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The real value of measuring customer satisfaction

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According to conversion experts Invesp, it costs five times as much to attract a new customer than to keep an existing one, yet 44% of companies have a greater focus on customer acquisition, with just 18% focused on retention.

Walker Consulting predicts that the experience a customer receives will be the key differentiator for brand loyalty by 2020. The big question is, how do businesses measure the effectiveness of customer experience? A blog post from HubSpot recommends they follow the simple acronym OCCAM, which is:

  1. Outline goals and plan.

  2. Choose trigger or timing.

  3. Analyse the data.

  4. Make adjustments.

Indeed, the data gained from customer satisfaction surveys goes a long way in helping organisations understand the success of their offering and are a vital tool in helping to improve processes and outputs. There are several satisfaction surveys that businesses can use to gain such data, including:

  • Post-purchase. These surveys are sent to customers to measure the satisfaction of a product or service that's been purchased, covering all elements of the buying process from ordering to delivery.

  • Market research. Surveys to existing customers to find out what they would like to see from your brand in the future, whether that's new products/services or changes to processes.

  • Net Promoter Score. Used to find out how likely a customer is to recommend your brand to others.

Customer satisfaction surveys can undoubtedly provide a plethora of data that can be used by businesses to fulfil an agenda of continuous improvement. We practice what we preach at Henry Nicholas and heavily rely on satisfaction surveys to ensure we keep improving and offering outstanding service. For example, we’ve listened and applied changes from feedback and now boast a candidate Net Promotor Score® of 78, which is considered by global NPS standards as 'world-class'.

Here we take a look at some of the key benefits of these surveys and what they can help you achieve for your business.

Identify the need for change

As well as providing data on the general mood around your brand, satisfaction surveys can also help you to dig deep into each department to identify what’s working and what’s not, something that’s invaluable when it comes to long-term strategic planning.

A tangible way to measure your efforts

While analysing patterns in sales data can go a long way in establishing whether a product or service has been a success, hearing the thoughts and feelings of customers provides insights businesses wouldn’t previously have been exposed to. Customer comments, whether good or bad, offer the knowledge required to make significant decisions about processes, offerings and even how best to utilise your employees.

Shows customers you care

Giving customers the opportunity to have their say will go a long way in helping to drive customer loyalty through the perception that they’re valued. Additionally, providing you listen and act upon feedback, whether that’s fixing problems or offering incentives, customers will feel as though they’re getting more personalised service, something they have come to expect in today’s digital age.

If you’re convinced by the power of customer satisfaction surveys and are ready to get started, take a look at the some of the best rated online survey tools of 2018, according to PC Magazine:

For more news and views on all things data and insights, stay tuned to the Henry Nicholas blog or explore some of the latest roles in this sector today.