How you should measure customer satisfaction to improve retention rates

Customers are likely to repeat purchases with companies that offer outstanding customer service and prioritize customer satisfaction. Delighting customers improves an organization’s sales, recommendations, and public image and keeps companies ahead of the competition.

Last updated on: 
August 10, 2023
Shanthala Balagopal
Shanthala Balagopal
November 8, 2022
7 min read

Customer satisfaction measures how well a brand’s products, services, price points, and experiences meet a consumer’s expectations. A recent Zendesk CX trends report reveals that 81% of consumers will make repeat purchases from businesses that provide a positive customer experience.

This blog discusses metrics, steps, and channels to measure and determine a customer’s satisfaction with a product or service.  

What type of metrics measure customer satisfaction? 

Contact center metrics that focus on customer satisfaction gauge how well, efficiently, and consistently an organization serves its customers. These metrics aim to boost consumer experiences and service levels across the entire business, which increases customer retention rates. 

Tracking these customer satisfaction KPIs helps maintain a high service standard, enhance customer support, and boost loyalty. 

Net promoter score

NPS is a customer satisfaction and loyalty measurement obtained by asking customers about their likelihood of suggesting your product or service to others. A company's Net Promoter Score is a figure between -100 and 100.

To calculate NPS, ask questions on a scale of 1 to 10. Deduct the proportion of customers who respond with a 6 or below (known as "detractors") from those who respond with a 9 or 10 (referred to as "promoters"). Customers who respond with a 7 or 8 are "passives." NPS is negative when there are more detractors than promoters, and it's positive when there are opposite conditions.

CSAT survey

Customer satisfaction (CSAT) surveys help support teams understand a customer's level of delight with your organization's products, services, or experiences. CSAT gauges the general level of client satisfaction with your goods, services, or customer success program. 

Typically, businesses ask for CSAT ratings on a scale of 1-3, 1-5, or 1-10. You can calculate CSAT scores by adding all scores and dividing the total by the number of respondents. CSAT helps teams follow customer sentiments and make improvements to service delivery. 

Customer effort score (CES)

CES is a single-item metric that tracks how much a customer has to do to resolve an issue, such as getting a question answered, a product purchased, or returned or a refund. Customers rate the convenience of their experience with customer options ranging from strongly disagree (score 1) to strongly agree (score 10).

Use the average of each response to compute the CES score. Naturally, the easier a task is to complete, the better the experience. Making a customer experience low effort is one of the most effective strategies to lessen dissatisfaction and disloyalty.

Customer happiness index (CHI)

CHI quantifies the degree to which a buyer is pleased with a product, service, or support experience. Product usage depth, stickiness, and product usage frequency are three essential factors that the CHI considers when measuring customer service quality.  

Usage frequency indicates how often a customer uses your product. Usage depth gauges the extensiveness and effectiveness of your product's features, and stickiness helps determine the most valuable features to customers, which keeps them using the product.

Pathlight is a quality management solution that enables organizations to maintain a certain standard across all support teams. 

“By helping me focus on my team and CX reps focus on helping customers, Pathlight will continue to contribute to our growing business and revenue, customer satisfaction, and career growth for the team at Pair Eyewear, ”  Ben Segal from Pair Eyewear. 

See how Pathlight enabled Pair Eyewear to track major indicators, boost agent performance, and increase CSAT. Read our case study.

6 steps for measuring client satisfaction

Improving customer satisfaction has a direct impact on revenue. A study by Deloitte reveals that customer-centric companies are 60% more profitable than companies that aren’t. Prioritizing customer service increases customer retention rates and company profits. 

Here’s a simple six-step process to help you measure and target customer satisfaction: 

1. Define your goals

Customer satisfaction requires that you take time to develop goals that align with business objectives for your team. Goals provide your team direction and focus, coordinate everyone's actions, and inspire results that will lead to business success. 

Clear goals aid feedback opportunities and give agents benchmarks. Setting goals that follow the SMART philosophy — specific measurable, attainable, relevant, and time-bound — ensure that your team members move up the customer service scale in your industry. 

2. Create a plan

A customer service plan offers precise guidelines and a clear outlook for the department's future. Implementing a professional customer service plan, which includes policies and procedures can simplify customer requests, add value, and enhance workplace morale.

A plan enables agents to collaborate, improve problem-solving skills, optimize the contact center, and enhance customer care across all fronts. 

3. Choose a survey metric

Customer satisfaction metrics help you to collect different kinds of data from customers and achieve multiple customer service goals. In selecting a survey metric, you need to consider the peculiar needs of your business. You can measure different values such as satisfaction, experience, and customer loyalty. 

4. Design effective surveys

To find out about expectations, perceptions, satisfaction, and opportunities for development, you need to conduct simple customer surveys. Acquiring data to implement your selected metrics is most effective with website or email surveys. When you target customer surveys, you can collect quantitative data — numerical and statistical data — and qualitative data — feelings and opinions of customers. 

5. Collate and analyze the data

When analyzing collated data, examine the relationship between survey responses and customers’ actions such as repeat purchases and website visits. You'll be able to spot some interesting patterns and learn how user behavior is affected by survey results. This approach eliminates trial and error and helps with precise planning and funds appropriation. 

6. Rinse and repeat

To ensure predictable outcomes and transferable execution-related knowledge, you need to reexamine, organize, and record all aspects of your operation. Focus and replicate what helps the business expand and innovate often. Customers retain an interest in businesses that introduce new concepts and improve service delivery.  

Channels to measure client satisfaction

According to a 2021 Talkdesk global report, customers value the ability to engage with companies on their preferred channel. To effectively measure satisfaction, it’s best to reach customers on the channels they prefer.

  • Live chat. Customers ask questions and expect prompt answers while using live chat software that is integrated into a company's website.
  • Social media. Social media offers reach, scale, and targeting audiences at a lesser cost than practically all other platforms. Concentrate on the social media platforms that are most appropriate for your brand while creating a strategy.
  • Online surveys. Carry out post-purchase polls on buyers based on their cookies and viewing history. 
  • SMS. Bulk messaging is rather inexpensive and enables you to place a survey in the hands of your clients. To successfully use this channel, agents must be able to manage between three and five SMS chats at once and provide fast responses. 
  • Email. You can build a conventional survey and link to it in an email requesting customers to participate or you can embed the first question in the email.
  • Post-call survey. One of the most common methods of gathering client feedback at a contact center is post-call surveys. The consumer is asked to rate the interaction on a scale of 1–5 or 1–10, depending on how satisfied they were with it, which helps to determine how well an agent manages customer interactions. 

Improve customer satisfaction with a quality management solution

Optimizing customer support touchpoints with improved agent performance results in quality experiences, sales, and brand loyalty. Free up the time your team spends on manual tasks by adding a quality management solution to your tech stack. 

Pathlight is a complete performance intelligence solution with quality and workforce management that allows teams to identify gaps in customer interactions and align service delivery with company objectives. 

See Pathlight in action today. 

Frequently asked questions 

How to measure customer delight?

You must understand your customer and map out their experience with the product or service you provide to measure customer delight. Use surveys or support channels to assess satisfaction. You can also plan satisfaction surveys into your customer journey. 

How should you handle an angry customer?

Practice active listening and empathy, comprehend the customer’s issue, weigh your options,  provide a solution, describe what happens next, and check to see if the client is happy with the result. It is crucial for contact center agents to avoid taking client feedback personally. Additionally, develop a connection with the client and convince them that you are happy and ready to help.

Want to see a custom demo of Pathlight or get help finding the right plan? We'd love to chat.

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