There is a special method according your business’ set of operations
Is customer always right? Although since Mr. Selfridge’s times there has been many companies guided by this precept, reality proves that customers, being only humans, not always are. However, what this phrase really means, is that, although they may be wrong in what they think, never in what they feels and is what we must focus on to achieve their satisfaction.
How happy our customers are with our product or service is what builds brand reputation, one of the intangible business values (along with culture and behaviors) that went from being 20% important to 80% in a digital world where people share millions of opinions about their customer experience every day.
Since ever, it has been essential for any company to have happy customers, but now this is much more important in order to maintain a good reputation. However, the larger a company is, the more difficult it can be to effectively measure this level of satisfaction.
Also, if we consider the fact that, according to Reputation Refinery, 96% of customers who have had a bad experience with your company will not complain, we can see how difficult it can be to measure their dissatisfaction. According to this same study, one thing is clear: of that percentage, 91% will simply never return.
For this reason, we present the 6 options that we consider the most effective KPIs (Key Performance Indicators) of this fundamental component for your company:
It has been the method par excellence since the last century. Although old, it is still one of the most effective ways to obtain data that helps you detect what needs to be improved and what should be maintained.
Use them sparingly: the more complex a survey is, the more information you will obtain for the benefit of your company, but no customer wants you to abuse their time for questionnaires, even less when all brands ask for ir, so try to keep them as short as possible.
Customers do you a favor by answering it, give them back: If you really need a lot of data about the shopping experience, you can offer them a small gift in exchange for taking the time to answer your survey. Likewise, try to guarantee the anonymity and protection of their data.
Take them as soon as possible: Post-service surveys are generally conducted immediately after the product or service is delivered because that way the experience is still fresh.
Do not trust yourself: keep in mind that most dissatisfied customers do not want to answer surveys so perhaps the worst experiences are those that did not end on paper or clicks.
Customer Satisfaction Score (CSAT)
Let’s say that a survey may be too long and therefore many of your clients will not answer it. The solution can be the Customer Satisfaction Score (CSAT) which usually with just one tap allows people to tell how happy they are with the service or product they received.
This metric is generally quite simple, since it consists of a question and a scale that usually goes from 1 to 3 or 1 to 10 for consumers to decide if they are not at all, little, fair, somewhat or very satisfied. It is very similar to a thermometer and precisely helps you establish a “general temperature” of your customers’ satisfaction.
Being simple and direct, they are one of the most popular options and one that most people are willing to respond to. However, that same thing makes the level of satisfaction difficult to estimate and that it is more subject to the user’s mood.
Once you have all the customer responses, the ratings for each question are added and the total is divided by the number of respondents and then multiplied by 10. That is the percentage of satisfaction in that area and it will help you to know what action to take in each of them.
Net Promoter Score (NPS)
It is similar to the CSAT but is focused on measuring how likely it is that a customer will recommend you on a scale of 0 to 10. It is not its only difference, it also measures long-term happiness or loyalty.
Based on the results, customers can be divided into:
Detractors: They chose between 1 and 6 so they probably share a bad review to their acquaintances about your brand.
Promoters: They chose between 9 and 10 so they can give a good opinion about your brand.
Passives: They chose between 7 and 8 and can be either detractors or promoters but simply will not be willing to recommend your brand.
Promoters can generate more revenue, but the costs of a detractor’s actions are much higher, so you should evaluate these measurements to take timely action.
Ultimately, both NPS and CSAT can complement each other to provide more complete and valuable information.
Customer Effort Score (CES)
Have you thought about measuring the effort your consumers had to put in to fulfill their desires? Well, this is what this KPI measures.
As you can imagine, it is mostly used by companies dedicated to providing solutions, such as technical assistance, subscribing to a cable TV system, banking or placing an online order as it helps determine the ease of using a product or service.
It is similar to the two previous surveys in the sense that they start on a scale that can go from 1 to 3 or even 1 to 10. However, you can have a CSAT where people talk great about the care provided by your staff but, if customers have to contact customer service constantly, it will be destructive to your CES and probably lose their loyalty there. Hence, we recommend measuring this index.
Customer Churn Rate (CCR)
If your company allows you to detect the number of customers that you have lost during a certain period, you have the golden opportunity to detect the satisfaction of your consumers and to be able to retain those you still have, since getting new ones can cost you seven times more.
Taking into account your rate of customer churn will allow you to detect any problems and take action to avoid user leaks that could affect your company.
If you have not done this, you only have to define a calculation period, for example, a semester. So, from the clients you had at the beginning of those 6 months, subtract the ones you have at the end of the semester, that’s the number of clients you lost. Then, divide it by the total number of clients you had at the beginning of the semester. The result is your CCR and it will help you define if you need to look for more data to detect why it happened and what to do to in order to reduce it.
First Call Resolution (FCR)
Finally, what has been our best KPI on CallFasst: It consists of measuring the ability of a contact center to solve customer problems on the first call, as this has a decisive impact on customer satisfaction.
This measure not only helps to improve customer satisfaction, but also to measure the efficiency of agents.
The basic formula for calculating this index is to divide the number of “resolved” calls in the first contact by the total number of contacts and multiply the result by one hundred. It seems simple, however, each company decides what other variables to consider for its calculation. For instance: when to consider which call can be considered resolved and how to verify that customers are not calling again because their problem has not been resolved, or maybe they are calling again but for another reason.
At CallFasst, we make use of our technology and training processes to increasingly determine which customer problems are legitimately resolved on the first call to have a faithful indicator that helps us detect their level of satisfaction.
As an additional tip, do not leave social networks out
Although we do not add them as an “official” metric, we must remind you that the fields of customer reviews and opinions are becoming the best indicator of a company’s customer satisfaction. Mainly because, unlike the metrics that we have seen in this article that can only be seen by the company, these opinions are visible to all users on the internet.
Even a user who may have answered a survey that had a good experience, may have changed his or her mind later and wrote a negative review, causing new potential customers to think twice before hiring your services.
Customer reviews and opinions on social media and product pages are such an important element in measuring customer satisfaction and building brand reputation that we will dedicate a full article to them later.