To keep your business alive, keeping your customers satisfied is very important, but did you know that keeping track of customer satisfaction can also help your business grow and achieve higher revenue? There are several customer satisfaction metrics that can predict your business’ revenue and growth in general. Pay attention to these 3 useful metrics and your business will be on the right path to success.
1. Net Promoter Score (NPS)
Net Promoter Score is a metric to measure customer loyalty, satisfaction, and enthusiasm for your business. To gather NPS, you can simply ask your customers this question in a survey:
“On a scale from 0 to 10, how likely are you to recommend this product/ our company to your family and friends?”
According to Hotjar, NPS is one way to predict business growth. This is because NPS reveals whether your business has a healthy relationship with customers or not. The healthier your business’ relationship with the customers is, the more likely they are to recommend your brand, which also means the faster and easier it is for your business to grow. In addition to predicting business growth, NPS can predict revenue growth as well. A high NPS score shows a high possibility for your customers to bring more customers in you, which means higher revenue for your business.
2. Customer Satisfaction Score (CSAT)
Customer Satisfaction Score is a metric to identify whether your customers have a pleasant experience while interacting with your business. To gather CSAT, you can ask your customers to fill in a survey about their overall experience. Here is one example of questions you can ask your customers:
“On a scale from 1 to 5, how would you rate your experience with our company?”
As CSAT is one of the main indicators of customer retention, this metric is able to predict revenue growth and future business performance. When your business lives up to customers’ expectations, your customers will be more likely to return to your business, which will increase both performance and revenue. Furthermore, CSAT can reveal the best strategies for your business to take for further development.
3. Customer Effort Score (CES)
Customer Effort Score (CES) is a metric that assesses how much effort customers make when interacting with your business. These interactions can range from how much effort your customers need to put in to use your product or service to how much effort it takes to find solutions to particular issues they are facing. Here is one example of questions you can ask your customers in a survey to acquire CES:
“How easy was it to solve your problem today?”
Like CSAT, CES also correlates with customer retention. As has been implied before, customer retention plays an important role in revenue growth. According to a study by Bain and Company, a 5% increase in customer retention can increase profits by (up to) 95%. Seeing that CES is one of determining factors of customer retention, this metric can help predict your business’ revenue growth. CES can also help your business identify rooms for improvement, which encourages business growth in general.
In order to track those 3 metrics, you need feedback from customers, which can be acquired by asking them to fill in surveys. If you are looking for a customer feedback platform, you should consider implementing SMARTSURVEYS™.
SMARTSURVEYS™ is a customer feedback platform from Business Smart Solutions (BSS) that will help your business gather customers’ opinions, concerns, needs, interests, and preferences accurately in real-time. This customer feedback platform offers the flexibility of methods and applications, as well as various formats of questions, which you can adjust to your company’s needs.
To learn more about SMARTSURVEYS™, visit our website or reach us at info@bss.com.au.
