What Is Customer Satisfaction And Why Is CSAT Still Necessary?

Published on:
Thu Feb 17 2022
Customer Experience

If you ever received a brief satisfaction survey after making a purchase or after a visit to your dentist then most likely the company is trying to measure your customer satisfaction. Due to high competition, digitization, and an increased focus on customer experience, customer satisfaction has become one of the most important metrics in the experience industry.

Simply defined customer satisfaction is a metric that calculates how pleased your customers are with the company’s products, services, and capabilities. Customer satisfaction information such as surveys and ratings can aid a company in determining how to improve its products and services.

As a researcher, you can create a detailed survey to gauge customer satisfaction however at times even a simple survey with a few questions can be insightful and effective.

According to reports, “42% of customers are willing to pay more when offered a friendly, more welcoming customer experience”.

Before you can assess customer happiness, you must first understand the following terms:-

  • Who are customers?

A customer is a person or a business who buys products or services from a company. Customers are important because they drive business revenues and without them, no business can’t exist.

  • How can you make customers happy?

Companies should never make such a mistake of assuming that they know exactly what their customers need. Instead, they should understand the voice of their customers, using tools such as customer surveys, customer feedback, focus groups, and polling.

Importance Of Customer Satisfaction

When a customer leaves your store or clicks away from your website, it is much easier to forget about them. So, why should we follow up with our customers and pay attention to their satisfaction levels? Here are some of the most crucial causes that define the importance of customer satisfaction:-

1. Reduce customer churn

Customer churn refers to customers who stop purchasing from you, whether it’s after their first transaction or after numerous years of loyalty. Customer attrition can be quite costly to your company. But satisfied customers are more likely to stay loyal to your company. So, that’s why customer satisfaction is important to reduce customer churn.

2. Identify customers who are dissatisfied

Identifying and resolving dissatisfied customers is important to any company’s success. Getting the customer feedback and acting on any negative response by addressing problems and making adjustments, shows that customers are your top priority. And when you show the unsatisfied customers that you care about them, they are more likely to return.

According to research, “21% of consumers expect companies to respond to negative reviews within 24 hours”.

3. Helps to acquire new customers

One of the most effective ways to acquire new customers is through customer evaluations. Increased customer satisfaction leads to an increase in positive customer reviews. More potential customers will be attracted to your business as a result of these great testimonies.

According to reports, “78% of people trust online reviews as much as a recommendation from a friend or a family member”.

4. Customer Satisfaction can guide product updates

Negative customer reviews act as alerts for the companies and can let them know when a product or service has a problem that needs fixing. By keeping a close eye on CSAT, product development teams can easily identify these issues and quickly resolve them.

While you focus on other aspects of your business, happy customers keep coming back to buy from you, referring you to their friends, and leaving nice reviews online. This ensures a consistent and, hopefully, growing revenue stream without your constant efforts. Of course, you should monitor customer satisfaction on a frequent basis to ensure that you are still achieving the mark.

If you are looking to measure and optimize customer experiences, then Dropthought can certainly help!

Dropthought is a user-friendly, omnichannel, and real-time customer experience management platform. We empower companies in different verticals to create delightful experiences for customers across their customer journey. Get detailed analysis and insights from data to exactly know what your customers think and what actions you need to take to delight them.

With a dedicated customer success team, we would ensure that you are optimizing your Customer Experience programs and strategies to create great experiences!

Learn more by simply clicking here.