We often hear the term customer satisfaction. While we could all guess what it means, how would you define customer satisfaction in a simple way? Would it be the amount of satisfaction a customer gets from a brand? Or the way in which a brand manages to meet these expectations? How about both? In today’s article, we’re going to provide you with a simple definition of customer satisfaction. Not only that, but we’ll also look at how businesses interpret customer satisfaction and why they do it.
How Would You Define Customer Satisfaction?
The answer to this question is quite simple. Customer satisfaction is a marketing term that measures how certain brands (more precisely their services and products) meet customer expectations. Maybe they’re surpassing them or maybe they’re not even meeting them. This is for the customer satisfaction percentage to find out.
As you might’ve already been able to tell, customer satisfaction is an abstract term. That’s because there isn’t one universal thing that keeps all customers satisfied. Moreover, some customers are harder to satisfy than others. Some factors that could influence customer satisfaction are the quality of the service or product a company has provided, the price of said service or product, the atmosphere in the store, the attitude of the sellers, and so on.
The way most businesses calculate customer satisfaction is by establishing a satisfaction goal. This goal should be in accordance with the long-term goals of the company. Then, with that threshold in mind, they look either at the specific number of customers that meet the threshold or are over it, or at the percentage. If the customer’s experience with the services or products you provided, as well as with your company in general was positive, your customer satisfaction numbers will increase. If not, you know there’s something you have to change in order to appeal to more customers.
How Do Businesses Interpret Customer Satisfaction?
The most common way of finding out how satisfied your customers are with your services or products is to create customer satisfaction surveys. They gather information related to the customer experience and help you find areas in need of improvement, as well as see which areas you’re performing in best. Some of the issues the surveys address are the quality of a certain product, the value they get for the money they pay, the product availability, the delivery time, the time wasted at checkout, the atmosphere in the organization or store, the personnel’s attitude, convenience, and others.
Why Do Businesses Look at Customer Satisfaction?
There are many reasons why businesses analyze customer satisfaction. For one, this indicates customer loyalty and tells them whether they should expect a repurchase or not. Then, it helps them differentiate themselves from their competitors. Moreover, it can reduce customer loss. That’s because it tells businesses what they have to work on in order to get better. Customer satisfaction also increases customer lifetime value, helps the business get a good reputation, and saves the company money by retaining old customers instead of struggling to get new ones.
We hope today’s brief guide has managed to answer the question “How would you define customer satisfaction?” and others you might have had regarding this topic.
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