Maintaining customer satisfaction is extremely crucial for all businesses in modern times. Since it is only by concentrating on measuring customer satisfaction and carrying out necessary changes based on the customer feedback your company will be able to continually enhance the customer experience with your brand and hence retain more customers over the long haul using sales CRM software for small business.CRM can boost conversion rates by 300% - Financesonline Click To Tweet
Nevertheless, it has been often found that customer satisfaction is an aspect that is overlooked by companies as most businesses focus too heavily on bringing in new customers and too little on retaining the existing ones.
But do you know that on average an existing customer in any business spends 67% greater than a new customer, or that it cost 5 to 10 times more to find and onboard new customers than retain the existing ones?
Now, to generate stellar customer satisfaction for users of your brand that can help differentiate your business from the competition, you need to measure your customer satisfaction, using sales CRM software for small business which can be done by using these three primary models, to rate customer satisfaction, so that your customers reward your brand with recurring businesses.
Customer Satisfaction Score (CSAT)
CSAT is a widely acknowledge metrics used for measuring customer satisfaction using an easy to use CRM tool that is measured using a scale of 1 to 5.
CSAT is used for gauging the customer’s experience with a particular offering or topic, where customers can rate their level of satisfaction as:
For example, you can ask your customers to rate the quality of your brand’s customer support, on this five-point scale.
To find out CSAT, you can create a survey which can consist of 5 to 10 questions on a given offering or topic, and take the average of responses presented by each customer, which will be considered as that customer’s CSAT score.
Now, once enough responses have been gathered you can consolidate the CSAT sores of the individual customers, add them up and thereafter divide the figure with the total number of respondents, which will help in generating your company’s overall CSAT score using a business CRM software.
Alternatively, you can also draw upon the average score of individual questions, add them up, and then divide it by the total number of respondents to find insights on individual topics, which were there in the submitted list of questions in the survey.
However, CSAT is a stat that measures the satisfaction of your customers on a short-term granular level. Therefore, when this score is used in conjunction with any one of these other two metrics mentioned below, which can be easily found using sales CRM software for small business measuring CSAT becomes more advantageous for your company.
Net Promoter Score (NPS)
While you can use CSAT for rating your brand’s customer satisfaction on a short-term, NPS is used for measuring long-term loyalty and satisfaction of your customers, and hence is considered as the better dependable metrics in your all in one CRM for measuring customer satisfaction with your company.
Unlike CSAT which uses several questions for evaluating customer satisfaction, NPS relies on a single question:
“How likely is it for you to recommend our offerings?”
The responses of an NPS survey are measured on a scale of 0 to 10.
While 0 in this survey is considered “least likely”, figure 10 is considered as the “most likely” answer for NPS rating.
Here is a further breakdown of the middle-order ratings in the NPS score:
Now rather than calculating simply average like CSAT, here an example along with the math used for calculating Net Promoter Score.
For this, let us assume you have found answers from 100 respondents in your NPS survey, with 80 Promoters (80%), 20 Passive (20%), and 10 Detractors (10%) for your brand.
Therefore, taking these above-mentioned figures, to get the NPS, you need to deduct 10% from 80%, while ignoring the 20% that are Passive respondents to come up to 70%, whereby 70 will be considered as your brand’s Net Promoter Score.
Additionally, unlike CSAT your business can also have a negative NPS, which will happen if there are more Detractors than Promoters in response to your survey.
Therefore, while figure 0 is considered to be a “Good NPS”, a score in-between 50 to 70 is considered “Excellent NPS” and anything beyond that is considered “World-Class NPS” for your brand.
Customer Effort Score (CES)
Lastly, to rate customer satisfaction for your business, let us discuss in brief CES, which differs from CSAT and NPS, as it is a customer satisfaction metric that unlike others does not measure the satisfaction of your customers directly.
Rather, CES is a metric that measures the amount of effort the customer had to put in order to complete a specific interaction with your brand.
There are many organizations that use CES using enterprise-level tools or even Salesforce Alternative CRM platforms to access the efficiency of their brand’s customer support activities.
This is because the lesser amount of efforts your customers make while interacting with your company (during the purchase or for clearing their service-related issues) they will remain more satisfied and support your company.
Now, CES is a customer satisfaction rating that is calculated by asking the customer the amount of effort they had to put into an interaction with your brand, on a 5-point scale where:
Hence, while calculating CES a score of or below 2 implies that your business is making life easier for your customers, and your customers are happy, a score of or higher than5 should really make you think again as to how you can better support your customers and take some burden out off their shoulders by revising your business processes.
Therefore to rate customer satisfaction, evaluating the results of either NPS or CES with CSAT and then implementing changes based on customer feedback, is one of the best ways to continually improve customer experience and decrease customer churn over the long haul, which ultimately translates to a bright future and longevity for your business.
Using easy to use CRM software can help generate these above-stated metrics, and thereby provide world-class customer satisfaction for buyers of your products and services as most all-in-one, cloud-based CRM for small business is capable of managing all of your marketing, sales, support, and billing needs and are also priced within your reach.