Customer satisfaction

Measuring customer satisfaction

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Monday, 7 March 2016 - Last Updated on April 30, 2016
Customer satisfaction
Customer satisfaction

Customer satisfaction

Customer satisfaction is a term widely used in marketing to refer to the degree to which customers are happy with the products and services provided by a business.

Customer satisfaction is an important factor in the success of a business especially when there is strong competition. It is a leading indicator of consumer repeat purchase intentions and customer loyalty.

By understanding your customers, you can offer them better products and/or services. Satisfied customers can give a brand/company an edge over the others.

Effectively measuring customer satisfaction can help your business reduce the number of unsatisfied customers and build stronger relationships.

1. Measure overall satisfaction

Determine if your product and/or service live up to the expectation of your customers. Overall satisfaction may be measured using a direct method such as a survey or questionnaire. Assess your customer’s experience with your product and/or service by getting direct response based on perceived needs and expectations.

Survey respondents may be requested to agree or disagree with statements using a five-point scale. This type of metric allows the organization to get direct customer feedback.

Examples of rate factors based on a five-point scale:

Example (a) 1- strongly agree, 2- agree, 3 – neutral, 4 – disagree, 5 – strongly agree

Example (b) 5 – excellent, 4 – very good, 3 – good, 2 – fair, 1 – poor

Lily, owner of a small cupcake kiosk in the mall offers 25 kinds of cupcakes. Some of her loyal customers have requested for new cupcake flavors. Lily decided to experiment on new and exciting flavors to recapture the interest of old clients and hopefully attract new ones. She conducted a taste test by giving free mini cupcakes featuring new flavors. In return, Lily requested the customers to spare a few seconds to answer a 5-point scale survey. The results helped her determine what new flavors the customer liked the best and the least.

2. Measure loyalty

Customer loyalty is considered a reflection of customer satisfaction. According to Loyalty Research Center, the following attitudes and behaviors can gauge customer loyalty.

  • Likelihood of customer recommending the company’s products and/or services to friends, relatives, colleagues, etc.
  • Likelihood of customer making repeat purchases
  • Likelihood of client buying other products or availing of other services from your company
  • Customer is convinced that your products and/or services are the best in the marketplace
  • Client is not interested of looking for alternative sources of products and/or services
  • Customer gives you suggestions to correct problems and improve your products and/or services
  • Customer ratings, reviews and testimonials can also mirror how satisfied your customers are

3. Attributional satisfaction

The way the customer attributes his/her experience to the quality of the product or service can be used as a gauge of customer satisfaction.

According to Qualtrics, perceived quality may be measured using one of the three:

1. Overall quality
2. Perceived reliability
3. Extent of customer’s needs fulfilled

Customer satisfaction is influenced by perceived quality of attributes of products and/or services. Make an effort to find out what customers expect from your products and/or services in order to satisfy their needs and make them happy.

Find out what attributes create customer satisfaction. Determine how satisfied your customers are with your products and/or services.

Sample questions:

  • How satisfied are you with the feature (state specific feature) of this product/service?
  • How important is this feature in your decision to choose the brand/company?

4. Likelihood of repeat purchase

Customer satisfaction can influence a client to purchase more products from your company or get your services again.

Satisfaction can generate higher income for your business. According to Info Quest, “a Totally Satisfied Customer contributes 2.6 times as much revenue to a company as a Somewhat Satisfied Customer.”

You can get an idea on how satisfied your customers are with your company and if they are willing to continue doing business with you by asking them directly.

Sample question: How likely are you to purchase any of our products (or avail of our services) within the next 30 days?

Possible answers: 5 – Extremely likely, 4 – Very likely, 3 – Somewhat likely, 2 – Not so likely, 1 – Not at all likely

This kind of question can help the company determine the likelihood of a customer coming back to your store to make another purchase or avail of your services again.

5. Likelihood to recommend products and/or services to others

Customer satisfaction also has the power to affect other post-purchase actions, such as telling other people (family, friends, colleagues, etc.) about their positive or negative experience. They can express their satisfaction or dissatisfaction through word of mouth or by sharing it on social media networks.

Strive to get honest results

Use the feedback that you collect as an opportunity to improve your products and/or services. Be careful of attaching big rewards or incentives to your surveys to avoid pressuring customers to give you high ratings and positive remarks. Data gathered from a biased process may not be useful to the company.

Resolve poor customer satisfaction

In a highly competitive marketplace, customer satisfaction can differentiate your business from others. There is high probability that an unhappy customer will not purchase products and/or services from your company again. Your business can lose customers to competitors because of poor customer satisfaction.

Companies invest money to acquire customers and maintain them. It is only right that you exert effort to keep them interested and satisfied.

When you find out that your business is not meeting customer requirements, the best thing to do is determine where you are coming short. Do not make the mistake of ignoring customer feedback.

Determine what aspects of your products and/or services are not fulfilling your customers and find a solution.  Address the issues to improve customer satisfaction. Follow-up with the customers to let them know that you are aware of their concerns and working to resolve the matter. You can win back dissatisfied customers when they feel that you care and doing your best to address their concerns.


Photos from Pixabay. Public domain.

Rachel Yapchiongco, also known as Rach to her friends, is a Psychology and Marketing Management graduate of De La Salle University. Rachel is a mom to a charming boy and married to an entrepreneur who has a passion for cooking. She shares parenting experiences and slices of everyday life on her personal blog called Heart of Rachel.

Ma. Rachel Yapchiongco (389 Posts)

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