Customer Satisfaction & CSAT, CES, NPS Concepts

“If you can’t measure, you can’t manage.” – Peter Drucker 

At the beginning of the 20th century, customers’ demand for different and varied products increased in the market. Except for the USA, countries like China started to have a say in the international arena after the Second World War and strengthened their economies. Thus, customers have the chance to demand products according to their own preferences. Market power has shifted from powerful companies to consumers. Because without the consumer, that wheel would not turn. Customer satisfaction has reached a very important level. Companies attach importance to measuring this level of satisfaction with various tools such as CSAT, CES, NPS.

What are the CSAT, CES and NPS concepts?

Measurement of Customer Satisfaction and the Importance of CSAT, CES, NPS Concepts

Customer Satisfaction Score (CSAT)

CSAT is a survey that measures customer satisfaction with products and services. The customer is expected to respond in intervals such as “I am satisfied”, “I am very satisfied”. This survey can also be with a scoring system. In order to calculate the survey result, the number of participants should be divided by the number of all participants and the result should be multiplied by 100. CSAT measures satisfaction.

There are also small details. For example, if the number of questions increases, the probability of interest and response decreases. It may not be directly related to the business. For example, it could be about the product. So it can not be very helpful in determining the policies of the business. Asks questions about key points in the customer journey. Such as purchase, customer service service. It is important to improve the customer experience and prevent problems that may occur.

Customer Effort Score (CES)

CES emerged to reduce the lack of traditional methods of measuring customer experience. It doesn’t just reveal a number. It also examines the reasons behind the feedback. We can say that it examines the big picture. It focuses on experience rather than satisfaction. It looks at the effectiveness of both the digital tools and the tools such as customer service of the relevant company. Generates results with arithmetic mean. It is widely used and important in testing digital tools.

It has a numerical scale and is averaged. As a result, it measures the ease of customers’ experience. According to Harvard Business Review studies, customers who gave high scores had high brand loyalty. The feedback received gives the customer an effort score. The aim is to facilitate interaction and meet the customer’s demand.

Net Promoter Score (NPS)

Customer loyalty is very important for a company. It has a direct impact on its growth and commercial activities. NPS is a modern and effective way of collecting customer feedback. Frederique Richert found this index in 2003. The NPS index asks customers whether you would recommend this company to your environment, and the feedback is analyzed by the company. Thus, customers are classified. The NPS index is between -100 and 100. The percentage of promoters is subtracted from the percentage of detractors. A score of 0-30 is considered good, and above 70 is considered very good.

A company that scores below zero is in bad shape. Like other techniques, this technique is used to understand and solve problems. Customers are asked to give up to 10 points. Those who give low scores are contacted and the problem is tried to be solved. Positive feedback is crucial to business growth. It is aimed to improve the perception and image of the brand.

Why is customer satisfaction important and should it be measured?

The process of buying a product or acquiring a service arises out of necessity. Companies need to manage this process well. In addition, they should establish solid customer relations so that they can fully and completely respond to these demands and needs. “Customer experience” should be analyzed well. If the customer is contacted and made to feel good, he will tell someone else about the company. Thus, the company’s network will grow day by day.

Therefore, this experience should be built on a good system to manage the competition. Customer satisfaction is seen as an important performance indicator within the business. In fact, trying to increase the number of new customers may be more costly than satisfying existing customers. Because the existing one is more likely to shop regularly and more. In addition, they can give advice to their surroundings. Based on these, we can say that customers with increased loyalty can be the strongest advertisers of companies.

Conclusion

Customer satisfaction measurement dates back to ancient times. For example, on a plaque written in 1750 BC, the customer said that he was not satisfied with the product and the delivery was delayed. If we come to the present 3000 years from this complaint, in 1852 M. Field said, “The customer is always right.” he used the phrase.

As the number of trade, companies, and people increase, customer satisfaction is measured in a competitive environment with various techniques. Customer experience management is an integral part of companies. Analyzes are made in areas such as product, delivery, price and service. “Accuracy, Availability, Partnership, Advice”  are very important concepts. With the CSAT, CES, and NPS, mentioned above, these analyzes are carried out in a modern and effective way.

To increase customer satisfaction in call centers, you can take a look at our blog post about The Benefits of Recording Calls to Improve Customer Satisfaction.

Resources:

  1. https://cio-wiki.org/wiki/Customer_Satisfaction

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