The Customer Satisfaction Survey is the best way to find out if your company delivers what consumers are looking for when they choose it. In other words, the Satisfaction Survey is the right tool to measure the value of your products and services, based on the perception of the people who matter most: the customer.
And do you know why it’s becoming increasingly important to measure customer satisfaction? First, because consumers are becoming more and more demanding. And second, because competition is growing in every market segment.
The customer is empowered
A recent survey by Zendesk (2021) indicates that:
For half of consumers, the customer experience is more important now than it was a year ago. And 80% of them say they will switch to a competitor after just one bad experience.
Given this, providing a positive customer experience has become essential for companies seeking to build customer loyalty, increase average spending, and thereby boost their profitability.
Otherwise, without regularly monitoring customer satisfaction levels, the greatest risks are the gradual loss of customers, rising customer acquisition costs, and the reduced effectiveness of marketing and sales efforts. This, in turn, impacts the overall performance of the business.
In this article, we present various statistics on the impact of customer satisfaction on business. We also explain why it’s important to use customer satisfaction surveys strategically. Here’s what’s ahead:
- Customer satisfaction: What is it, and what are its benefits?
- What is the value of having satisfied customers?
- Customer loyalty as a business strategy
- What does the customer satisfaction survey identify?
- What does a satisfaction survey help improve?
- How does the customer satisfaction survey work?
- Incognito: The most detailed search option.
- What factors influence the customer experience?
- Conclusion
Customer satisfaction: What is it, and what are its benefits?
From a company’s perspective, customer satisfaction is the result of comparing a customer’s expectations with their experience with a particular product or service. Therefore, when a customer’s expectations exceed the perceived benefits, they are disappointed with that product or service.
On the other hand, if the perceived benefit meets their expectations, the customer is satisfied. But it is only when the customer experience exceeds their expectations that they are truly delighted!
So, why should your company care about customer satisfaction?
First, because highly satisfied customers buy more often than moderately satisfied customers. Second, because they make more expensive purchases. And third, because they recommend your company’s products and services to people they know. And all of this increases the business’s profitability.
In addition, loyal customers cost the company less and are less sensitive to prices, promotions, and competitors’ advertising. In other words, they become an indispensable ally in the quest for success. But exactly how much are we talking about?
Several studies by renowned institutions provide concrete data on the impact of customer satisfaction on business.
What is the value of having satisfied customers?
Below are some key facts about the importance of monitoring customer satisfaction:
10 Data related to customer satisfaction
1. When it comes to finances, 89% of companies that deliver an above-average customer experience outperform their competitors financially, according to a 2020 survey byQualtrics XM Institute in 2020.
2. Furthermore, providing better customer service experiences can increase revenue by 4% to 8% above the market average, according to a study by Bain & Companyfrom 2015.
3. Companies that conduct customer satisfaction surveys using the NPS metric can increase their growth rates by up to 10%, according to theQuestionPro article.
4. From a cost perspective, retaining a customer can cost up to 25 times less than acquiring a new one, according to a 2014 article in theHarvard Business Review.
5. 89% of consumers are more likely to make another purchase after a positive customer service experience, according to a survey by Salesforce Researchfrom 2020.
6. According to a report by Zendeskfrom 2021.
7. According to a global study by PwC, published in 2018.
8. Furthermore, 92% of customers trust recommendations from people they know more than they trust advertising, and 70% rely on online user reviews, according to a 2012Nielsen study.
9. When it comes to customer satisfaction, the duration of a positive customer experience (NPS promoter) can be 6 to 14 times longer than that of a detractor’s experience, according to a 2015 survey byBain & Company.
10. Finally, nearly three out of five consumers say that good customer service is the key to their brand loyalty, according to a 2020 report byZendesk.
Customer loyalty as a business strategy
Customer satisfaction is so important today that the Customer Experience (CX) department has become the top priority for executives over the next five years, according to SuperOffice (2021).
Reinforcing this point, Gartner notes that 87% of companies expect compete on CX in 2021. In other words, the race to build customer loyalty is becoming increasingly fierce and has become central to the growth strategy of many companies around the world.
Philip Kotler, the father of marketing, states that: “Smart companies regularly survey customer satisfaction, because that is the key to delighting and retaining customers.” After all, it is only at the highest levels of satisfaction that customers form an emotional bond with the brand, yielding the various benefits outlined above.
So, what challenges do companies face when it comes to building customer loyalty?
The main problem identified so far is that businesses and consumers have different perceptions on the subject. Thus, while 76% of companies believe they offer a good customer experience, only 49% of consumers say the same, according to a study by Opinion Box (2021).
In this regard, satisfaction surveys enable companies to better understand their customers’ desires, needs, and expectations.
What does the customer satisfaction survey identify?
A customer satisfaction survey can measure various aspects, such as: the buyer’s willingness to recommend your brand to others; the ease of interacting with your company; and the overall level of satisfaction with your service or product.
In addition, it also allows you to gather feedback organically so that your company can gain a deep understanding of your customers. And this is the first step toward knowing how to satisfy your customers.
By identifying the factors that influence the customer experience, companies can effectively guide their marketing efforts. In practice, therefore, satisfaction surveys help identify:
- Service failures;
- Customer expectations regarding products and services;
- Values that consumers associate with the brand;
- Factors that affect customer satisfaction;
- How customer satisfaction changes over time.
What does a satisfaction survey help improve?
Customer satisfaction surveys provide data that helps improve customer relationships. As a result, companies that conduct these surveys on a regular basis are able to anticipate customer complaints. In other words, this makes it easier to:
- Create more efficient customer service processes and validate them quickly;
- Develop innovative products and services that meet customer expectations;
- Adopt new customer satisfaction metrics;
- Anticipate trends in customer satisfaction;
- Build rapport and empathy with your customers;
- Make business decisions with a customer-centric approach.
How does the customer satisfaction survey work?
There are basically two ways to track customer satisfaction. One is through the company’s own communication channels. The other is by “getting out into the field.”
First, the company can conduct customer satisfaction surveys through its customer service department; conduct post-purchase evaluations by placing kiosks at store exits or distributing questionnaires at points of sale; or contact customers directly via phone or messaging apps.
The downside is that, in general, internal surveys provide superficial information compared to field surveys. This is because customers are reluctant to spend time describing their shopping experience in detail. On the other hand, internal surveys can reach a larger number of customers.
The second way is to conduct field research, such as mystery shopper. In this type of research, the company is able to gather a larger volume of information and collect feedback with greater precision, objectivity, and depth of detail.
Incognito: The most detailed search option.
Simply put, mystery shopping involves a trained consumer who evaluates the shopping experience in minute detail and in an unbiased manner. The survey is conducted anonymously and gathers information on all aspects that impact the customer experience—from the shopping environment to customer service—including details on price and convenience.
Other areas that can be assessed through mystery shopping include the efficiency and convenience of processes at the point of sale, over the phone, and on digital platforms such as e-commerce sites and mobile apps.
Given the volume of data and information provided, this type of research offers a more in-depth understanding of the factors that affect customer satisfaction.
What factors influence the customer experience?
Customer satisfaction can be influenced by many factors, which vary depending on the product or service in question. However, some factors apply universally, such as value for money, convenience, and customer service. For example, price and quality remain key factors in consumers’ decision-making.
Positive experiences, on the other hand, have a particularly strong influence on segmentssuch as healthcare (78%), banking (75%), restaurants (74%) and hotels (74%). In this regard, the consumer experience is primarily influenced by factors such as: efficiency; convenience; friendliness; professional service; and ease of payment.
And it is precisely to enjoy these benefits that customers are willing to pay more for a product or service.
The Importance of Customer Service
Among the factors listed above, customer service, in particular, plays a major role in customer satisfaction. So much so that, according to a global study conducted by Microsoftin 2018, 95% of consumers prioritize customer service when choosing a company.
However, the views of companies and customers also differ significantly on this point. While 80% of companies rate their customer service as efficient or very efficient, only 51% of consumers agree.
That’s why it’s essential to use and monitor certain customer experience metrics. And it’s no surprise that 57% of companies already use customer service survey or evaluation tools, and 26% plan to implement one.
There are several ways to track customer satisfaction, and the most important thing is to understand which ones are relevant to your business. Would you like to learn more about this topic?
Conclusion
In this article, you’ve seen 10 findings from renowned institutions on the impact of customer satisfaction on business performance. It’s significant and can be measured.
You’ve also seen that the race to win over consumers is just beginning and that the customer experience is becoming increasingly important in companies’ strategies. By monitoring customer satisfaction, companies can identify areas for improvement in their processes, take steps to win back dissatisfied customers, and build greater customer loyalty.
Another important point: customer service is the factor that most significantly impacts customer satisfaction in sectors where the experience matters more than price and quality. In other words, with consumers becoming increasingly demanding, systematically surveying the quality of customer service and customer satisfaction has become vital for businesses.
Want to know how your company can improve customer satisfaction and the customer experience?
