Top 10 reasons to track customer satisfaction – and how customer satisfaction can boost loyalty and help you grow your brand and reputation.
Customer loyalty has always been key to business success. However retaining this loyalty is harder in the digital age than in traditional over-the-counter marketplaces. Internet competition is ruthless and customers have no shortage of online options if they want to take their business elsewhere, plus many people follow the ‘ROPO concept’ of researching online and purchasing offline.
Customer satisfaction is the response people have to your business or service. In simple terms, customers who are satisfied are happy. And this happiness is the key to customer loyalty.
Tracking satisfaction and listening to feedback from your customers can boost loyalty, improve turnover, and help you grow your brand and reputation. That’s why measuring KPIs like customer satisfaction score (CSAT) or Emoscore – is so important.
Regardless of your business model, undervaluing customer satisfaction is a trap. Happy customers are more likely to return to you, while replacing unhappy customers can be a costly exercise, as these top 10 reasons show.
Top 10 reasons to track customer satisfaction
- It can cost between 5 and 25 times more to find a new customer than to retain an existing one. Don’t forget that converting new customers with introductory offers and promotions can add to your cost base. Keeping your current customers happy can, therefore, save a lot of time, energy and money. Working out the lifetime value of existing customers can help pinpoint how much to spend on retaining current customers – once you know this, you can focus resources on capturing new customers and building your customer base.
- Small gains can lead to big wins. If you can increase your customer retention by just 5%, you can reap increased profits of between 25 and 95%.
- The Pareto principle — also known as the 80/20 rule — holds that 80% of events are caused by just 20% of actions. It means 80% of sales are generated by just 20% of customers. Tracking satisfaction and listening to feedback from these customers can boost loyalty, improve turnover, and help you grow your brand and reputation. In the same way, 20% of your time may translate into 80% of your results. If you can hone in on your ‘positive’ 20%, you can make the most of your resources and maximize profits.
- Never underestimate the impact of emotion on the customer’s journey. More than 85% of customers increase their spend after a positive experience, whereas more than 70% cut their spend if they’re not satisfied.
- Only 4% of dissatisfied customers complain. That means for every four people who complain, 96 unhappy customers do not. And of those 96, 91 are unlikely to ever spend money with you again. You need to tap into this negative feedback to find out what you’re doing wrong. A dissatisfied customer who has solved a problem can become an even better ambassador for your brand than a satisfied customer.
- Word of mouth can damage your business. Unhappy customers may not tell you about their problems but they will tell others. In fact, an unhappy customer will tell between 8 and 10 people about their negative experience with you.
- In the internet age, your e-reputation counts. Old-style word-of-mouth may reach 8 to 10 people but with social media, an unhappy customer has access to an audience of millions. This ‘virality concept’ can mean one negative tweet or Facebook post can have a devastating effect on your business. As the post goes viral, its rate of spread picks up pace with every ‘share’.
- Unhappy customers tell others about their experiences — but so do happy customers. Having an effective complaints resolution procedure can ensure unhappy customers go away happy, turning a negative into a positive. A dissatisfied consumer will tell between 9 and 15 people about their experience. About 13% of dissatisfied customers tell more than 20 people.
- There is an emotional gap between businesses and customers. Some 80% of companies think they deliver great customer experience, but only 8% of customers agree. You need to make sure your customers’ perceptions match your own.
- Ignoring your customers’ emotions can erode satisfaction. In the digital age, using automated processes to save money can be an easy trap to fall into. Ask yourself if you ever feel like you’re running a call center. Instead, play to your strengths and humanize your business to ensure your customers understand they are dealing with people and not just machines. This can give you an edge over competition — only 30% of businesses base their internal procedures around achieving a top customer experience. Putting your customer — and their feelings and emotions —first is key to improving your bottom line.
Top tips to improve customer satisfaction
- Make contact: Get to know your customers and find ways to interact with them, such as via ‘in-the-moment’ and real-time surveys. Also follow up initial contact with an email to show how proactive you are.
- Use emotions: Remember that emotions and user experience matter at the checkout. Fostering good relationships with your customers can help them to feel happier about your business. Happy, reassured customers will feel as confident about your products as you do.
- Use feedback: Don’t be afraid of customer feedback — constructive criticism can help improve your business. Use feedback fast and efficiently to change procedures that are affecting customer satisfaction.
- Be customer centric: Remember the customer is always right. Act to put wrongs right to ensure unhappy customers feel satisfied with the steps you’ve taken to deal with their complaints. Make their most recent emotional response to your business a good one.
How Emolytics can help you
Emolytics takes a scientific approach to measuring customer satisfaction. Using rigorous methodology and a unique user-centric KPI, it’s a one-stop tool for identifying customer problems and inspiring change.
Short but regular surveys collect valuable information that highlights the emotional impact of day-to-day management and marketing activity on your customers. This unlocks their emotions to find out exactly how they feel about your business. In this way, the Emoscore puts the customer at heart of your business.
The Emoscore KPI works across all stages of the customer journey and can help businesses both large and small. Emolytics drills right into customer data to analyze it based on different socio-demographic profiles, such as age, background and location.
Emolytics is quick and easy to implement, with reports and weekly summaries easy to digest, export and share with your team. This aids faster decision-making and behavior change inside your organization.
You can start using Emolytics to track your customers’ satisfaction today. Our digital experts can provide a free consultation to help you get started.
Traditional long-form surveys – the dinosaurs of marketing
Top 10 reasons to track customer satisfaction – and how customer satisfaction can...