21 декабря 2009
Why Is Measuring Customer Satisfaction So Important?
Most contact centres measure customer satisfaction (CSat) as a metric. So why is it so important? And what are the benefits of doing so?
We answer both of these questions and investigate how we can obtain more actionable insight from the measure, after a quick recap of how you can calculate CSat.
Measuring Customer Satisfaction
While CSat is a metric that has been calculated for decades within many organizations, contact centres vary greatly in how they do so.
For example, we have known contact centres to calculate CSat by:
- Calculating a percentage score
- Happy, neutral and sad emojis
- Star ratings
- Applying the Net Promoter Score (NPS) method
- Analysing customer conversations
Whichever method we apply, we can use our findings to eliminate pain points, while learning, over time, how to create happier customers. This is the first area where csat (customer satisfaction) can be very important: benchmarking.
It’s a Great Measure to Benchmark
Keeping a close eye on customer satisfaction over time is great because it helps us to track how well any changes we have made to our business have been received by our customers.
As Neil Hammerton, the CEO of Natterbox, says: “We now have a wealth of choice in most industries – with traditional players and digital natives competing for market share. If these companies want to survive, they have to prioritize customer satisfaction and offer a premium customer service.”
“If companies don’t do this, customers will be quick to shout about their bad experiences online and ultimately turn to the competition.”
With this in mind, it is good practice to benchmark our CSat performance to assess how customers are responding to our changes, but it can also be applied to setting internal CSat benchmarks.
For example, if we have an overall CSat rating of 80%, we can set a target of reaching 85% in a certain amount of time. Then, we can focus on what we need to do to “move the needle”.
But don’t just focus on failures in trying to improve CSat, assess what we have done that has improved CSat and analyse how we can repeat such a success and create happier customers.
For more on this topic, read our article: Contact Centre Benchmarking – How to Get More From Your Metrics
You Can Explore the Relationship Between CSat and Other Metrics
As well as benchmarking CSat, we can analyse how a 1% rise in CSat impacts other metrics, which can be particularly useful if we want to build a business case. This is because our plans could help to generate or save money in areas that we hadn’t previously considered.
So, one particularly useful metric to assess, in regard to CSat when building a business case, is revenue, as this will help you to provide a projected ROI for your plans.
Mark Ungerman, Director of Product Marketing at NICE inContact, adds: “When CSAT increases, a firm will often experience a corresponding cost decrease in sales and customer service.”
“In addition, by lowering the number of unhappy customers, we can also drive up support costs because they place and escalate more support calls, which consume more time, resources and other concessions.”
One other key metric which can be analysed against CSat, to help build a business case, is customer lifetime value (CLV), because – in theory – when CSat improves, so does the lifetime value of a customer.
After all, a happy customer will be more inclined to make repeat purchases more often and to refer family and friends as new customers.