So, customer satisfaction metrics are obviously something important to keep an eye on, because a satisfied customer is potentially a loyal customer and potentially an addition to a good standing reputation as a company. A better reputation also brings profitability and growth right along with loyalty. But, what are the important metrics for this?
Some things seem like they’d be obvious, because there are some pretty overt indices of how a customer feels. In modern times, a good source of some of these obvious, but hard to quantify customer satisfaction metrics are obtained or inferred by watching social networks, blog reviews and other sources of candid customer opinion and speculation.
But, moreover, that’s a source of metrics, not a metric itself. There are four critical metrics to keep an eye on, which the above are a good source for some of. These come largely from customer service and customer experience departments.
Let’s take a look at these metrics, and see why they matter, briefly.
#1 – Surveys
Surveys from periodical polls, post-incident questionnaires in customer service, and incentivized focus group participation are all important, because they give that non-numerical look on customer overall feedback and desires (the knowing of which are keys to making improvements that the customers like).
Surveys show not only how satisfied a customer is, but why they are or are not as satisfied as you’d like them to be. But, beyond category percentages based on words or ideas conveyed, this is a softer metric, though no less valuable for it. Nonetheless, you need some harder metrics too, right?
#2 – Churn Rates
Churn rates are important direct indicators. For a product merchant, it can seem difficult to calculate this, the only clear view of churn a non-service company can get is a loose regional dispersal of purchases along with a little faith in surveys.
Nonetheless, it shows how many customers are either dissatisfied, or not satisfied enough to turn away a competitor.
#3 – Loyalty Rates
This one’s the opposite of churn, but they’re not directly proportionate in many cases, so you need them both. Like churn, it’s harder to do if you’re not service, being general ratio indices, but even in that case, it shows the percentage of people at least satisfied enough to continue patronage and turn away competition. However, it indicates only sufficiency, not excellence, as a hard definite.
#4 – First Contact Resolution
This one’s right out of customer service, and we’ve talked at length about this one before. The ideal result of an incident causing contact with customer service is for it to end in the problem being rectified. The more first contact resolutions, the higher the inferred satisfaction index can be extrapolated, if you have the other metrics above in hand for a base.
Poor first contact resolution lowers this index in the same way. Customer service is a big part of the satisfaction factor, because it is this department for which you are ultimately judged.
Customer satisfaction metrics are important, and some are trickier to measure than others, it’s not so bad, really. You just need to use this as a base for researching these metrics in greater detail, before you act on it.