What is (CX) Customer Experience?October 31, 2018
Customer Satisfaction SurveyNovember 1, 2018
What Is (CSAT) Customer Satisfaction Score?
Today’s market is highly competitive. It is just as easy for your customers to go to your competitors as it is to come to you. Customer Satisfaction Score (CSAT or CSat) provides an organization with a matric to evaluate their performance and its influence in satisfying the customers. It also indicates the loyalty, repeat purchase intention and positive publicity inclination of your customers. A happy satisfied customer is more likely to promote your product within their friends and family circle.
The important aspect of using Key Performance Indicators (KPIs) such as CSAT is to know how to interpret them. In itself CSAT just gives you an arbitrary number. Before implementation there should be a clear customer management strategy in place to properly interpret the results and the know-how to use them to improve your customer’s experience and satisfaction level. If the scores come too low; there is a problem. An organization should be ready to implement some form of change / improvement to rectify it.
CSAT is also directly linked with positive revenue generation. Companies having high CSAT scores throughout the customer lifecycle are more likely to generate higher revenues as compared to low scoring ones. It would mean repeat customers, free of cost marketing through word-of-mouth and market benchmarking.
How does CSAT score works?
CSAT is an extremely diverse performance metric to use. Essentially it involves asking survey questions from customers and getting their responses on a scale of let’ssay 1-10 or 1-5 (a Likert scale). A key aspect is to find out when to approach your customer for such a feedback. These scores can then be gathered across the entire product / service portfolio and calculated as a percentage of total customers. The survey questions can be as diverse or as targeted as needed. It can be implemented at any stage of the customer life cycle like before product launch, before subscription renewal or even after completion of service provision. So the advantages include:-
- Quick and easy to gather customer responses
- Flexible questionnaire orientation
- Flexible response scale
- Cheaper to implement
- Easily relatable with competitor scores
Why is CSAT so important?
‘Unhappy customers’ are important than even ‘no customers’. In this digital age, an unhappycustomer can bring greater damage to an organization by easily propagating their bad experience through social media. Poor customer service costs ~$338.5 billion annually according to Forbes. CSAT provides a method to preemptively stop that. With insight that what is going wrong and where; an organization can initiate a damage control methodology or Customer Relationship Management (CRM) strategy. In a nutshell – CSAT helps transform disgruntled customers into potential ‘Brand Ambassadors’.
Customer satisfaction is an arbitrary concept varying from person to person and from product to product. CSAT provides a metric to generate an aggregate understanding of ‘satisfaction’ and lays the foundation to build an organizational change and customer relation management strategy. The most important aspect remains that what you would do with your CSAT scores. How to implement better processes that lead to more Willing-to-Pay (WTP) customers, how to improve the product in comparison with your competitors and how to overall improve, enhance and better the customer experience.