A satisfied customer speaks volumes about business success. In a competitive market, where customers have multiple options, how happy you keep them decides the future of your business. It is significant to understand customer needs and cater to them efficiently to achieve the desired customer satisfaction score and targeted business growth. There are multiple customer satisfaction metrics that a business should consider to gauge and improve its Customer Satisfaction (CSAT) score. 

Keeping an eye on the customer satisfaction level has multiple other benefits, like improvement in your customer lifetime value. Hence, it becomes crucial to emphasize it to support business growth regarding reputation or revenue. This article will dig deeper and discuss the essential metrics one can consider for measuring customer satisfaction and the best way to implement them in your business. Before that, let us discuss what is customer satisfaction.

What is customer satisfaction?

Customer satisfaction is a metric to measure how happy your customer is with your offerings. It tells whether they like the products or services you offer and are content with the customer support they get from you. It is convenient to measure the satisfaction level. You only have to conduct a survey, asking your customers for feedback about your business. If most of them give a positive response, you know you have an excellent customer satisfaction level. Organizations must measure it because the business growth and the revenue directly depend on the CSAT score. 

Metrics for measuring customer satisfaction

You have understood the significance of the customer satisfaction score. Now, the question that arises is how will you calculate it. Below are the key metrics you can consider to check your CSAT score and get an idea about your customer lifetime value. 

1. Net Promoter Score (NPS)

A satisfied customer is happy with what he gets from your business and wouldn’t shy away from referring you to others. Hence, the NPS can serve as a metric to measure the customer satisfaction level of your business. To calculate the NPS, you take survey feedback from your customers, asking them to rate different aspects of your business on a scale of 0 to 10. Categorize the responses as Promoters (9-10), Passives (7-8), and Detractors (0-6). Getting a higher number of brand advocates indicates that your customer satisfaction level is also high.

2. Customer Satisfaction Score (CSAT)

The Customer Satisfaction Score is a direct metric to measure satisfaction level with specific interactions under consideration. After every purchase, ask your customers to fill out a feedback form, giving a score to different business aspects. At the end, calculate the average score to determine the overall satisfaction level. If you get an average score of more than 9 from most customers, your CSAT score is high. 

3. Customer Effort Score (CES)

No customer likes to put extra effort into making a transaction or interacting with your business. For example, if your registration form is too complex, many users may not sign up for it. So, keep things simple and ask your customers how easily they can achieve their goals while interacting with the business. A low CES signifies drastically low satisfaction of your customers. In such a situation, you have to work hard to minimize your customer's effort. 

4. Customer Churn Rate

Another metric that can help measure the satisfaction level is your Customer Churn Rate. Understand that a customer never leaves your business if he is happy and satisfied with the experience you offer. So, if you experience higher churn rates, it indicates an increased number of unsatisfied customers, and you have to do something about it. Monitoring the churn rate helps businesses identify potential areas for improvement. Using this information, you can implement strategies to retain customers.

5. Ratings and Feedback

Digitization has solved many issues and brought transparency in every domain. Measuring customer satisfaction metrics, online ratings, and feedback can also help. Check various authority websites to review what your customers have said about your business. If most of the ratings are in your favor, you know you have achieved an excellent customer satisfaction score.

Customer satisfaction is a dynamic aspect. You have to consider multiple metrics to get an accurate value. With the help of the metrics listed above, you can get a comprehensive picture and better understand customer sentiment. Ensure you keep a constant eye on these metrics and keep working towards optimizing them to support expected business growth.