In an increasingly crowded marketplace, customer satisfaction is more important than ever; your effective customer service may be the thing that sets you apart from the competition – or the thing that makes you fall behind. Your Net Promoter Score (NPS), Customer Satisfaction Score (CSAT) and Customer Effort Score (CES) all provide valuable feedback and insight into your performance, but which metric is best for your business? Learning more about these different metrics and customer feedback surveys can help you make an informed decision and make the most of your customer experience.
Customer Satisfaction Score (CSAT)
This is a catchall term that covers a variety of customer feedback surveys and questions; the CSAT is designed to measure how happy or satisfied a customer is with your business, your product or your team. Customers are asked to self-assess their level of happiness with one or more aspects of your business; collecting this data allows you to get a better understanding of how your business is performing.
You can customize the questions asked to target specific areas of your business; the ability to ask multiple questions ensures you can access the data you need. CSAT does have some drawbacks though – the people most motivated to complete this type of survey are either very happy or very unhappy, so you are not getting a true measure of your entire customer demographic. CSAT is not always a good indication of customer loyalty; it is more a measure of how well customers believe your business is performing. Worried about loyalty? The next metric, NPS, is the one to watch.
Net Promoter Score (NPS)
What do customers think about your product – and are they on the verge of going elsewhere? NPS is made to measure loyalty and to determine how likely it is that a customer will function as a brand ambassador of sorts, recommending your product or service to others.
NPS looks at who your customers are and how they relate to your business – and there are three key types of interactors:
- Promoters, who love your brand, service or product and actively recommend you to others
- Passives, who return themselves and like your product, but don’t make an effort to recommend you to anyone else
- Detractors are not pleased at all and could even leave a negative review or complain about your business to others
Customer feedback surveys allow you to determine which customers fall into which categories and to measure your number of good (Promoters and Passives) to not so good (Detractors). Simple one question iPad kiosk surveys that ask customers to rate their willingness to refer a friend can provide valuable insight into your performance. A Promoter will give you a 9 or 10 out of a scale of 1-10, while a Passive will give you a 7 or an 8; Detractors will rank you 6 or below, depending on just how unhappy they are.
Calculate your NPS by figuring out the percentage of Promoters to Detractors – the more promoters you have compared to your Detractors, the higher your NPS score will be. NPS works because it requires very little investment on the part of the customer, for a net promoter score survey usually a single question is sufficient. NPS continues to be a useful way to measure loyalty and can also be used to increase your referrals as well.
Customer Effort Score (CES)
How much work does a customer have to do to buy from you? Customer Effort Score measures the difficulty a customer faces when trying to buy from you. Your CES score can be a wakeup call – if you are making your customers work too hard, they may go elsewhere. While this measurement looks at only one aspect of your business, it is important to look at it occasionally and ensure you are not making your customer jump through too many hoops to get your attention. On-site surveys using an offline survey app right at the point of purchase can help you effectively measure this helpful metric.
Metrics matter, and using the right approach for understanding loyalty, satisfaction and effort ensures that you are creating the best possible experience for your customers.
Also published on Medium.