A Guide to Customer Satisfaction (CSAT)
Customer satisfaction (CSAT) is a term that measures how products or services provided by a company meet or surpass a customer’s expectation. Customer satisfaction is important because it provides decision makers with a metric that they can use to manage and improve their businesses.
Collecting Customer Satisfaction Data
Post Purchase Surveys:
This method involves sending a survey immediately after a customer makes a purchase. Most often this is done on an email receipt for an online transaction. A link to a survey can also be included on a paper receipt.
The link to survey should have meta data attached to it for the customer. This will give you the ability to segment your data by product, location, or even age of the customer. SurveyKing offers a unique way to do just this. The collect responses page for a survey will walk you through this process.
General Surveys Not Related to a Purchase:
This can be a survey sent periodically to customers to check in on them. Maybe your customer base has found a new competitor the love. Maybe your customers still like your products or services but they can no longer afford them. Data collected here is crucial to identifying issues and to ensure continued growth of your business.
How to Leverage Customer Satisfaction Data
Increase Repurchases & Customer Loyalty:
Use a Net Promoter® Question in your survey to gauge loyalty. If your Net Promoter® Score is low, use the follow-up data in surveys to identify why. Increasing Net Promoter® Score will lead to more customers giving you positive word of mouth reviews in addition to referrals. The more loyal your customer base is, the more likely customers will come back for additional purchases.
It's a Competitive Advantage:
In a competitive business world, any advantage is important. We've seen from past data that higher satisfaction scores (Net Promoter® Scores) are from companies that have great customer service. If you offer the same product and prices as competitors, you may realize the competition has an edge with customer service. Surveys are great way to identify customer service problems. Identify issues and gain the advantage you need.
Now that you know your general target market, a more specific group of those people is a segment. With the dealership example, maybe you realize consumers in your area and target market love Audi but hate BMW. Both are luxury cars and people of the same income level drive them but this difference in product preference is a segment. Knowing this is ley to offer the correct brands or prices.
It Increases Customer Lifetime Value:
Customer Life Time Value (CLV) can simplay be definied as:
(Average Order Value X Order Frequecey ) - Cost of Customer Acqusition
You can see that the more frequent a customer purchases from you (provided acquisition costs are one time or stable), the higher your CLV will be. Since October 2016 over 4,500 customer satisfaction surveys (based on our premade templates) have been sent out on our system. The findings have shown the people who promote your brand, are on average making at least 3 more purchases per year than unsatisfied customers.
If you can identify areas that need improvement (e.g. product cost or customer service), you can increase your customers satisfaction, and in turn benefit from a higher CLV.
*The "0" option is asked in terms of previous purchases not including the current purchase for post purchase surveys
Reduce Costs from Customer Retention:
It is widely accepted that it costs six to seven times more to acquire new customers than it does to retain existing customers.
Your marketing team spends thousands of dollars getting the attention of prospects, nurturing them into leads and turning them into sales. Imagine if you maintain all your customers and got new leads from word of mouth. You could reduce your marketing budget and see an increase in sales!
Tips for Creating the Perfect Customer Satisfaction Research Survey
Use a Net Promoter® Score Question:
A Net Promoter® Question will gauge how loyal your customers are. Use this question as a benchmark year to year or even semiannually to track satisfaction.
Use Proper Follow Up Questions:
Maybe a certain age group isn’t happy with your company. Maybe the product they purchased is the sole reason they don’t like your brand and wont give you another chance. The follow up questions should be related to these areas. Once you get results back be sure to segment them to spot these trends.
Determine How to Send Your Survey:
Sending a post purchase survey is easy on our system! Want to just post a link on your web site or social media page? That's fine. Pick a method that works best for your target audience and objective.
Use Advanced Features:
Keep Your Survey Short:
No one wants to be overwhelmed. Keep your survey under 20 questions. Generally, 2 pages with 5 questions each should be enough to gather the data you need and not annoy your consumers.