Induction module- USW-IND-101
4th September 2018
What comes to mind when you hear someone say, “A satisfied customer”? It is an image of someone smiling with the pride of knowing he/she got a good deal. Whatever your picture of a satisfied customer is, customer satisfaction is typically defined as the feeling that a person experiences when an offering meets his or her expectations. When an offering meets the customer’s expectations, the customer is satisfied. Improving customer satisfaction is a goal sought by many businesses. In fact, some companies evaluate their salespeople based on how well they satisfy their customers; in other words, not only must the salespeople hit their sales targets, they have to do so in ways that satisfy customers. Customer satisfaction is simply a measurement of how best a product, service, or an experience makes the customer happy and exceeds his/her expectations. Customer satisfaction has remained an important factor of customer behavior, the more the customer is satisfied, the more you can retain them. Customer relationships are no different. Whether you’re in a B2B or B2C marketplace, at the end of the day, you’re living in an H2H world…. human to human. And that’s where the importance of customer satisfaction comes in.
Building relationships with customers – Customer satisfaction is key in creating a long-term relationship with your customers. If you think back to the dating analogy, going through the sales process is just like wooing your prospect to turn them into a customer. But keeping a long term relationship functioning is hard work. You need to keep delivering value time and time again. You need to keep your customer satisfied. So once you’ve decided to keep customers satisfied and build a long term relationship with them, you need to know where you’re going wrong. How do you make sure you’re delivering value and setting your business up for happy customer relationships?
Customer Satisfaction Strategies – We know that dissatisfied customers are likely to tell many more friends about their negative experiences than satisfied customers are about good experiences. Why? Because there’s more drama in unmet expectations. Establishing appropriate expectations in the minds customers is a function of the repurchase communications the seller has with them. If you set the expectations too low, people won’t buy your offering. But if you set the expectations too high, you run the risk that your buyers will be dissatisfied. A common saying in business is “under promise and over deliver.” In other words, set consumers’ expectations a bit low, and then exceed those expectations in order to create delighted customers who are enthusiastic about your product. A seller hopes that enthusiastic customers will tell their friends about the seller’s offering, spreading lots of positive word of mouth about it.
The Feedback of Customer Satisfaction – If customer satisfaction is the goal, then constant feedback is the best way to improve over time. You need to measure customer satisfaction in order to improve it. There are a few ways to measure customer satisfaction, but the most common and effective ways are to simply ask your customer.
Transactional satisfaction measures how your customers feel after contacting your business. After each reply or interaction, ask the customer how they felt about the exchange. Are they satisfied? Or could you have done more to make them happy? We’d also recommend following up the initial question with a probing question to understand where you went wrong, or what you did right. This gives you an opportunity to immediately reach out and rescue the situation if they are unsatisfied. In order to track your improvement over time, divide the number of satisfied responses by the total number of responses and multiply it by 100. (ie. 82 Satisfied Customers out of 100 Total Responses = 82%) This number is typically referred to as Customer Satisfaction Score (CSAT) – (is a metric that measures customer’s feelings regarding a recent interaction).
Measuring satisfaction at regular intervals instead of just after interactions is also important. Many companies do regular customer satisfaction surveys once or twice a year. It’s a great opportunity to ask more targeted questions about what impacts their relationship with your company.
How would you feel if the company wasn’t available tomorrow?
How likely are you to recommend company to friends and family? (The Net Promoter Score (NPS) question!)
What is the one thing we could do to make you happier?
Measuring your customer satisfaction and continuing to seek feedback tells you where improvement is needed. It keeps a constant pulse on the state of your relationship with your customers and provides you with the information needed to do better.
Happy Customers means Happier Employees
Agents who routinely have to deal with upset customers can find their job demanding. It’s even worse if your agents aren’t empowered to resolve the situation. Instead of feeling like part of the solution, your team will feel like an obstacle between your customers and the rest of the business. When agents feel drained, uninspired and ineffective, they don’t tend to stay in their jobs for very long. Customer satisfaction doesn’t just impact the business’ bottom line, it also impacts team morale and retention rate.
Measuring Customer Satisfaction
To measure customer satisfaction, you need to able to understanding what creates it. Just asking customers, “Are you satisfied?” won’t tell you much. Yet many companies often measure the satisfaction of their customers on the basis of only a few questions: “How satisfied were you today?” “Would you recommend us to your friends?” and “Do you intend to visit us again?” Effective customer satisfaction measures have several components. The two general components are the customer’s expectations and whether the organization performed well enough to meet them. A third component is the degree of satisfaction, or to put it in terms we’ve used to describe exceptional performance, is the customer delighted? If you don’t measure customer satisfaction, you can’t identify unhappy customers. If you don’t know who is unhappy, you don’t know who will churn. If people churn faster than you can acquire new customers, your business will fail.
“Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” ? H. James Harrington
Without contact or feedback from the customer, we isolate ourselves in a sort of bubble. The truth is, however, that even the best, most innovative, top-performing businesses all have faults and opportunity areas. These companies are elite because they measure things like customer satisfaction and act upon the data. If you’re open to the idea that you could improve, it’s worth spending the little bit of time it takes to set up measurement solutions and to collect the data. What’s the harm? You might find problem areas that are worth massive amounts in terms of ROI. That’s the general truth about measuring and data. Specifically, though, what’s the importance of customer satisfaction to business health?
There are many importance of customer satisfaction, such as; customer retention rate, building relationship with customers, brand loyalty, standing out with competitors, taking your brand to places, increase in revenues etc. But in my opinion, the three (3) main importance are:
Customer retention rate- companies and businesses that produces and offer services needs money to carry on business. Customer retention is arguably the most important factor in long-term business growth. You can acquire customers as rapidly as you’d like, but if they aren’t sticking around, you don’t have a sustainable business. Hence, when customers are satisfied, the company will have a high retention rate of customers.
Building relationships with customers- for companies/businesses to build long lasting relationship with their customers, they must thrive to keep them satisfied, because when they are satisfied, they maintain the relationship.
Brand Loyalty- customer satisfaction with the product as well as has trust in the way the company carries itself in its operations, it tends to lead to brand loyalty. Also, it must be noted that customer satisfaction with sales service and after sales service leads towards brand loyalty. If the services rendered during sales and after sales exceeds customers’ expectations, then they becomes loyal to that brand.
In conclusion, a company or a business that produces products and services for its customers must thrive to always add value to its products and services for their customers to be satisfied so as to increase their revenue and continue in business.
References (Harvard):0375, Satisfaction, C., Score, N., Surveys, C., Surveys, C., Questionnaires, C., Feedback, C., Station, C., Engagement, E., Surveys, E., Surveys, E., Surveys, E., Feedback, 3., Surveys, E., Station, E., Research, M., Research, M., Research, P., Research, P., Polls, O., Feedback, W., Station, C., Quote, G., Survey, F., Free, T. and Account, M. (2018). 4 great ways to improve your customer satisfaction – Netigate. online Netigate. Available at: https://www.netigate.net/articles/customer-satisfaction/4-great-ways-improve-customer-satisfaction/
Bergman, B. and Klefsjö, B. (2018). Quality from customer needs to customer satisfaction. online DIVA. Available at: http://www.diva-portal.org/smash/record.jsf?pid=diva2%3A989573&dswid=-5694Customer Happiness Blog. (2018). The Importance of Customer Satisfaction | Customer Happiness Blog. online Available at: https://www.nicereply.com/blog/importance-of-customer-satisfaction/
Link.springer.com. (2018). online Available at: https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jt.5740100.pdfOpen.lib.umn.edu. (2018). 14.3 Customer Satisfaction | Principles of Marketing. online Available at: https://open.lib.umn.edu/principlesmarketing/chapter/14-3-customer-satisfaction/Tandfonline.com. (2018). online Available at: https://www.tandfonline.com/doi/abs/10.1080/0267257X.1992.9964204