6 Proven Methods for Measuring Customer Satisfaction (2022)

91% of unhappy customers will never buy from you again ( Liveworkstudio ). The number one objective of any business should therefore be to create happy customers. Businesses that do, grow and flourish; those that don't, stagnate and perish.

But for the #1 objective it's poorly presented in companies' metrics to track. This is partly because measuring customer satisfaction is not as straightforward as e.g. measuring revenue streams or website visitors, making it hard to set up clear goals.

There are, however, some great methods and metrics out there designed for exactly this purpose. Let's go through some that you can apply in your business today.

1

Customer Satisfaction Surveys

The customer satisfaction survey is the standard approach for collecting data on customer happiness. It consists of asking your customers how satisfied they are, with or without follow up questions. Three useful variations:

  • In-App Surveys
  • Post-Service Surveys
  • Long Email Surveys

In-App Surveys. With this you integrate a subtle feedback bar inside your website, with generally not more than one or two questions. It’s one of the methods with the highest response rates, thanks to the fact that the customer is asked for her opinion while she’s engaged with your company. In-app surveys are especially handy to measure some of the standard customer satisfaction metrics, like NPS or CES covered below.

6 Proven Methods for Measuring Customer Satisfaction (1)

The 8 Core Principles of Good Customer Service

Performance in any field is guided by a few core principles. Here are the ones governing the quality of customer service.

First principle thinking

Good tools for in-app customer surveys are Floq and SurveyMonkey .

6 Proven Methods for Measuring Customer Satisfaction (2)

SurveyMonkey offers some great tools for implementing an in-app survey on your website.

(Video) How to Measure Customer Satisfaction like a Pro?

Post Service Surveys. This type of survey focuses on the customer’s satisfaction with a specific service she’s just received. You ask it right after the delivery, when it's still fresh in the mind. This can be done in email support with a rating link in the mail, or in live chat with a rating view that appears after the chat. It can also be done over the phone, but it's somewhat problematic because it takes more time from the customer, and she might not feel comfortable sharing an unfiltered opinion.

6 Proven Methods for Measuring Customer Satisfaction (3)

Post-service satisfaction surveys are a built-in feature of most live chat solutions.

In certain cases, you have a face-to-face touchpoint with your customer after the service, for example in a restaurant. This is an excellent opportunity to collect feedback on the spot using a tablet. A great iPad survey tool is Survey Anyplace, which also offers offline surveys : you can collect survey responses without internet connection and sync the data afterwards.

Email Surveys. The above survey methods aren't suitable for in-depth insights about your customer happiness. Why are they happy or unhappy? Email surveys, on the other hand, are a good tool for this. Although they have a downside of low response rates (10% - 15%, according to SurveyGizmo ), they do allow your customer to take their time in answering multiple questions. Google Forms is an excellent free tool for this purpose. Find a survey template here . Also check out this list of Survey Questions Do's and Dont's .

6 Proven Methods for Measuring Customer Satisfaction (4)

Google Forms allows you to create powerful surveys, fast.

2

Customer Satisfaction Score (CSAT)

This is the most standard customer satisfaction metric, asking your customer to rate her satisfaction with your business, product, or service. Your CSAT score is then the average rating of your customer responses.

The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger range is not always better, due to cultural differences in how people rate their satisfaction. An article in Psychological Science , for example, showed that people in individualistic countries choose the more extreme sides more frequently than those in collectivistic countries.

An American is more likely to rate a service as “amazing” or “terrible” than for example a Japanese, who will stick to “fine” or “not satisfactory." Such differences are important to be aware of with an international customer base.

6 Proven Methods for Measuring Customer Satisfaction (5)

The US government gathers feedback with a simple emoji-based CSAT question.

(Video) increase Customers Satisfaction 2021 [6 Proven Steps]

Simpler scales are more robust to cultural differences and more suited for capturing service quality. This is why the US government uses a simple emoji-based CSAT question for its feedback, and why the live chat survey example above uses a 5-star rating.

The charm of the CSAT metric comes from its directness. The downside, however, is that satisfaction is hard to estimate, even for the customer. It’s directed at a sentiment , which is fleeting and mood dependent.

3

Net Promoter Score (NPS)

The Net Promoter Score (NPS) measures the likeliness of a customer referring you to someone, and it’s probably the most popular way of measuring customer loyalty . Customer are asked how likely they are to recommend you on a scale from 1 to 10.

6 Proven Methods for Measuring Customer Satisfaction (6)

The strength from NPS is that it's not about an emotion of satisfaction, but about your intention of referring – which is easier to answer. It cuts down to the question of whether the product is good enough to put your own reputation on the line.

Calculating your NPS score is quite easy. Take the percentage of respondents who fall within the ‘promoter’ category (10 - 9) and subtract the percentage of ‘detractors’ (0 - 6).

6 Proven Methods for Measuring Customer Satisfaction (7)

NPS data is easily gathered through in-app or email surveys.

Some tools for measuring NPS work with email questionnaires. Examples are Trustfuel NPS (free) and Promoter.io (paid). Others work with in-app surveys, like Wootric (freemium). The Net Promoter Network offers a a benchmark report to give you insight about how you compare in your industry.

One added benefit of NPS is that it directs your customers’ attention towards referring, an option they might not have thought about before.

4

Customer Effort Score (CES)

With this method, customers aren’t asked for their satisfaction or likeliness of referring, but for the effort it took them to have their issue solved — generally on a scale from 1 (very low effort) to 7 (very high effort).

Your aim is, of course, to lower this average score. According to CEB , 96% of customers with a high effort score showed reduced loyalty in the future, while that was the case with only 9% of those who reported low effort scores.

6 Proven Methods for Measuring Customer Satisfaction (8)

Source: CheckMarket .

(Video) Cambridge IELTS13 Test6 {CUSTOMER SATISFACTION SURVEY ,Sophie Bird} LISTENING TEST WITH ANSWERS

This idea for a customer satisfaction metric was introduced in the Harvard Business Review article Stop Trying to Delight Your Customers .

It challenges the accepted idea that excellent customer service equals exceeding customer expectations. Through their analysis, the authors found that customers are much more likely to punish bad service than to reward good service.

They showed that the costs of exceeded customer expectations are high, while the payoffs are minimal.

6 Proven Methods for Measuring Customer Satisfaction (9)

Userlike: Instant chats, long-term customer relationships

Over 10,000 companies like Toyota and Hermes trust Userlike to connect with their customers every day - via website chat, WhatsApp, chatbots and more.

Learn more

Instead of putting all that effort into delighting the customer, the authors argue it should be invested in making the customer experience and problem resolution as easy as possible .

The authors found that the the ease of having your problems resolved was a much better predictor for satisfaction than having expectations exceeded. Improve the customer experience by easifying your customer’s journey.

This new service philosophy requires different measurements, which is why the CES was developed. They showed that CES is superior to CSAT and NPS in predicting consumer behavior .

Don’t ask, “How satisfied are you with this service?” ; ask, “How easy was it to get in contact/make a purchase/have your issue resolved?”

(Video) Everything About Customer Service | 5 Strategies | Dr Vivek Bindra

Relevance is crucial here. The time to pop the question is right after your customer had her experience. Otherwise, the ease of the experience might have been forgotten. It can be asked in-app (ease of the website/app experience), via live chat , or via email (ease of the service).

CheckMarket offers a free template to create your own CES survey. With some tweaking, many customer service tools are suited for this purpose. Read more in our post on how to get to the right customer effort score question .

5

Social Media Monitoring

Social media has had an immense impact on the relationship between business and customer. Where before, a great or poor service experience would maybe be shared with the closest family and friends, social media offered an outlet and reach to potentially millions of people.

6 Proven Methods for Measuring Customer Satisfaction (10)

Mention provides you with real-time updates on brand mentions.

Because of that, it’s the perfect place to hear what your customers are really thinking about you. If you have the right tools to track this, that is.

Facebook and Twitter are of course relevant platforms to track, but also platforms like Quora, Yelp, TripAdvisor, etc.

Some helpful tools:

  • Google Alerts . This Google service notifies you when your brand appears in a prominent position.
  • Mention . A powerful freemium tool that gives you a heads up whenever your brand is mentioned on the web. It’s especially handy for social media tracking, for which Google Alerts is not suitable.
  • Socialmention . A free tool that analyzes social mentions of your brand on the web. Among others, it shows the likeliness of your brand being discussed on the web, the ratio of positive to negative mentions, the likelihood of people mentioning your brand repeatedly and the range of influence.

6

Things Gone Wrong

This metric originates from the Lean Six Sigma approach , and measures the number of complaints, or "Things Gone Wrong," per 100, 1000, or up to a 1,000,000 units of survey responses, units sold, or other.

The standard approach to measure TGW is through complaint sections in customer surveys, but you could also maintain internal metrics. In the worst case scenario your score is 1 or higher, meaning that you get at least 1 complaint per chosen unit.

6 Proven Methods for Measuring Customer Satisfaction (11)

Nobody likes things going wrong, which is exactly why we should focus on it.

(Video) 6 Proven Techniques to WOW Your Guests | Ep. #019

Once you start measuring, you can start optimizing. And optimizing your customer satisfaction is the best investment you can make.

For related topics on measurement methods, check out our posts on measuring customer loyalty , how to measure service quality , and customer service KPIs .

FAQs

What are the six measures of customer experience? ›

According to The State of the Customer Experience survey that we did earlier in 2018, all companies track customer experience using one or several of the 6 worldwide recognized customer experience metrics: Net Promoter Score (NPS), Customer Satisfaction (CSAT), Churn rate, Retention rate, Customer Lifetime Value (CLV) ...

What is the best measure of customer satisfaction? ›

Customer Satisfaction Survey (CSAT)

As the most commonly used and straightforward method of measuring customer satisfaction, the CSAT survey asks customers to rate their satisfaction directly on a scale.

What are the 4 key metrics of customers satisfaction? ›

4 meaningful customer satisfaction metrics
  • Net Promoter Score (NPS) NPS was developed in 2003 by Frederick Reichheld as a way to predict a customer's future loyalty. ...
  • Customer satisfaction score (CSAT) ...
  • Customer effort score (CES) ...
  • Churn or retention.
23 May 2022

How do you measure good customer experience? ›

CX metrics are the key to effectively measuring the customer experience. You can use a combination of surveys, retention and churn rates, and customer trend data to determine how satisfied your customers are at every step of the journey — and whether or not they're willing to come back or refer your brand to others.

How do you measure good customer service experience? ›

Top Metrics to Measure Customer Experience:
  1. Customer Effort Score (CES)
  2. Customer Satisfaction (CSAT)
  3. Net Promoter Score (NPS)
  4. Customer Retention Rate.
  5. Customer Churn Rate.
  6. First Contact Resolution (FCR)
  7. Average Resolution Time (ART)
  8. Customer Referral Rate.
23 Feb 2021

What are the tools for measuring customer satisfaction? ›

Customer Satisfaction Score (CSAT)

It's a tool to measure how a customer feels at the moment. The customer satisfaction score is the most common method used to gauge consumer sentiment. You can calculate CSAT using a scale of 1-3 to 1-10 and anything in between.

What are the most important factors in measuring customer satisfaction? ›

The Most Important Customer Satisfaction Metrics

Commonly used metrics for assessing customer satisfaction include Customer Satisfaction Score (CSAT), Net Promoter Score (NPS) and Customer Effort Score (CES).

What is KPI for customer service? ›

Customer Service Key Performance Indicators and Metrics

A customer service KPI or metric is a performance measurement that is used by customer service teams and by the customer support management to monitor, visualize, analyze and optimize customer relations by taking advantage of an advanced 360-degree customer view.

What are the four 4 customer satisfaction survey processes? ›

There are four main types of customer satisfaction surveys: Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES), Product-Market Fit.

How do you measure customer satisfaction without surveys? ›

Besides the use of surveys, brands can measure customer satisfaction by monitoring and analyzing other metrics such as social media sentiment (to see what customers are saying about the brand), frequency of complaints or enquiries, level response to loyalty promos (coupons or seasonal sales) and frequency of repeat ...

What is a CX measurement framework? ›

Customer Experience Measurement is the practice of measuring customer experience at all touchpoints along the customer journey. It includes all customer actions. Before we start with the nits and grits of measuring CX, it is important to understand the importance of measuring customer experience.

How are customer service standards measured? ›

Collect Feedback

Request your customers to indicate the level of service with an easy-to-understand standard. Some surveys use the "One to Five" standard, where service is measured on a scale of one to five, with one being worst service received and five being best service available.

How do companies measure CX? ›

Customer satisfaction (CSAT) If you're measuring CX, it makes sense to know how satisfied your customers are with your products or services. CSAT measures customer satisfaction based on a question: 'How would you rate your overall satisfaction with the [goods/service] you received?

How customer service excellence is measured? ›

The correct answer was: The customer satisfaction score, or CSAT, which measures your customers' feelings immediately following an interaction with a customer service agent, using a survey.

How do you measure service efficiency? ›

Tallying up the number of complaints you receive from customers in a given period is a straightforward way to measure customer service effectiveness. It also is useful to count complaints that make it to the managerial level.

How is customer satisfaction measured in CRM? ›

Customer satisfaction score (CSAT) uses a scale of one to five. It is used to gauge customer satisfaction with a particular topic or product. Customers rate their satisfaction as: 1) very unsatisfied, 2) unsatisfied, 3) neutral, 4) satisfied, and 5) very satisfied.

What are customer metrics? ›

Customer metrics refer to measuring factors or tracking them about your customers. These factors are metrics that affect the company's growth and revenue through customers. Customer metrics can be measured with customer satisfaction, loyalty rates, retention rates and much more.

Is CRM a KPI? ›

A CRM Key Performance Indicator (KPI) is a standard measurement used to evaluate the process of delivering satisfaction to all of the customer needs from your organization. KPIs can be set up across key activities that are critical to the satisfaction of the customer.

Why do we measure customer experience? ›

Measuring the customer experience is one of the most important initiatives a company can undertake. That's because when it's appropriately collected and acted upon, feedback can be used to improve your products and services, refine your marketing message, inform your sales strategy, and more.

How can you measure an experience? ›

You measure experience by first identifying the areas you would like to gain an understanding of. Next, you invite feedback from those who have the most knowledge. If you are looking to measure the experience of your employees, you will put together a survey that asks the key questions about their employee experience.

What is a CX measurement framework? ›

Customer Experience Measurement is the practice of measuring customer experience at all touchpoints along the customer journey. It includes all customer actions. Before we start with the nits and grits of measuring CX, it is important to understand the importance of measuring customer experience.

How do you measure customer insight? ›

Form a strategy for collecting customer data Analyze survey results and track customer feedback across multiple channels and touch points to measure what your customers value. Ask meaningful, consistent questions, and get help from frontline employees to encourage customers to provide feedback.

How are customer service standards measured? ›

Collect Feedback

Request your customers to indicate the level of service with an easy-to-understand standard. Some surveys use the "One to Five" standard, where service is measured on a scale of one to five, with one being worst service received and five being best service available.

What are customer journey metrics? ›

What are customer journey KPIs? Customer journey key performance indicators (KPIs) are metrics that show businesses whether they're meeting their goals during all stages of the customer journey: awareness, consideration, decision, retention, and advocacy.

What is a CX score? ›

Customer experience (CX) is the cumulative impact of every touchpoint throughout the customer journey.

What is Gartner customer experience? ›

Gartner defines customer experience as the customer's perceptions and related feelings caused by the one-off and cumulative effect of interactions with a supplier's employees, systems, channels or products.

Videos

1. Customer Loyalty Program || Complete Video by Rahul Govil
(Rahul n Neel)
2. 4 Proven Customer Retention Strategies
(eCourierz)
3. Net Promoter Score Calculation | Will Your Customers Help You Grow?
(Eric Andrews)
4. When and how to setup your CS OPERATIONS
(CSM Practice)
5. Robert Waldinger: What makes a good life? Lessons from the longest study on happiness | TED
(TED)
6. Cambridge IELTS Book 15 Listening Test 4 | with Answer keys | Best ielts listening practice test |
(English with Abid)

Top Articles

You might also like

Latest Posts

Article information

Author: Ouida Strosin DO

Last Updated: 11/22/2022

Views: 5626

Rating: 4.6 / 5 (56 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Ouida Strosin DO

Birthday: 1995-04-27

Address: Suite 927 930 Kilback Radial, Candidaville, TN 87795

Phone: +8561498978366

Job: Legacy Manufacturing Specialist

Hobby: Singing, Mountain biking, Water sports, Water sports, Taxidermy, Polo, Pet

Introduction: My name is Ouida Strosin DO, I am a precious, combative, spotless, modern, spotless, beautiful, precious person who loves writing and wants to share my knowledge and understanding with you.