For a majority of US consumers, customer service is one of the main factors that determine whether they want to buy from or partner with a business. These days, it’s not enough to just be a brand that sells good products or services. It’s also crucial to develop an ongoing relationship with your customers, which involves knowing how to measure customer feedback. This will help you identify which aspects of the business work and which could be improved.
What Does Customer Feedback Involve?
Customer feedback pertains to the input shared by customers regarding their experience with your company. Customer feedback involves a range from positive comments to complaints, all of which you can use to work on whatever needs improvement.
There are several types of feedback that you can collect from customers, such as the following:
- Sales Feedback: With this information, you can determine how well customers are responding to your marketing efforts. Are your current methods effective at attracting more customers?
- Product Feedback: Find out whether your customers have a mostly positive or negative experience with your product or service. What do they feel are its strong and weak points?
- Customer Service Feedback: This gives insight into how well your representatives deal with your customers. Were the customers’ needs properly addressed?
Determining the kind of feedback you’d like to gather can help you form the right questions for customers. Take a look at some of the ways you can measure their feedback.
How Do You Measure Customer Satisfaction KPI?
Key Performance Indicators, or KPIs, are measurable values that show how well a business is meeting its goals. There are KPIs to assess revenue, client retention, profit margin, and so on. But what are the customer service metrics you should assess?
Customer Satisfaction Score
If you’re wondering how to measure service quality and customer satisfaction, one of the most straightforward ways is through a Customer Satisfaction Score or CSAT survey. It gives you a basic idea of how many customers are satisfied with a product or another aspect of the business. To get a score, you can have them rate their experience on scales such as:
- 1 to 5, with 5 being the highest score
- Categories ranging from unsatisfactory to very satisfactory
You then divide the total good responses (those who voted 4 or 5 or “satisfied” and “very satisfied”) by the total number of responses. Multiply the answer by 100, and you get a percentage that will be your CSAT score. So if you had 225 positive responders out of 300, that would mean your score is 75/100.
Net Promoter Score
A Net Promoter Score or NPS survey measures how likely a customer will recommend your product or service to someone else. It lets you know how many are actually loyal to your brand. This score usually uses a range of 1 to 10 to sort respondents into three categories:
- Customers who give scores between 1-6 are dissatisfied and may discourage others from your brand. These are called detractors.
- Those who rate 7 or 8 are passive customers. They had a good experience but don’t find it worth recommending.
- Promoters are customers with 9-10 scores. They’re both very satisfied and will gladly recommend your brand.
To get your score, you first get the respective percentages for both the number of promoters and detractors. You then subtract the percentage of detractors from the promoters.
Let’s say you have 50% detractors and 20% promoters. You’d have an NPS of -20, which means you don’t have a lot of loyal customers. As much as possible, you’ll want to avoid getting negative values.
Supplementing your score survey with a feedback form lets customers provide further insights into your brand. For example, if your survey was about the company’s customer support, they could write down what their experience was and whether it was good or bad. This helps you know exactly what your team needs to work on in the future.
Review Sites & Social Media
Social media networks like Facebook and review sites such as Yelp! can also be used to measure your customer’s satisfaction. If you have a presence on these platforms, chances are your customers are there too—and they could be following you.
People could also be talking about your brand, so you’ll want to track any mentions and reviews about you. You can collate all the good and bad reviews to determine what the common topics are. These can help you learn more about what needs improvement.
Knowing how to measure customer feedback is key to improving your business, which in turn also boosts your customer’s satisfaction. For optimal results, you can gather and measure feedback on a regular basis. This helps you stay updated on what your customers want from your company.
You know it’s important, but gathering that feedback can take a lot of time and effort. Communicating with customers is what we do at ROI Solutions. Contact us today for a customized solution to start or streamline your customer feedback process.