Customer satisfaction plays a crucial role in the company’s success, which is particularly noticeable in two ways. On the one hand, satisfied customers will continue to buy from a company—often in increasing quantities—while the vast majority of dissatisfied customers do not buy there again. On the other hand, customers who are satisfied with a product or company often recommend it to the circle of friends and families, which allows additional customers to be acquired by the company without any effort.
It is therefore important to have an overview of customer satisfaction. Some certainly refer back to the well-known channels, such as rating portals or social media. And it is true, here you get to read reviews from buyers again and again. However, if you only rely on ratings to assess customer satisfaction, you take a dangerous path. Because one thing about customer satisfaction can put a spanner in the works: Studies show that, in most cases, dissatisfied customers simply leave—no complaint, no negative criticism; they are just gone. Before that happens, the company must already know how satisfied the customers are and where there is potential for improvement. This explains precisely why a company has to measure customer satisfaction. Specified key figures such as the above-mentioned CSAT, NPS, and CES are therefore ideal to help do so easily and quickly and also to ensure their meaningful value.
Three Good Reasons to Use KPIs
Anyone who has not worked with these figures before may wonder what makes the metrics an effective tool for measuring customer satisfaction and why you should place trust in the metrics. This can be answered by means of three keywords:
Simplify: As can be seen from the previous definition, the underlying data obtained from, for example, the survey of customers is simplified by the key figures and merged into one value. Using the example of the customer survey, means not all responses need to be evaluated in a meaningful way, as the key figures can be representative of the content of the responses. The answers can be summarized by means of the key figure, simplifying analysis.
Condense: Since different values are usually merged into a key figure, the data set is automatically condensed. This reduction also allows you to keep an eye on values for a longer period of time without becoming confusing. Ideally, key metrics help to understand important data more quickly and to be able to interpret it.
Specify: Simplified presentation and precise answers? This is not a contradiction, because key figures are carefully shaped from different numbers. In doing so, the underlying formula must be able to withstand an economic test. If this is the case, key figures help to interpret certain changes quickly and thus formulate precise recommendations for action.