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Author: Dambroz J. E

I love to understand why people do that they do and how things work, so I can influence in human behavior and provide amazing experiences.
Differences between NPS Top-Down & NPS Bottom-Up

Differences between NPS Top-Down & NPS Bottom-Up

THE NET PROMOTER SCORE (NPS)

Net Promoter Score (NPS) measures the loyalty that exists between a provider and a consumer. The provider is the entity that is asking the questions on the NPS survey. The consumer is the customer, employee, or respondent to an NPS survey. It gives an indication of the growth potential of your company and your product. It gauges the customer’s loyalty to the company. It serves as an alternative to traditional customer satisfaction research programs that were tedious to manage.

There are two basic approaches to collecting the Net Promoter Score (NPS).

  1. NPS bottom-up and
  2. NPS top-down

NPS BOTTOM-UP

This is where the survey is targeted towards the customer involved in the transaction. The bottom-up NPS surveys are generally conducted to understand a customer’s experience at a very specific interaction or touchpoints. Here, the goal of the survey is to know how satisfied the customers are with a specific process/ transaction/ touch point.

It is not aimed to evaluate the overall customer loyalty to your company but it measures customer’s likelihood towards a particular process. The Bottom-Up NPS can act as a frontline feedback tool that can diagnose customer problem about transactions. These feedbacks help an organization in taking corrective measures to rectify the problems with existing processes. A typical Bottom-Up NPS directly refers to a transaction, such as:

Based on your recent billing experience, how likely are you to recommend us to a colleague or client on a scale of 0 to 10?

Transactional NPS surveys are carried out in both Business-to-Consumer B2C and Business-to-Business B2B organizations. Having said that, a B2C organization will have a larger number of transactional NPS as compared to that a B2B organization. Since the frequency of transactional NPS surveys are huge (they are generally conducted every weekly or twice a week), it is very important that you reach out to your customers at the right time.

You are always required to reach out to your customers just after any interaction so that the customers don’t forget that transaction (or the experience associated with it).

Also, it is equally important to identify the important touch points for which you are aiming to conduct the Transaction NPS surveys. Too many surveys might irritate the customers.

Pros:

  • It gives immediate feedback to the company since it is frequently done hence the best corrective measure can be put in place immediately.
  • It is very simple to use compared to other survey approaches

Cons:

  • It requires a lot of information frequently hence some customers get tired giving the feedback frequently

 

THE TOP-DOWN NPS

The Top-Down NPS give you an overview about how your customer feels about their entire journey with your organizations. These surveys generally help you understand the likelihood of your customer recommending you to her friends or colleagues. In a B2C set-up, relationship NPS surveys let you compare your organization with your competitors. It also depicts the overall health of the company in terms of customer retention and repeats purchase.

Relation NPS surveys generally target to know the overall customer experience of your customers. Hence, the survey question is straight forward as:

How likely are you to recommend us to a colleague or client on a scale of 0 to 10?

Globally an NPS leader is usually the market leader. For example, companies like, Apple, Nike, Netflix and Amazon have superior NPS score as compared to their competition and they are market leaders in their respective fields as well.

The Top-Down NPS surveys are generally conducted quarterly, half yearly or annually.

Pros

  • Its results can be compared from to time hence one can know the progress of the organization

Cons

  • It focuses more on the relationship rather than transactions
  • It requires standard data so that comparisons can be made.

How to choose between Bottom-Up and Top-Down NPS

Bottom-Up NPS will help you identify who loyal customers are but a Top-Down NPS will let you know the areas of improvement at each touch points. Bottom-Up NPS can get influenced by the Top-Down NPS but the Top-Down NPS is independent and has a score of its own. For example; A customer might give you a poor rating for your worker but might give you a good rating for your company.

3 Strategic Ways to Increase Customer Loyalty

3 Strategic Ways to Increase Customer Loyalty

It is difficult to win the favor of a customer. Retaining them is another difficult job. The current market is so competitive that everybody tries to offer grade A services. The first priority of any business is to provide the best consumer experience. Small business owners should know ways of starting up and maintaining a customer base. Customer loyalty makes a business to stand out conspicuously. Satisfied consumers maintain their preference to businesses where they were served well. The relationship created between business and client keeps them coming. People should know that loyalty means more than enjoying services. Business people should know ways of attaching the best memories to their clients. Keep reading to know strategic ways of increasing customer loyalty.

Personalize Your Relationship with Customers

Individuals are more likely to show their lasting commitment to your brand is you show genuine interest in them. Business people should establish personal relationships with clients. To get exact information, designate several representatives to specific clients. Such a situation creates better rapport. The business owner will have relevant information for use in follow up visits. Organize for operations that are instrumental in building your relationship

Exceed Customer Expectations

The secret to achieving in any business is by going an extra mile. The entrepreneur should do this often. Nowadays, business people create media platforms where they engage their clients in conversations. All customer feed backs should be taken seriously. Use such information to create opportunities. If a client gives a positive feedback, your team should find ways of improving that product. Once you have implemented the changes, reach out to that particular client and thank them. Remember to be personal when thanking the clients. Establish a loyalty program. Develop ways to thank clients who have remained faithful. Actually, it is a good idea to unite them in a party for drinks. Above all deal with complains promptly. This shows that your business cares for their needs.

Always be Available

Be there when they need you. Customer service matters. Your firm should anticipate customer problems and deal with them before. It could mean calling them to ask if they are doing fine. Ask if the product is good. Reduce consumer stresses by urgently responding to their needs. They will always remember that you are available. That is what will make them to come back.

Client retention is an important aspect in any business. It takes hard work and determination to bring customers to your business. People make offline and online efforts. It is important for any business person to retain his clients. They are the people who decide whether you will continue working in that company. Royal companies believe in the capabilities of your company. That is why the will not shy to refer you to their friends and acquaintances. Customer satisfaction is a major determinant in maintenance of loyalty. Business owners are advised to interact with consumers in ways that they prefer. Try reaching for them in social media. It is the easier option. Do not lie to your clients. Instead find amicable solutions. If they cannot be found, tell them the truth.

The 7 biggest mistakes in Customer Service

The 7 biggest mistakes in Customer Service

The smartest companies, the ones who succeed understand the importance of customer service. They understand what drives customer loyalty and greater profitability. Some companies do a better job than others because they know the mistakes that are commonly made. Most of the mistakes are a result of recurring bad habits and bad choices. These mistakes can be avoided if you understand them. Here are the seven common mistakes that companies make when it comes to customer service.

1. Forgetingt that the customer is a human being with feelings

Customer service is all about pandering to customer’s needs. You need happy customers to keep your business going and to attract new customers. Put yourself in the shoes of your customers. Treat them as you would like to be treated and you will find that the experience goes both ways. Happy customers make for a happier work environment and a happier. It’s an overall happier experience. It is important to realize that sometimes it’s the little things that bring joy. You may serve quality but is it served with a smile, in a clean environment with air-conditioning and anything else that makes the customer’s experience a more positive one? If you want to avoid the mistake of not treating customers as humans with needs start with building an organizational culture that understands good customer service.

2. Failing to understand the importance of measuring service effectiveness

It is often hard to sell the benefits of customer service if you do not have a measure of the return on the investment that can come with having a plan in place. Companies that are focused on customer experience should have some credible data supporting that what they are doing is worth the trouble, however, you can only have credible data if you actually focus on the customer experience. That’s where it gets tricky but successful companies get themselves into situations that they can profit from. It’s a catch 22 situation.

3. Using outdated systems for customer service

You would think that by now, companies understand technology and have caught up with communications channels but a lot of them aren’t using it to do more than send annoying text messages and emails. Some companies are still struggling with CRM systems. If you still don’t know what CRM is then you are a decade behind the times and if you are that far behind how in the world will you know what tools you need to have the effects that you want to get from your interactions with customers. There is virtually little information you can learn if you aren’t connected to the right channels. If you don’t know how, find someone who can help you navigate your way through. Technology can be murky.

4. Not understanding the importance of solving issues in real time

Customer service is about instant gratification. Customers want to know that you are taking their problems important enough to give them top priority. If you can solve a customer’s problem on the spot before the frustration sets in then you have a pretty good handle on customer service. For that to happen you need a team that is not only well trained but is empowered to make decisions at a moment’s notice. You should start by figuring out your most common customer service issues and implement ways for your staff to solve them and give your staff the permission to escalate those they can’t to someone who can deal with them.

5. Having a hard negotiation process

Customers do not want to have to negotiate with you over things they feel they shiuldn’t be negotiating on. You don’t have to take the approach of the customer is always right but you do need to be accessible and be seen to be making an effort.

6. Being reactive

You should not take customer dissatisfaction personally. Sometimes it’s really not your fault. Find ways to keep your customers happy without being reactive. Instead, focus on putting systems in place so you can anticipate problems before they happen.

7. Failing to Follow Up After Customer Service Issues are Resolved

Following up on customers is important because it gives you the opportunity to show your customers that you are proactive. It also allows you to measure your own customer relations plan. Customers remember that and will appreciate the fact that you cared enough to want to know if their issues have been, It also shows you the holes that need to be plugged in your company.

The Importance of Customer Satisfaction for Your Marketing Strategy

The Importance of Customer Satisfaction for Your Marketing Strategy

The Importance of Customer Satisfaction for Your Marketing Strategy

In marketing, customer satisfaction is a means of determining whether or not the products and services business or a company is offering meet or exceed the expectations of the consumers. Customer Satisfaction as a marketing strategy can increase the profitability of a business and see it grow. Every entrepreneur should think about the customer satisfaction marketing strategy as it comes with a lot of benefits including;

  • Encourages customer retention and reduces customer churn.

Contrary to what most people would expect, the main reason contributing to customer churn is not price, but it is the poor quality of products and services offered. If you work hard to satisfy your clients, they will keep doing business with you.

  • Encourages repeat buying.

Satisfied customers tend to come back and do business with you. This will not only help you increase your revenue, but also establish a good business relationship with you.

  • It limits corporate crises

If your customers are satisfied with your products and services, they will want your company or business to survive any crisis that may come around. They may even try to assist you in ensuring the business survives. A huge advantage to your business.

  • Disclosing your brand through positive word of mouth.

Satisfied customers can sell your brand and business for you. They recommend your products and services to their friends and relatives through the word of mouth communication.

You need to understand that word of mouth communication is vital to your business because most potential customers tend to trust the person that has already used the product or service more than they can trust you.

A happy customer can take their time and share online the experience they just got from, say, a fashion shop. Again, unhappy customers can damage your business through negative word of mouth communication.

  • Boosts market share and revenues.

As discussed earlier, customer satisfaction promotes customer retention. This fact contributes to increased market share and revenues.

A study done by the Strategic Planning Institute shows that companies that had very high customer satisfaction ratings experienced a market share growth of up to six percent and in general, they charged up to ten percent more for the product and services they offered.

It is imperative that you understand that it is always cheaper to retain a customer that to obtain a new one.

So how can the satisfied customers be used to generate marketing?

  • Online reviews

Experienced customers and potential customers tend to do a lot of research on the products and services they intend to acquire. Product reviews by consumers always come in handy. Reviews often have information about brands, services, workability of products, experiences, and recommendations.

Now, satisfied customers can help generate marketing of your business by positively reviewing your products and business online.

  • Recommendations and referrals

Happy customers will recommend your business to friends and relatives through the already discussed word of mouth communication.

 

How to insert customer satisfaction into a marketing strategy.

A wise entrepreneur will learn from customer satisfaction and use it to improve and grow their business. You can involve customer satisfaction in your marketing strategy by applying the following tips.

  • Taking advantage of dissatisfaction.

Unhappy clients will often share their experiences or complaints with their friends, coworkers, relatives, on product review sites, on blogs or social media. Use the dissatisfaction as an advantage and attempt to improve the goods and services you are offering.

You can reach out to them, listen to them and inform them about the changes you have done. This will promote your customer experience.

  • Be keen on the feedback.

As a matter of fact, only the customers know what they want. Listening to them and getting their feedback can be a great way of knowing what they expect of you. They can also tell you what you need to do to improve their satisfaction.

Again, reaching out to your customers for feedback can help you realize what your competitors might be doing right or wrong. This will assist you with your marketing strategy.

  • Customer service.

By all means, customer service is directly related to customer satisfaction. You can insert customer satisfaction into your marketing strategy by using customer service. Advising your clients and potential clients about the various products and services your business offers is not only a promotional strategy, but a means of giving audience to them.

Why you need to listen to your customers

Why you need to listen to your customers

For any business to grow, customer feedback is necessary. It involves a process of obtaining the opinions of the customers on products or services a business offers. It always provides an entrepreneur with insights with which they can improve and grow their businesses and promote the general customer experience. This article will discuss the importance of customer feedback. Read on to discover why you need to hear what your customers are saying and the customer feedback methods you can use.

Here are the reasons you need to listen to your customers and the benefits that come with it

Only the consumer knows what they want

The customers know exactly what they want. Your duty is to take advantage of their needs by listening to them and meeting their needs. It’s often hard to guess what the consumers. So keep finding out what they desire, and they will keep coming back.

It’s a good way to measure your customer satisfaction

The main way to know whether or not your products and services meet your customer expectations is by measuring customer satisfaction. Customer feedback is often a critical tool in measuring customer satisfaction.

Improves customer retention while reducing churn

Make your customers happy, and you will retain them. Having regular communication with your customers will enable you to determine whether or not they are happy. You stand a greater chance of losing your clients to the next entrepreneur if they are not satisfied with your products and services. Use feedback from your unhappy customers to make the appropriate adjustments that will make keep doing business with you.

Customer feedback helps grow your business

No entrepreneur wants a stagnant business. As discussed earlier, the customers know what they want. Customer feedback helps you to know the kind of services and products the market wants. Most established and successful business and companies have devised means of giving their customers services that meet and exceed their expectations.

Leads to an improved customer experience

Listening to your customers lowers resistance besides building trust. Also, it is important to note that listening to their clients makes them feel valued. This fact is critical in promoting customer experience.

 

Methods of gathering feedback from your customers.

 

  • Surveys

This method is preferred by many entrepreneurs because it is easy to start, collect data, analyze and scale. While setting up a survey, remember to keep it short. Also, begin with the open-ended questions and only ask questions that will be useful.

With many customers shopping online these days, short online surveys can come in handy. They have been known to have excellent response rates. You can get the survey to pop up after a customer has browsed on your website or an online store. On an offline platform, questionnaires are a good option.

  • Focus groups

Often involving small groups of between 4 to 15 people, a focus group is another a way of getting customer feedback by asking the clients their opinions, beliefs, perceptions, attitudes and expectations on your products and services and the entire business.

They are usually used at the early stages of business especially when the entrepreneur wants to know the target market and what the clients would expect. The advantage with focus groups is that they are conducted in the real world environment as opposed to on an online platform.

  • Point-of-Sale

This method is a kind of survey that is presented to a paying client mostly through a check-out machine or an electronic terminal. It is an efficient way of obtaining feedback as it comes with some advantages.

  1. It does not require an interviewer, and this gets rid of any chances of an interviewer influencing the responses by their cues.
  2. They are fast. With point-of-sale surveys, you will not need to wait for the responses from the customers.
  3. It is flexible in the sense that the entrepreneur can implement them in various ways with different technologies.
  • Social Media

Now, social media provides a perfect platform to obtain your customer feedback. There are several ways you can listen to your clients through social media. Go online and create accounts for your business on multiple social media networks. From here, you can directly connect with not only your customers but potential customers also.

For instance, you can hold a chat on Twitter with your clients and ask them questions about your business. You can again conduct polls and surveys and ask your clients and potential customers about their opinions on the product and services you are offering.

Encourage feedback and respond to mentions on all your social media accounts. Be aware of what the customers are saying and act on the complaints to improve your business.

  • Communities and groups

You can actively listen to your customers through this method. Online customer communities, for instance, have become excellent means that most successful companies are using to connect with their customers. The feedback you get from your clients will help you accelerate sales, differentiate from your competitors, and stay up to date on what the market expects.

You can create online business communities and groups on platforms like Google+ and Facebook.

  • Email and Web Forms

Email has been a reliable way of keeping in touch with customers for years. When trying to listen to your customers using email, have an organized feedback system and be sure to have speedy responses. This will ensure effectiveness. Web forms are almost like online surveys. You can easily create your web form online with relevant questions and request your customers to answer them.

  • Observation

One of the most fundamental ways of listening to your customers is observation. You can learn what the market requires by looking at trends. Observe what is lacking in a particular setting and provide it. If for example, you are in the fashion industry, look at the community, see what the people like or don’t like putting on and use it provide the right products.

  • Customer Service

Customer Service involves the advice and assistance that a business or a company provides to its clients. They often provide good grounds of listening to the customers. The customers are most likely going to ask questions about your products and services during a customer service session. Even if they don’t, it is wise that an entrepreneur takes that time to ask them a few questions about their business.

8 Customer Satisfaction tips and trends for 2017

8 Customer Satisfaction tips and trends for 2017

Looking forward to enhancing your customer satisfaction in the year 2017? Well, you will have to up your game. And yes, this calls for more than just planning. It calls for exploitation of all available platforms and avenues which increase contact with the customers. While utmost customer satisfaction remains at the top of every company’s priorities, it is worth noting that only a few of these companies manage to exploit the available avenues and reap full benefits. Why is it so? While a list of the reasons behind failure of some companies to ensure total customer satisfaction is open for debate and remains a topic of mere speculations, there are some reasons which are obvious. For instance, if a company does not establish a link with their clients; then satisfaction remains a dream that will never come true for them.

Let’s flex muscles and delve into details on 8 Customer Satisfaction tips and trends for 2017:

1. Facebook live to share company news:

Social media has proven quite crucial when it comes to establishing a bond between companies and their clients. Facebook live is one avenue that has provided a direct link between companies and their clients quite effectively. How exactly does this platform enhance customer satisfaction? Well, facebook live provides an opportunity for a company to get real-time information and feedback from their customers concerning their goods or services. This way, a company can make improvements on their products in order to make them perfect for their clients. It is a platform you certainly want to use if at all total customer satisfaction is your 2017’s resolution.

2. Use a NPS software (loyalnow):

Use of Net Promoter Score is yet another amazing trick that can be employed to enhance customer satisfaction. With an ability to detect customer’s concerns and feedback about any product, it is quite effective if at all a company wishes to view what customers have to say about their product. Collecting real-time information across the globe, you can never be wrong for choosing it. And yes, if enhancing customer loyalty and tracking customer sentiments is of any benefit to you, then you need this software. It is certainly a game changer for 2017 that will see your customer satisfaction shoot up ridiculously fast.

LoyalNow is a free NPS platform to learn fast how to engage your customers with actionable feedback.

3. Explore data to identify churn behaviors:

This is yet another important tool for ensuring customer satisfaction in the year 2017. If at all your company cannot account for the number of customers they gain or lose within any particular duration, then it is trading on risky grounds. What is customer churn? This is a data mining technique used to calculate the number of customers lost. It is a trick that can enhance customer satisfaction as companies strive to hold them back

4. Create a slack channel to support your customers:

Use of slack channels is a technique that has proven quite effective when it comes to building customer satisfaction. What does it entail? Slack channel provides a platform for customers to have a direct contact with support team at any particular time. This way, customers can express their dissatisfaction give their recommendations about any particular product. With slack channel providing an organized structure for easy accessibility, customer satisfaction is greatly improved.

5. Use intercom at company website:

Providing one way or two way communication between you and your customers, intercom is definitely a must-have for you. This way, you can engage your customers in healthy communication and discussions which yield important information on how to improve your product. And yes, having an Intercom at your company website gives customers a feeling of security and trust since they believe that their grievances can be handled. This technique has seen those who have used it reap handsomely. Perhaps it is time you also used it for your company.

6. Cross-department alignment to see customer journey:

Employing cross-department technique is yet another important trick for enhancing customer satisfaction. By employing this technique, several departments are strategically positioned to monitor specific aspects but the goal of all departments is always one. This is quite important when it comes to tracking the progress of your customer. It is a trick that should be employed by any company that wishes to have an improved customer satisfaction.

7. Webinars about new products or features:

Webinar which is basically a web-based seminar is also quite crucial when it comes to enhancing customer satisfaction. It is a platform which can be used by companies to inform their customers about presence of new products or features. This way, customers stay updated on any changes on existing products or introduction of new ones.

8. Active contact for understand customers:

Establishing active contact with customers is paramount if at all your company is to make it in the year 2017. Yes, establishing contact gives one an opportunity to get information from their customers about any product. This way, a company can make improvements on the product or service.

In a nutshell, as 2017 fast approaches, customer satisfaction ought to be the pillar for better fiscal records. Armed with these tips, it is time you employed them.

The definitive guide for Customer Satisfaction

The definitive guide for Customer Satisfaction

What is customer satisfaction

Satisfaction is the best indicator of how likely it is that the company customers will make further and recurrence purchases.

Individuals who rate their satisfaction level as high are likely to become return customers and might even evangelize for the company.

When a customer is satisfied with a product, he or she might recommend it to friends, partners and colleagues. This can be a powerful marketing advantage.

In the other hand individuals who rate their satisfaction level as low, are unlikely to return. Further, they can hurt the company by making negative comments about it to prospective customers.

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.

Marketing Metrics: The Definitive Guide to Measuring Marketing Performance

Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold

Marketing Metrics: The Definitive Guide to Measuring Marketing Performance’

How create a customer satisfaction survey

Online customer satisfaction surveys give you the feedback you need to keep customers happy and turn them into advocates.

  1. Make it accessible by posting it directly to their Inbox. Give your customers access by creating a feedback survey, which can be submitted via app as well as email.
  2. Tonnes of questions complicate your analysis and boring your users.
  3. Keeping answering options simple. A rating scale is better because it’s quick and easy.
  4. No one likes completing surveys. Make it as painless as possible.

Methods for measure customer satisfaction

Companies who measure customer satisfaction are 33% more likely to describe themselves as successful than those who don’t.

  • Customer Satisfaction Score (CSAT)

The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger range is not better, due to cultural differences in how each person rate their satisfaction.

The CSAT is really directness. The downside, however, is that satisfaction is hard to estimate, even for the customer. It’s directed at a sentiment, which is fleeting and mood dependent.

  • Net Promoter Score (NPS)

The Net Promoter Score (NPS) it’s probably the most simple and popular way of measuring customer loyalty.

Customer are asked how likely they are to recommend you on a scale from 1 to 10.

The amazing thing about this metric is that its question isn’t about an emotion, but about an intention, which is easier to answer. It cuts down to the question of whether the product is good enough to refer it and put your own reputation on the line.

In this single metric you are able to cover the complete customer experience: physical(arrive on time etc) and emotional(customer experience)

An additional benefit of NPS is that it directs your customers attention towards referring.

nps

  • Customer Effort Score (CES)

This method is focused in the service perspective, customers aren’t asked for their satisfaction, but for the effort it took them to have their issue solved.

This idea for a customer satisfaction metric was introduced in the HBR article Stop Trying to Delight Your Customers.

Using NPS for measure satisfaction

  • Measure customer NPS

Is recommended breaking it into groups and asking to a part of your customers each month. You can then analyze the responses quarterly. Usually monthly is too noisy to be worth looking at, satisfaction changes over long time periods so obsessing over short term numbers can be frustrating.  Don’t forget to analyze the text responses. I think that it can be the most valuable part of NPS.

  • Measure employee NPS

With NPS you can regularly ask employees “How likely are you to recommend working here to a friend?”. It provides a lot of learning from the overall score, scores by position, scores by department, and especially the text comments. Usually the responses correlated with employees’ performance ratings. Don’t forget that it’s really important maintain confidentiality about the response.

  • Measure transactional NPS

Based on the interaction with the company teams as support, sales or training there is a chance to ask customers about their satisfaction with a specific service of your company. This also can be use to measure the quality of content like ebooks and webinars.

NPS Example in Google Docs

Here you can create a survey using the Customer Satisfaction Score template.

You also can use loyalnow to create a customer satisfaction survey. Loyalnow is a free NPS platform system.

Why customer satisfaction is important

Why customer satisfaction is important

Customer satisfaction is an extremely important index, its used to measure how much the products and services have met it’s customers expectations.

In times that the customer acquisition cost is extremely high, small and medium companies have focused its energies to promote better experiences to the customers, the goal of this kind of action is directly realized in the customer satisfaction index.

Customer satisfaction concept with businessman hand drawing smil

Five reasons why you should worry about customers satisfaction

  1. It’s one of the greatest indicators for predictability for loss of customers (churn)
  2. Satisfied customers are prone to additional purchases
  3. Reduces negativism  via word of mouth
  4. It’s much cheaper to retain customers than to acquire
  5. It’s a propellant of motivation for those involved in the delivery of the product or service

It’s one of the greatest indicators for predictability for loss of customers

Measure customers satisfaction allows you to adapt your processes and even your product or service to correct generalized points of dissatisfaction and to promote an even better experience for your customers.

This kind of metric allow you to take segmented actions to the customers that are unsatisfied, prone to give up of your product or service. This causes that less energy is spent on this problem and more assertive is the treatment.

Do you want to know more about churn? Retention:the way to a sustainable growth

Satisfied customers are prone to additional purchases

Customer satisfaction is the best index of how willing the customer is to make a new purchase, like a new product or an upgrade in some service.

A great tool to identify who are these customers is the Net Promoter Score (NPS). Through a simple question about satisfaction in a 0-10 scale it’s possible to select who are those customers that trend to promote your product or service.

In this way, besides it get easier it becomes more effective the inclusion of a new offering.

Do you want to know more about NPS? The one number you need to grow

Reduces negativism via word of mouth

Studies demonstrate that unsatisfied customers trend to expose their negatives experiences to until 15 people. This profile is characterized as a detractor, it’s very probable that he not only stop of being your customer but also spreads to their acquaintances a negative recommendation about your brand.

The impact that a high number os detractors in your base can cause is really worrisome. One thing is to lose a customer only because he is unsatisfied. But now imagine you corrupt other 15 possible customers because of a bad recommendation done through some acquaintances.

To solve this problem the satisfaction index measurement must be a continuous practice and with low period of recurrence, allied to some effective decision making for solving the objections found during the assessment.

Do you want to know more about this impact? Word of mouth

It’s much cheaper to retain customers than to acquire

The cost for the acquisition of a new customer can be seven times higher than the cost to keep someone that already is your customer.

Generate attraction and interest for possible new customers require a lot of spending with marketing, besides of the possible spending that might exist with a sale team. Now imagine if you could spend a portion seven times lower of resources with these teams and get the same results.

There are many ‘hacks’ that you can use to increment your customer satisfaction and consequently increase the retention

  • Be close to your customer, contact him frequently and seek to understanding if your product is still corresponding to the expectations. Don’t waste the chance to surprise him positively.
  • Keep your customers up to date about things of their interest, promote events, or maintain a blog with news of their areas.
  • Offer custom experiences, people like to feel exclusives, allow a differentiated treatment for each customer.

Do you want to know more about the difference between retain and acquire customers? How much a customer worths

It’s a propellant of motivation for those involved in the delivery of the product or service

When a amazing job is done and its recognized by the customer, the individuals engaged in the construction of this experience stay exposed to a feeling of being on the way to the right destination. In high performance teams this kind of acknowledgment gives energy for the team to go ahead and to overcome itself more and more in the next challenge.

It’s important to be in the right path having the acknowledgment from the customer, it’s also important to celebrate this approval. But it’s good to remember that satisfaction is variable and sensible, therefore it’s important that at each new month is provided an experience better than the last month.

What have you done to measure the satisfaction of your customer?

The customer satisfaction has an extremely important function for any company and at any growth stage. Not only for measure customers loyalty, identifies unsatisfied customers, increment revenue and reduce churn. But also to help the entrepreneur to attract healthy and qualified customers, where the company can be sure that its product or service is will really correspond to the expectations.

NPS®, Net Promoter® & Net Promoter® Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.

How to create an effective satisfaction research

How to create an effective satisfaction research

Satisfaction is the core of any experience, whether it’s with a product or service, and satisfaction research is the best way to identify the sentiment of your clients. High satisfaction levels provide high retention and customer loyalty, besides a new purchase tendency.

High efficiency business tries to create lovely experiences with the intention to keep its customer list and try to open new markets through the Word of mouth.

If you are not convinced that this is the main metric that you should measure, here it follows some statistical results about the index:

  • In one research with 200 senior marketing managers, 71% answered that have the customer satisfaction as the main monitoring metric of the business health. Marketing metrics
  • The price is not the main reason of losing customers, but the low quality level of service provided to the customer. Accenture global customer report
  • In a moment where the competition for customers is getting bigger. the customer satisfaction has become the key for a sustainable growth. The future of business: The Essentials

We already talked her about the importance to measure the customers satisfaction, now it’s time to show how to make an effective satisfaction search.

A simple and very effective way to find out the customers loyalty level is to send a questionnaire model Net Promoter Score (NPS). The NPS system has as a goal not only measure the customer satisfaction, but also to know if the customer likes your company so much that would recommend it to his friends.

The NPS works starting from the following question:

What is the probability of you recommend the [product/service] to a friend or colleague?

So the customer must rank his answer with a 0-10 grade. After the rating it’s still possible to provide an open field for that the customer can detail the reasons of why he gave this answer. This information can be used as an input for the processes improvement and the product evolution aiming the objection treatment.

The NPS system is objective, fast and easy to use

It’s not necessary be a specialist in statistics to manager the NPS online survey. The model question is based on one idea: find out if your customers like your company enough to recommend it.

The NPS segments and rate your customers

The NPS categorize your customers in three types: Promoters, detractors and Passives. This categories make the customers satisfaction rating easier and to standardize the communication of your company with each profile.

The NPS is awesome to management

Besides helping the company to compare its performance to the concurrence, the Net Promoter Score can be used by the managers to compare the services of many departments. As, for example, to know if the technical services area has a score greater than field services area.

With the NPS system, it’s much easier to use references

The NPS scoring is a metric used worldwide by companies of many sections, this facilitates very much the comparison with concurrent or new markets.

Your score becomes more significant with other score of your section, what facilitates the decision making. For example, if your NPS is 31 but the your section average is 35, you should invest energy to achieve the concurrence. In the same way, if you got 40 points but all of your concurrents have 30, you can use this information to attract new customers.

NPS®, Net Promoter® & Net Promoter® Score are registered trademarks of Satmetrix Systems, Inc., Bain & Company and Fred Reichheld.

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