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Customer Experience

Ways to Measure Customer Satisfaction

Ways to Measure Customer Satisfaction

Every day billions of unhappy customers cost businesses a lot of money. Studies also show that approximately 80% of the unsatisfied customers switch companies after one bad experience. Two crucial steps can help companies overcome this issue. The first step is to admit that there is room for improvement, and the second is to measure Customer Satisfaction to figure out where you currently stand.

According to, Bad customer service costs $338.5 billion globally each year.

Apart from the growing competition, one compelling reason behind the customer-centricity is that consumers are more vocal than ever. They share their opinions with the company; they voice their bad experiences on social media networking sites; they share stories with friends and colleagues. They no longer sit down and take it if they’ve had an unpleasant experience with a product or a service.

How to Measure Customer Satisfaction?

Measuring customer satisfaction doesn't have to be a complicated or expensive process. It is a very simple process to incorporate customer satisfaction measurement techniques into your current strategy.

Measure & Improve Customer Satisfaction with Zonka Feedback

Let us have a close look at some of the most effective Customer Satisfaction Methods, which any organization should use to achieve customer satisfaction and boost their journey in creating great CX memories:

Best Methods to Measure Customer Satisfaction

  1. Ask for Direct Customer Feedback
  2. Use the right Metrics to Measure Customer Satisfaction
  3. Analysis of Churn Rate
  4. Monitor Social Media

1. Ask for Customer Feedback

To gauge customer sentiments accurately, we need to ask them about their experience. It can be done with the help of customer feedback surveys. There is nothing more precise than the customer sharing what they feel about the company’s product or service and how they would rate the product on a given aspect.

Channels For Capturing Customer Feedback

  1. Email Surveys 
  2. Real-Time using Android Survey App, iPad Survey App and Kiosk Survey App
  3. SMS Surveys
  4. Online Surveys
  5. Website Embed & QR Code
  6. Third-Party Integration

The best way to do this is by asking short questions and collating the results into key consumer experience metrics.

2. Metrics to Measure Customer Satisfaction

CX or Customer Experience plays an important role nowadays. It has been observed that for every complaint a business receives from a customer, there are approximately 26 people who are unhappy with your company, but choose to say nothing. Such consumers, you will be most likely to lose if you don’t take proper action; that is why tracking customer satisfaction metrics is critical.

Most Commonly used Customer Satisfaction Metrics

  1. NPS (Net Promoter Score)
  2. CSAT (Customer Satisfaction Score)
  3. CES (Customer Effort Score)

NPS (Net Promoter Score)

It is the most commonly used metric, which is used to measure how likely the customer will promote the products/services/company. NPS surveys are short and can be sent during any stage of the customer lifecycle. According to NPS, customers can be divided into three categories:

  • Promoters - Customers who are enthusiastic about the products/services and are likely to recommend them to friends and families.
  • Passives - Customers who are satisfied with the products/services but would not be recommending them to friends or family members. They don’t have loyalty towards a brand and can easily be converted by competitors.
  • Detractors - Unsatisfied customers with the products/services and may damage a company’s brand image and growth via bad word of mouth

NPS scale falls between 0-10.

  • 9-10: Promoters
  • 7-8: Passives
  • 0-6: Detractors

Formula to Calculate NPS:

Net Promoter Score: % Promoters – % Detractors

Let’s try to understand this formula with the help of an example:

Suppose there are 200 respondents.

50 responses were in the range of 0 to 6(Detractors)

50 responses were in the range of 7 to 8(Passives)

100 responses were in the range of 9 to 10(Promoters)

NPS: [(100/100)*100 –(50/100)*100]= 50

The worst score is -100, and the best score is +100.

Standard NPS Question

On a scale from 1-10, how likely are you to recommend this product/service to your friends and family?

CSAT (Customer Satisfaction Score)

It is a key performance indicator for customer satisfaction. The main objective of CSAT is to determine how consumers are satisfied with the products, services, or the company. A higher percentage indicates a higher level of satisfaction.

CSAT scale falls between 0-100%.

  • Very Unsatisfied (0%)
  • Unsatisfied (20%)
  • Neutral (60%)
  • Satisfied (80%)
  • Very Satisfied (100%)

Standard CSAT Question

How would you rate your overall experience with the product/service?

Customer Effort Score (CES)

The CES is a metric that measures user experience with a product or service. It works on a 7-point scale concept. Consumers give ranking to their experience on a from “ Very Difficult” to “Very Easy.” It will help a company in determining how much effort was required to use the product or service and how likely they will continue paying for it.

CES scale consists of:

  • Strongly Disagree
  • Disagree
  • Somewhat Disagree
  • Neutral
  • Somewhat Agree
  • Agree
  • Strongly Agree

Standard CES Question

How easy it was to get the help you wanted?

3. Analysis of Churn Rate

Churn Rate stands for the percentage of consumers who stopped using your product/services over a period of time. It will help you understand what made your loyal customers stopped using your product/services, which plays a crucial part in the sustainability of any business.

It is considered as one of the strongest indicators of how many of your consumers are satisfied with your product/services.

For example, for a SaaS-based company, the following events will constitute a churn:

  • Cancellation of an ongoing subscription
  • Closure of a membership account
  • Non-renewal of a paid plan

Example: Out of 50 customers, 2 have discontinued their subscription every month. So, the churn rate would be 4%.

4. Monitoring Social Media

Evaluating customer satisfaction by monitoring social media will help any business to improve their product and services. It will help in providing exceptional customer service, which is essential in building customer loyalty.

Importance of Social Media Listening

  1. Use it for improvements and new product development
  2. Use it to find out what bothers your customers
  3. Use it to measure customer satisfaction and dissatisfaction
  4. Use it to retain your customers

Wrapping up

Any business can’t improve their customer satisfaction unless you know where you stand. Measuring customer satisfaction will help businesses bridge the gap between their customer’s needs and expectations and what the reality is. Optimizing consumer satisfaction is the best investment any company can make.

Published on Jan 03, 2020. Updated on May 14, 2020.

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