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3 Indicators for Customer Satisfaction

3 Indicators for Customer Satisfaction

Discover customer satisfaction indicators that will revolutionize the way you see your consumers and bring results for your company!
It is very difficult to maintain the sustainability of a company without a good set of customer satisfaction indicators. The customer is the stakeholder that brings resources to the organization, so without customers, there is no revenue, and without revenue, we cannot sustain operations. Thus, keeping customer satisfaction high is a primary necessity.

Dissatisfied customers not only stop buying but can also tarnish the company’s image, causing other potential buyers to refrain from trying the products and services we offer. This creates a true snowball effect, causing sales to drop and even affecting other customers through complaints and dissatisfaction.

Having good customer satisfaction indicators allows us to understand the problems or difficulties that customers face, as well as how much our products and services help them overcome difficulties. In this way, it is possible to act in various ways, ranging from correcting specific problems to even reformulating deliveries.

However, we know that it is very difficult to choose from thousands of possible metrics and focus on indicators that really help us understand the customer’s pains. Therefore, in today’s content, we decided to talk about the 3 indicators for customer satisfaction. Through them, you will know what to measure and how to act to ensure your customers are happy and loyal to your company! Shall we get to know them?

 

1 – NPS (Net Promoter Score)


Created by Fred Heichheld in 2003, the famous Net Promoter Score (NPS) is a metric that helps measure customer satisfaction. Besides being very useful, its assessment is very simple, as it is based on a single question to the customer:

“On a scale of 0 to 10, how likely are you to recommend our company to a friend or partner company?”
This scale (0 to 10) quantifies the customer’s view of our company and allows for a deeper analysis of satisfaction. The method also presents an analysis of customer responses, as follows:


  • From 0 to 6: detractors – customers who give a score within this range are those who do not like our offerings and will possibly speak poorly of our companies. They are dissatisfied customers who will most likely not return to consume our products and services;

  • 7 or 8: passive – customers in this score range are not dissatisfied but do not show any enthusiasm towards our companies. In simple terms: “They found the service okay.” They probably won’t speak poorly of the company, but they won’t recommend it either, and they are likely to switch to another provider for any reason;

  • 9 or 10: promoters – this is the goal of any company, to have only promoters. As the name suggests, these are customers who like the service or product so much that they ‘promote’ the company, spread the word, and suggest it to others. This customer not only returns to buy but also does not switch companies for anything, and is a source of “word-of-mouth marketing,” recommending the company whenever possible.

From the responses of various customers, it is possible to calculate the company’s overall NPS. To do this, subtract the percentage of detractors from the percentage of promoters, arriving at the company’s NPS percentage. Here is the formula:
NPS Indicator
This percentage is an important indicator for understanding how customers view the company and how its reputation can be perceived in the market.

NPS not only works generally, providing a basis for analysis, but it can also provide important individual insights if customer interviews are in-depth. It is worth understanding this indicator better and applying it in your company!

 

2 – Customer Complaints


Another important indicator for customer satisfaction is the number of complaints. This indicator seems more obvious, as the more complaints, the worse the customer’s view of the company. However, it is worth delving into it a bit more, trying to understand this aspect in two ways:


  • Quantity of complaints: the raw number of customer complaints;

  • Severity of complaints: a qualitative number, taking into consideration the intensity of the impact on the customer (severity).

Both cases are demonstrations of dissatisfaction; however, analyzing them from these two perspectives can provide more precision.

Even a company with few complaints (quantitative) can run significant risks if these complaints are very severe (qualitative). Thus, it is necessary to act both to reduce the overall number of complaints and to ensure that the negative impacts on the customer are avoided as much as possible.

 

3 – Rework Due to Customer Requests


The last of the customer satisfaction indicators I want to comment on here is the percentage of rework. Often, to meet a customer’s request, the work needs to be redone. This may not generate a complaint and still may not directly impact NPS, as the customer may be satisfied after the corrections.

However, every time we do not meet the customer’s needs “the first time,” something needs to be reworked. This not only generates more internal costs but can also create rework for the customer as well. Thus, even if they are satisfied, it is possible to understand that there is something in the process that can be improved. Therefore, this metric can be a significant differentiator for your customer satisfaction indicators.

 

Customer Satisfaction Indicators and Organizational Context


It is worth mentioning that, as with almost everything, the context of your company must be taken into account. The proposed indicators are useful for the vast majority of companies, but it may be necessary to go further and analyze other metrics in conjunction.

A good set of customer satisfaction indicators is one that shows the overall panorama of the company and provides specific points that need attention or can be improved. Therefore, evaluate your context, understand your products and services well, and from there, define the best ways to assess your customers’ satisfaction!
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QMS Certification

QMS is an accredited third party certification body, it is currently present in 33 countries and focuses on the certification of management systems. QMS America is managed by the US office and has consistently grown in market recognition by technical level, customer satisfaction and competitive pricing.

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