Tuesday, August 13, 2013

How to Measure Customer Satisfaction

How happy are your customers? If you don't know the answer to that question then it might be time for some additional research. The best way to expand your company is to make sure you're giving your customers what they want.

The only way to find that out is to gauge their level of satisfaction. Professor Scott Smith, the co-founder of Qualtrics, has come up with a simple and direct approach to determining customer satisfaction.

Here are the four fundamental measurements he suggests you apply to your business:

Perceived Quality

You can ask your customers to fill out a survey card and leave it at your store or answer a quick online survey. Either way, the first question to ask is a variation on the theme of "How was your experience with our company?" Right off the bat you're going to know how the customer feels especially if you ascribe some sort of rating like a scale of 1 to 10 or adverbs like "great, good, so-so or bad." This will become your baseline for customer satisfaction.

The Loyalty Measurement

Every business depends on loyal customers coming back to make additional purchases. The hope is that those customers will take the next step and recommend that company to someone else. With the loyalty measurement you'll be asking, "Would you recommend our company?" It's a yes or no question that you can break down to degrees such as "very likely, somewhat likely, etc." It's a terrific snapshot to judge how many referrals your customers can bring in. That might inspire you to take it a step further with some sort of incentive program.

Attribution Satisfaction

These are the survey questions you'll be asking that get into the specific of a particular product. In other words, you want to find out what attracted a customer to that product. Was it the price? Availability of sizes? Ease of shipping? Colour? There could be many factors that went into the purchase. Finding those out will help support future product launches and sales campaigns.

Intention to Repurchase

There are some products that are geared to be bought only once while others require frequent repurchasing. Either way, you want to know if your customer was happy enough with your business that they would do it all over again. A customer with a positive shopping experience is more likely to buy that product again, perhaps as a gift. At the very least they'll be recommending your company to others.

Take note that all the positive information you gather in these types of surveys can be used in your own marketing campaigns. If you can have a 100% customer approval rating why wouldn't you share that with the world?

Of course, you won't know any of this unless you ask!