• Ssemujju Lewis E

What Is Customer Satisfaction And Why Is It Important?

Did You Know? One bad experience is responsible for losing about 50% of your business to your competitors - Zendesk Customer Experience Trends Report 2021.


Customer satisfaction is one of few factors at the backbone of your business - responsible for the success or failure of the business. Customers drive business and therefore be made a priority.


Customer service is the direct one-on-one interaction between a consumer making a purchase and a representative making a sale.


What Is Customer Satisfaction

Customer satisfaction (CSAT) reflects sentiments that customers hold and have regarding interacting with your brand. It is a measurement of how happy or unhappy customers are with a company's products, services, or experience.

When a brand's delivery and usage meet a customer's expectation, that's a recipe for success. The reverse is also true. The easiest way to find out the customer's impressions is by conducting CSAT surveys.


Below are more metrics brands use to gather more data to improve on the customer satisfaction scores:

  • Net promoter score: This score evaluates customer loyalty by measuring the likelihood that a customer will refer you to someone. Referrals are important for company longevity.

  • Customer effort score: This score measures the effort customers had to use to get their issues solved. The lower the score, the more efficient customer service is, and the happier customers are.

  • Social media monitoring: Monitoring what your followers are saying on social media helps you evaluate how customers feel about your company and what they are saying to their closest family and friends about it.

  • Measuring complaints: This is the measurement of the number of complaints received for products or services sold or survey responses per 100, 1000, or up to 1,000,000 units. Lowering this score means you are proactively reducing customer dissatisfaction.



Why is Customer Satisfaction Important?


Customer satisfaction is a driver for business, as it is a pathway that customers use to communicate with brands whose products they use.


1. Identifying Unhappy Customers.

Customers are the sole reason for business. Unhappiness for them can lead to negative reviews, with ripple effects felt in sales and profits. Customer Satisfaction helps brands identify unhappy customers, why they are unhappy, and what can be done to mitigate the situation.

Over 33% of customers would consider switching due to unsatisfactory customer service.

2. Identifying Happy Customers

Just as unhappy customer metrics are important, it is important to keep track of the happy customers. Satisfied customers are important because they maintain loyalty and increase referrals. Referrals translate to more business.

The probability of selling to an existing, satisfied customer is 60-70 percent (while the probability of converting a new customer is 5-20 percent).


3. Gauging Team Performance

The metrics of customer satisfaction help a brand rate the team's performance that's handling customer support. Long response times always translate to bad service - and this could be the reason for unhappy customers. The reverse is true for happy customers.


4. Make Priorities

Customer metrics help you focus your priorities. Customer satisfaction data allows your teams to assess what areas they need to work on to improve the health of your customer base. Customer success teams, sales, production, and marketing are all involved in making your customers' experiences excellent.


5. Increases Customer Lifetime Value

According to the Zendesk report, 75 percent of customers are willing to spend more to buy from companies that give them a good customer experience, according to our Trends Report. Satisfied customers are not only more likely to remain loyal and less likely to churn, but they're also more likely to spend more money with your business. The report further stated that during the first 6 months of the COVID-19 pandemic, those companies with the highest CSAT scores were 8.7x more likely to have significantly grown customer spend.


Final word

Customers drive the business. Customer satisfaction effects can easily be felt in referrals, reviews, word-of-mouth marketing, and sales closed and revenue. Unhappy customer data will manifest in reduced sales closed, dwindling revenue, and negative revenues. Customers do the business, and how they feel about the brand is vital.


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