Measuring Customer Satisfaction – Is it important for your brand’s success?
What are the major attributes of Customer Satisfaction Measurement? Why should an organization measure customer satisfaction? Is it important for your brand’s success and Customer Relationship enhancement? Customer satisfaction can be defined as a customer’s perception that a supplier has completely satisfied their expectations and met their needs.
Why should you measure Customer Satisfaction?
On an average, business loses between 10% and 30% of its customers each year, often even without knowing:
- Which customers they have lost?
- When they were lost?
- Why there were lost?
- How much sales and profit is the organization deficient of, because of customer decay and what has it cost the organization?
It is far more costly to win a new customer than it is to retain an existing one. The primary objective of any organization to be doing business is to make profits. It is a constant game to increase profitability and measure customer satisfaction. Acting appropriately and designing actions based on the results, will increase profitability.
If you are losing customers and NOT taking action, it will allow your customer base to decay while permitting your competition to gain market share.
Some surveys indicate that:
- Only 4% of all customers with problems complain
- On an average, an unsatisfied customer will eventually tell 9 other people about his experience
- Satisfied customers tell 5 other people about their good experience
- Cost of acquiring a new customer will be 5 to 7 times higher than retaining existing ones
- Cost of hiring and training a new employee is up to 10 times higher than retaining and empowering the existing members
The customer’s perception of the value that your company provides are based on the following attributes:
- Future behaviour