Customer satisfaction metrics provide valuable insights into customers’ emotional responses to products and services. However, they are only part of the picture.
Using multiple data sources, such as standard web analytics tools and conversational analytics, like Hotjar Observe, will help you understand the ‘why’ behind your customer satisfaction scores and provide actionable insights.
Net Promoter Score
The Net Promoter Score (NPS) is a simple yet powerful metric organizations use to determine customer loyalty. It asks customers, “How likely are you to recommend this product or service to a friend or colleague?” Those who answer 9 or 10 are called Promoters and can be considered loyal enthusiasts who help drive growth by advocating for the brand. Those who answer 7-8 are called Passives and can be swayed by competitive offerings, while those who answer 0-6 are known as Detractors and can damage your brand by sharing their bad experiences with others.
Unlike the Customer Effort Score (CES), NPS is a long-term metric that can only be determined during a specific interaction. NPS can be measured using transactional surveys, deployed after critical events like a purchase or after speaking with a customer support representative, as well as in-depth follow-up questions that give you an understanding of what makes your customers tick and why they voted how they did. This allows you to identify and target areas where improvements can be made.
Customer Effort Score
We expect convenience in a world where we can deliver almost anything right to our doorstep in seconds. Customer Effort Score—or CES—has become a critical metric in the CX toolkit. This survey gauges how easily customers can resolve issues or use your products and services. The key takeaway is that services that require little effort are more likely to engender loyalty than those that don’t.
To measure CES, you send a short survey after a specific interaction or process, such as filing a support ticket or shopping on your website. The question asks how easy they felt the experience was on a numbered scale—usually 1-5 or 1- 7. This helps you discover what is working and where to focus your efforts to improve.
You can either manually send out a CES survey after each contact with a customer or have an automated solution that does it for you. Either way, following up with dissatisfied customers or those who gave a low rating to address their concerns is essential. In addition, including open-ended questions in your surveys can give you new and valuable insights.
Customer Satisfaction Score
A customer satisfaction (CSAT) score measures how happy customers are with your product or service. It can be determined through direct measurements, such as a survey, or indirect measurements, such as analyzing purchase behavior. CSAT is a crucial metric for any business because it has been shown to correlate directly with customer loyalty and revenue.
CSAT can be measured by asking customers to rate their experience with your company on a scale of 1-5 or using graphics such as thumbs-up and stars. Companies can use this feedback to identify unhappy customers at critical points in the customer lifecycle and make amends before they become detractors.
Businesses that prioritize customer service see a boost in their CSAT scores. This means ensuring that employees are friendly and helpful and resolve customer issues quickly. It also means providing multiple channels for customers to reach out, such as email and chat. An omnichannel experience also helps boost CSAT, as does offering personalized recommendations and offers based on customer data. Improving customer satisfaction is one of the best ways to increase loyalty and retention.
Customer Loyalty Score
The customer loyalty score is a simple yet powerful metric that measures the percentage of your customers who remain loyal to your brand within a specific period. It provides insight into the number of repeat purchases. It helps you discover which customers will likely try new products and be more receptive to your upselling and cross-selling strategies.
Loyal customers are less price-sensitive than their non-loyal counterparts and are likelier to recommend your products or services to friends and family. Customer retention rates are critical indicators of the profitability of your business – recent studies have found that a 5% increase in retention can increase profits by 25% or more!
Like CES and NPS, this metric can be collected through customer surveys by asking questions like “How satisfied are you with your purchase?” or “How likely would you be to recommend this product to a friend?”. Using this metric directly after customer support or education interactions such as demos, troubleshooting, and follow-ups is common.
Repeat Purchase Intention
Unlike the NPS, which only measures the likelihood that your customer will recommend you to friends, the Repeat Purchase Intention gives you a complete picture of whether your customers will likely buy from you again. This metric is important because, as we all know, it is much cheaper to retain a customer than it is to acquire one.
The determinants of repeated purchase intention vary by goods and services. Still, some examples include trust (Bao et al., Citation2016), transaction experience and perceived risk (C. M. Chiu et al., Citation2012), perceived value and satisfaction (Gupta & Kim, Citation2007), delivery quality and convenience (Qureshi et al., Citation2009), and website quality (Brown &Jayakody, Citation2008).
It is also worth noting that the most effective way to improve your repeat purchase rate is to capture and act upon customer feedback continually. This can be done through surveys, focus groups, interviews with key customers, and even chatting with frontline staff. This helps you make the necessary changes to ensure your customers keep returning.
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