Here’s the hard truth about running a business: you may have developed the best product or service and you may even offer these at competitive prices, but if your customers are unhappy, you’re not going to succeed.
But what does success truly mean when running a business?
Can it be measured in the number of followers you have on social media? Is it as simple as tracking the conversions following a marketing launch? Should you base it on the volume of visitors that you get to your website?
The key is when a customer walks away, thinking, “Wow, I love doing business with them, and I want to tell others about the experience.”
– Connor J. Wilson
We may hold different metrics for success, but one thing is for sure: all of these are dependent on your customers.
So, naturally, it makes sense for brands like yours to adopt a customer-centric approach.
And the first step to doing this is to make sure that you understand your customers.
Just how important is understanding your customers, exactly? To answer this, let’s take a closer look at how understanding your customer is tightly linked to their satisfaction.
What is Customer Satisfaction?
In business, there’s a long list of vague terminology and confusing jargon. Customer satisfaction is perhaps at the top of this list.
You see, the basic definition of customer satisfaction is that it is a measure of how customers feel about your business.
Feelings, as you may already know, can be quite difficult to quantify. However, various methods have already been developed to shed light on the matter. For example, the Net Promoter Score or NPS.
But what makes customer satisfaction important anyway?
It’s quite simple: if your customers are unhappy, you lose them. You’ll have to make up for this loss by doubling your efforts in acquiring new customers. And if you can’t keep the numbers to tip in your favor, then your business fails.
Is your heart racing? All we’re trying to say is that the way your customers react to your business matters. But this also doesn’t mean that you should just sit back and bite your nails as you await their verdict. Proactivity in seeking customer satisfaction also goes a long way.
You can identify who your unhappy customers are and pinpoint what it is they’re unhappy about through measuring your customer satisfaction.
This starts by reaching out to them to ask for their feedback can help you identify areas in your service that needs to be improved. Who knows, you might come across important data that can ultimately make or break your business.
The bottom line — measuring customer satisfaction and understanding your customers go hand in hand. You can satisfy your customer better by understanding what they need. At the same time, you can understand them better if you reach out to them to measure customer satisfaction.
Customer Satisfaction: A Two-Step Plan
Every business has its own advantages and faults. But the top-performing ones have earned their spot because they have taken the time to explore every possible metric for success, including customer satisfaction.
To do the same for your business, you need to be able to answer two things:
- Who are my customers?
- What does it take to keep them happy and satisfied?
Of course, this is not just a simple if-then scenario. You might have varying customers with different preferences. This means that you might need to apply varying approaches to keep each major demographic happy too.
Still, the end goal of this two-step plan is one thing that a lot of businesses strive towards. We’re talking about customer retention.
Customer retention is important for businesses. After all, it’s so much easier (and cheaper) to retain your current customers and nurture them, compared to acquiring new customers and gaining their trust.
How to Measure Customer Satisfaction Through NPS
When it comes to measuring customer satisfaction, a customer survey is often involved. Of course, there’s also the option of simply relying on the conversion rates to make assumptions on how your business is received by customers. However, surveys do you one better by giving you insight into the emotional response that your customer had.
The Net Promoter Score (NPS) is one of the tools that can help you with this.
It gathers data for you so you can take a peek at your customers’ emotional response to your initiatives or your business as a whole.
Based on this data, you can then easily compute your score. The equation is straightforward too.
Percentage of Promoters – Percentage of Detractors = Your NPS Score
Some say that this is an oversimplified calculation of customer satisfaction, but it’s all about applying this data and using it to improve your business.
There is no way around it — customer satisfaction matters. It matters because it helps you retain your customers. It matters because it helps you understand your customers better. And now that you know what it does, hopefully, you take the time to explore this metric of success and implement strategies to take an even deeper dive into understanding just what your customer needs.