Every business wants to satisfy its customers. Simply put, people who are satisfied with their interaction with a business are more likely to stick around and become repeat customers. As a result, customer satisfaction is one of the best ways of predicting the future performance of a company.
But how do you measure customer satisfaction? This is where the Customer Satisfaction Score (CSAT) comes into play. The gold standard measurement when it comes to assessing satisfaction rates, CSAT scores can be calculated in a number of ways – from the use of surveys to behavioral analysis using AI predictive analytics and other methodologies. All of this is in service of determining just how satisfied customers have been with a particular customer experience.
Here are five ways that knowledge of CSAT can be a help when it comes to your business:
#1. Customer Satisfaction Score can help identify satisfied customers
This is the happiest usage of CSAT: to find those happy customers who have loved their business interactions with your company. Spotting satisfied customers give you the chance to go the extra step and turn a positive experience into the makings of a long-term loyal customer. For example, when you’re able to identify satisfied customers, you can then use this information to create loyalty programs – or to seek referrals that get satisfied customers to encourage others to sign up, often in exchange for benefits for themselves. Knowing your satisfied customers may also give you the opportunity to dig into this data to try and decipher what experience it was that made them so happy with your service.
#2. Customer Satisfaction Score can help identify unsatisfied customers
This isn’t quite as self-congratulatory backslapping as identifying happy, satisfied customers. But identifying those unsatisfied customers is no less important. Unsatisfied customers are unlikely to come back to give you a second chance, thereby losing you possible repeat business. Maybe even worse, they can poison your reputation for other potential customers – maybe by publishing bad customer reviews or spreading negative word-of-mouth alarms.
These can have a significant impact on companies, even threatening their ability to survive in some cases. By identifying unsatisfied customers, you can carry out damage control to try and reverse a bad situation. Reaching out directly to customers to apologize and offer a make-good won’t undo a negative experience, but it might go some way to lessening it. This is your opportunity to show how much you care about your customers.
#3. Customer Satisfaction Score can help identify what you need to improve
By assessing customer satisfaction at multiple stages in the customer journey, you can learn what it is that you need to improve in order to enhance this experience. That could be anything from marketing (are customer expectations in line with what you’re offering?) to customer service to the sales process. Companies should always be on the lookout to improve, but knowing exactly what to improve can be tricky. CSAT can help shine an illuminating light. Just make sure that you “action” this feedback and the results can be truly transformative.
#4. Customer Satisfaction Score can steer the direction of your company
One of the great aspects of data is that it can be used to make interventions on both a micro and macro scale. Some of the above points deal with spotting specific customers. But you can also use large data sets to find patterns when it comes to your customer base and the type of customer who is most satisfied with your offerings. This can help offer valuable insights about everything from future marketing strategies to specific sales techniques to the kinds of products you offer in the months and years to come. It all depends on how you slice and dice the data.
#5. Customer Satisfaction Score can generate new sales
Businesses want to be able to tell prospective customers, or potentially investors, that they have a high level of customer satisfaction. CSAT can help provide these insights, which can be like gold dust for sales teams. This information can also be critical when it comes to identifying those areas of competitive advantage that you enjoy over others in your space. When it comes to highlighting the strong satisfaction rate customers have with your business, success can breed success. What prospective customer wouldn’t be more inclined to try out a product or service they know that large numbers of others have already tested and found to exceed their expectations? It’s this kind of winning formula that can take businesses to the next level when it comes to their success in the marketplace.