Customer Satisfaction

 
 
 
 
“In a competitive marketplace where businesses compete for customers, customer satisfaction
is seen as a key differentiator and increasingly has become a key element of business
strategy”.1 

1
Gitman, Lawrence J.; Carl D. McDaniel (2005). ​
 ​ The Future of Business: The Essentials​
. Mason, Ohio:
South-Western.
 
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What is Customer Satisfaction?
During the past decades, customer satisfaction has been subject to complex shifts in
meaning as well as measurement. Where previously, satisfying a client was confirmation
of a job well done; now, Customer Satisfaction has turned into a more scientific and
seizable marketing value​
. Nowadays, Customer satisfaction is seen as a business term
measuring how a product or service meets or surpasses customer expectations.

Paul W. Farris, professor of Business Administration at the University of Virginia, defines

Customer Satisfaction as "the number of customers, or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals."

Why measure Customer Satisfaction?

“Customer satisfaction is a leading indicator of consumer intentions and loyalty".2

Customer satisfaction goals often relate closely to particular expectations. If a company

advertises their product as superior and their product fails to uphold this claim,
consumers will rate the product worse than had the product never been advertised at all.

By just listening to your customers, rather than spending ages evaluating revenue
developments, KPIs, or other marketing factors, you learn more about your company and
gain knowledge about customer perception of your product or service.

Moreover, you develop relevant conclusions about customer retention and customer
churn. In the end, these insights help you improve your product or service according to
customer’s demands.

Talk to your customers

In fact, many companies are convinced they satisfy their customers excellently without
every truly talking to them. According to studies from Lee Resource Inc, 96% of
customers do not complain, but just leave and never come back.

2
Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ​
​ Marketing Metrics: The
Definitive Guide to Measuring Marketing Performance.
 
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This is why you cannot ignore your silent customers. You need to approach and guide
them through their experience. Ensure your customer care is top-notch, because “70% of
buying experiences are based on how the customer feels they are being treated”.

How to measure?
A good, effective way to measure customer satisfaction is through an appealing customer
survey. Ask your customers to rate you based on a certain scaling and specific variables.
For instance, a survey question might ask them to rank your customer service on a scale
from 1 to 5. This provides you a solid impression of your customer’s satisfaction
regarding customer service, specifically. Your customer survey allows insight into
different categories regarding your customer’s experience.

With a survey like this, you learn how your customers feel about your product or service

 
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and why they feel that way. But, that’s not all. You even discover clues about how they
will relate to you in the future. Will he/she denounce or praise you? Will he/she be a
repeat customer? Will he/she recommend you to friends? On a five-point scale,
"individuals who rate their satisfaction level as '5' are likely to become return customers
and might even evangelize for the firm“.3

Ongoing quality checks combined with tracking of overall customer satisfaction reduces
negative word-of-mouth, which can which can significantly hinder positive marketing
efforts by your business.

A relevant rating is an objective, immediate response to your business approach. Use it

and start improving right away!

Don’t lose time. Create your individual customer survey and listen to your customers
today. If you need help, read our article about how to build a successful Customer
Survey.

Make your customers more valuable

“Acquiring a customer costs 5 to 10 times more than retaining one”.4

Besides offering an accurate customer perception of your company, measuring and

improving customer satisfaction raises the value of each customer. Studies show “totally
satisfied customers have a repurchase rate that is 3 to 10 times higher than that of
‘Somewhat Satisfied’ customers.”

Bear this in mind and increase your efforts in customer retention, instead of spending
the majority of your marketing budget on customer acquisition. This pays off heavily in
the long run.

3
Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ​
  ​ Marketing Metrics: The
Definitive Guide to Measuring Marketing Performance.
4
(eMarketer, 2002)
​
 
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Put it in a nutshell
In times when users share their experiences globally in a matter of minutes, it is
evermore important to be there for your customers and understand their experiences
with your business.
By setting up processes that can substantially improve customer satisfaction, you will:

● learn more about your company, your services and your customers
● contribute to customer retention and customer loyalty
● counteract customer churn
● increase the possibility of customer recommendation
● raise the value of individual customers

Consequently, improving your overall Customer Satisfaction will upgrade your product,
reputation, and‒notably‒bottom line. It is more than worth it to put some effort into
customer satisfaction and research for your best possible solution.

Feeling overwhelmed by your customers expectations? Need a reliable partner to help

you gain a good reputation and reduce negative word-of -mouth?

Contact us! With our years of experience in the field of online reviews, we can certainly
help you out!

Consult our staff for a free demo on our solutions!

Customer Alliance
Ullsteinstr. 118 Tower B , 12109 Berlin, Germany

www.customer-alliance.com
 

 
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