Happy Customers are the best brand ambassadors for any business. They spread good word and bring repeat sales that drives revenues and helps your business grow faster.
However, unless you measure & monitor customer satisfaction regularly, it’s difficult to point out what you can improve and what’s working well. That’s where Customer Satisfaction KPIs come in. They enable you to quantify an abstract item such as satisfaction, and provide an immediate feedback about customer satisfaction that enables you to quickly identify areas of growth.
Here are 5 Customer Satisfaction KPIs you should monitor regularly:
1. Net Promoter Score (NPS)
NPS tells you how many of your customers are likely to promote your product. If more customers recommend your product (promoters) compared those that don’t (non-promoters), then NPS is positive and it’s great for your business. This means customers are so happy with your product that they’re recommending it to others. If number of promoters is equal to those of non-promoters, then NPS is zero and it means your customers are neutral about your brand. If number of non-promoters are more than the number of promoters, then NPS is negative and you need to find out why it’s happening.
To begin with, you can track the current NPS, just a single number, on a regular basis. As you gather more data, you can track it over time to discover trends, and see the impact of your efforts on NPS. You can also break out NPS by customer segments. Some customer segments may be super happy with your product while some may find it lacking in some aspects. Accordingly, you can target the ‘happy’ customer segments in a more focused manner, and improve your product to satisfy the unhappy ones.
2. Overall Satisfaction
Overall Satisfaction is the number of customers who are satisfied with your product. If it rises every time you measure it, you’re business is headed in the right direction.
You can track overall satisfaction over time to see the fluctuations and trends, compare it against internal goals or benchmarks. You can even group customers based on their satisfaction – extremely satisfied, very satisfied, somewhat satisfied, not satisfied, unhappy – and monitor how the number of customers in each group changes over time. This will help you understand how many customers have moved across groups due to your efforts – for example, new features, latest pricing, current helpdesk software, etc.
3. Customer Retention
If your customers make repeat purchase, it’s a sign that your product is useful and they like it. However, it’s always possible that your customers explore other products, if they get a better offer from your competitor, or have bad customer experience with your product.
You can group your customers based on the number of weeks/months before your customers drop off. This will tell you how long your business is able to retain customers. A more sophisticated tool is to create a retention cohort table as shown below
It tells you what percent of your customers return every week to use your product, starting from the week they sign up.
4. Brand Attributes
Do your customers see your business the same way as you do? What are the words that come to their mind when they think about your product? Do they see it as ‘unique’ and ‘innovative’? If not, then you need to bridge this gap. It may be due to various reasons – may be the marketing message needs to be fine-tuned, may be your customers don’t know your business does these things, may be they don’t find your product easy to use, the way you do. You may think your product is a simple tool for SMBs whereas your customers may see it a sophisticated product fit for only enterprises.
You can send out a Brand Attributes Survey to understand customer’s perception of your product. It will help identify if there is a gap between customer expectations and what you’re offering. Once you’re aware about it, you’ll be able to make the right changes, and align your customer’s perception with your company’s actual proposition. Since your product meets customer expectation, it will make more customers happy and they’ll come back for more.
5. Industry Benchmarks
Customer Satisfaction is a very mature business area with a lot of research material and industry benchmarks available. So it’s important to compare the customer satisfaction of your business with your industry’s benchmarks, and those of your competitors. This will tell you where you stand and what you can do to improve customer satisfaction. It will also help you understand some of the inherent industry characteristics responsible for low/high customer satisfaction. For example, in online retail, damaged goods are a major cause customer dissatisfaction whereas for Enterprise software, it’s the steep learning curve or software installation.
Initially, you can create a simple dashboard to track these KPIs and share insights with your team on a weekly/monthly basis. As you feel the need to track more KPIs, you can always add more charts and numbers to it.
Monitoring Customer Satisfaction KPIs will tell you how many customers are happy, what is the cause for it so you can repeat those steps and even build a process out of it. It will also tell how many customers are unhappy, what’s not working for them so you can fix it as soon as possible. Happy customers will help spread the word, give you positive feedback that will only motivate you to make them even happier.