Why is customer satisfaction important for a company?
Customer satisfaction is the key to both customer retention and customer acquisition. Satisfied customers are not only likely to purchase from you again; they also have the potential to become brand advocates and share their great experiences with others, both online and offline.
On the other hand, unsatisfied customers are unlikely to return to a business without additional support, and often spread negative word-of-mouth, deterring more potential customers from your business.
Measuring customer satisfaction
It is imperative for businesses to monitor customer satisfaction levels. They often do this with customer satisfaction surveys. Customer satisfaction surveys are invaluable resources for many reasons. They help companies measure satisfaction, find unhappy customers, and identify potential brand advocates.
Customer satisfaction ratings
These can have very beneficial effects. Good ratings keep employees focused and motivated on exceeding customer expectations. Low ratings provide warnings of potential pain points that may affect revenue in the future.
Customer satisfaction metrics
Customer satisfaction metrics help you understand how happy or unhappy your customers are overall, which is critical for customer retention: 96% of unhappy customers don’t complain, but 91% of them never return (1Financial Training Services). Despite common assumption, price is not the primary reason for customer churn--poor customer service is (Accenture global customer satisfaction report). Asking every customer for feedback helps you discover unhappy customers and fix their problems before they decide not to return.