re satisfied with your product or service. It also means they’ve had a positive experience with your customer service team.
4. Customers respond positively to surveys
More and more companies are sending surveys as a way to get feedback from their customers. Surveys are a great way to gather information about your customers and their experience. This can help you improve the customer service experience and make sure that your customers are happy with what they’re receiving. They can share what they like and don’t like, which can help you make changes to your products in the future if needed.
5. Customers tell their friends (Net Promoter Score)
The Net Promoter Score (NPS) is a simple way of measuring customer satisfaction by asking one simple question. You’re going to ask your customers how likely they are to recommend you to a friend, colleague, or family member. Make it easy. If they score you at a 1, that will mean something like, “not in a million years.” If they give you a 10, that should mean that they will always recommend your products or services to anyone they know who needs them.
Why customer satisfaction matters
Do you want to keep running a business? Bad reviews can cause a significant drop in customers, especially for a smaller business. Customer satisfaction is a key indicator of how well your business is doing. It’s important to understand what makes customers happy and unhappy. If you’re not sure why your business is stagnant, consider finding out whether your customers are truly satisfied or not with the service you are providing.
Conclusion
If you’re looking to grow your business and increase customer loyalty, customer satisfaction should be one of your top priorities. While you probably spend a hefty portion of your budget on marketing, you could easily make all the wrong moves if you don’t know what your customers want in the first place. Find out what they love, what they hate, and how good their interactions are with you. Pay attention to social media conversations, third-party review sites, and other key customer satisfaction metrics. If you don’t know where to start, you can hire help to gather all of this data for you. Use these numbers to build a better brand and make your customers happier.