How to Measure Customer Satisfaction

Posted by Tom Smith on Fri, Jul, 11, 2014 @ 09:07 AM


customer satisfaction








Guest post: Harvey Hammond

Customer satisfaction is difficult to measure due to several reasons. Counting on customer satisfaction owing to their feedback is not the case because most people prefer keeping quiet when satisfied.

Some people see no need of contacting the service provider while others seek to pass their complaints.

Requirements for customer satisfaction are not only unique but difficult to quantify. Setting standards and improving employee relationships with customers is central strategy of measuring customer satisfaction and ensuring that success is determined.


Ways of measuring customer satisfaction include:


Survey customers

Surveying customers is the only probable way of getting customer feedback unless they contact you.

Most people are busy and have no time to pass redress.

You can provide survey through several ways such as emails and use of phone calls.

To get credible feedback you need to allow customers to answer questions on weighted scale.

You can conduct repeated surveys, over time, to measure changing comments from customers.


Understand expectations

Understanding what customers expect from you will provide ground to satisfy their expectations by giving them enjoyable service.

Making an effort to discover what customers expect from you in terms of service and products is the way to satisfying their needs.


Find out where you are failing

On situations where you are not fulfilling customer requirements, it is credible to find out where you are failing.

Incidences where products are less than advertised should not arise.

Find out if employees are making promises that cannot be met. 

Take strides and attend seminars that will equip you with better managerial skills.

Know the chain of communication so as to know where communication faults are and foster amendments.


Pinpoint specifics

Whether a customer is satisfied or not, you need to collect information to help you assess the situation.

Collect information about what customers purchased, what they liked and they did not like, their actual purchase expectation and their suggestions for improvement.


Assess the competition

Have the initiative to know why customers consider other brands above yours.

Through the survey, invite customers to come and compare and contrast your services and products and make judgment on what you are not offering.


Try to measure the emotional aspect

Customer experiences after buying a given product are attributed to quality.

Feedback from customers in relation to quality, reliability and extent satisfaction should be matched.

Comments customers make are a measure of their satisfaction.

Customers showing dissatisfaction prompts change of strategy.


Loyalty measurement

Customer loyalty is the likelihood of repurchasing products or services.

Customer satisfaction is a major predictor for repurchasing and it is influenced by explicit performance of the product, value and quality.

Loyalty is basically measured when a customer recommends to a friend, family member about given product.

Overall satisfaction, repurchasing and likelihood of recommending to a friend are indicators of customer satisfaction.


A series of attribute satisfaction measurement

This strategy takes into account the affective and cognitive pattern.

Affective behavior is intrigued to liking and disliking owing the benefits the product is attached with.

Customer satisfaction is influenced by perceived quality the product is attached with and it is regulated by expectations of the product or service.

Customer attitude towards a product are as a result of product information through advertisement and any experience with the product whether perceived or real.

Cognition is the judgment on whether the product is useful or not useful.

Judgment is always intended use of application and use of occasions for which the product is purchased.  


Intentions to repurchase

Future hypothetical behavior that indicates repurchasing the product is a measure of satisfaction.

Satisfaction can influence other post purchasing trend through use of the word of mouth or social media platform.



Monitoring can be directed at phone, email and chat communications.

Monitoring includes automated phone interactions designed by companies to help give real world glimpse.

Feedback cards

Dishing out cards will help gauge customer comments.


Author Bio :
I am Harvey Hammond and a freelance writer. I have worked for customers from all over the world which made me to be expertise in the field of writing.  I have been working with all chapters dissertation writing service for the past 7 years as a writer. My past experience as a writer gave me plenty of opportunities to deal with many of the essays, articles and various assignments from the clients to get done which in fact developed my knowledge. Presently, I have completed an article on the title of “How to Measure Customer Satisfaction”.


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Tags: customer experience, dialog, customer satisfaction, customer service, lifetime customer value

7 Keys to Organizational Empathy to Enhance Customer Experience (#cx)

Posted by Tom Smith on Fri, May, 09, 2014 @ 10:05 AM

organizational empathy improves the customer experience








Great presentation by Bruce Temkin during the VoC (voice of the customer) Fusion Conference (#vocfusion).


Bruce shared his path for organizations to achieve organizational empathy.


Organizational empathy is a commitment by companies that they will work towards developing a deeper understanding of their customers’ needs, and they will use this knowledge to serve those needs better.


Bruce has even started an amplify empathy movement (#amplifyempathy) to encourage individuals to help build stronger empathy for their customers within their organizations.


People are wired to help other people -- be it their colleagues, prospects or customers.


Empathy is the ability to imagine ourselves in another's place and understand their feelings, desires and needs.


People behave differently whether they are an employee or a customer.


Engaged employees have: high interest, high knowledge, silos of focused messaging, politics and egos.


Customers have needs, desires, interest in your product or service and some level of knowledge.


Silos are not going away because they're an effective way to organize and manage knowledge.


Customer experiences happen between the silos. How can we enhance communication between the silos to enhance the customer experience?


Bruce proposes seven keys to unlock organizational empathy:


  1. Talk about customer emotions. How do they feel about their experience? Angry, adoring or something in between.

  2. Look at the journey, not just interactions.  Ask what happened right before and what they will do right after to understand the context of the request and to determine where you can personalize the experience and add value. USAA probes when someone calls to change their address. If the soldier is being deployed, it might save them money to put their automobile insurance on hold while they are away.

  3. Talk about customers as people. Customers are not statistics. Know that you can't be all things to all people but you can treat people as individuals and help identify the correct solution for their need.

  4. Interact regularly with target customers. Employees that are highly or moderately engaged are more empathetic. Employees want to be part of something bigger than their day-to-day job. Do your employees know your company's mission? Is it bigger than just generating more revenue?

  5. Provide a strong sense of purpose. This sense of purpose provides four intrinsic rewards: 1) meanfulness; 2) choice - don't script everything, empower people to make decisions on their own; 3) competence - build skills and training; 4) progress - growth and learning.

  6. Empower random acts of kindness.  Ritz empowers employees to spend up to $2,000 on a guest to enhance their experience. Disney encourages each of their employees to spend five minutes creating a special moment for a guest.

  7. Personal happiness enhances empathy. Find reasons to be thankful. Hire happy people and keep them happy. Find ways for you to be happy.


More organizational empathy will result in more happy customers.


More happy customers will buy more, more frequently and provide greater lifetime value for the firm.


Empower Employees to Get Insights Download the Free e-book "How To Get Insights From Analytics" to Accelerate Sales 

Tags: customer experience, customer satisfaction, employee engagement, employee empowerment, lifetime customer value, empathy

Include Cost to Serve in Your Price to Accelerate Profitability

Posted by Tom Smith on Tue, Jan, 07, 2014 @ 06:01 AM

service costs hurt profitability











Great presentation by Gary Cokins, founder of Analytics Based Performance Management.

Gary suggests that the Pareto principle (the 80:20 rule) applies to cost to serve the same as it applies to revenue and profitability and that by eliminating the 20% of customers that account for 80% of customer service expense you can dramatically increase your firm's profitability.

The key is to know the lifetime value of your customer and the cost to serve them.

Following are 11 ways to increase profitability:

  1. Be aware of the service cost for each customer and reduce it. What can you do to making buying from you more simple? This will save the customer time and save you money. Customers crave simplicity.
  2. Establish a surcharge for, or reprice, expensive cost-to-serve activities. If it costs more to give the customer what they want, you need to educate the customer of this and charge them for the extra expense you are incurring.
  3. Reduce services. Customers today are very adept at searching your website, and others, for answers to their questions. Provide the information they're looking for with a content-based marketing effort. Answer any question you've ever received from a customer in a blog post. It will help your prospects and customers as well as your search engine optimization efforts.
  4. Introduce new product and service lines based on your customers' needs and wants. Empower your employees to help identify what your customers' needs and wants are.
  5. Raise prices. The 2012 American Express Global Customer Service Barometer found that customers would spend 13% more with companies that provide great service.
  6. Abandon unprofitable or less lucrative products, services or customers. Don't do this before you've tried charging more.
  7. Improve processes to drive up service line or product profitability. Start by having an accurate customer relationship management database that every customer-facing employee has access to.
  8. Offer the customer profit-positive service level options at varying prices. Zappos is known for providing a consistently outstanding customer experience and next day delivery -- not everyday low prices.
  9. Increase activities that a customer shows a preference for. Fine dining establishments have been charging premium prices for "chef's tables" for years.
  10. Up-sell and cross-sell the customer's purchase mix toward richer, higher-margin products and service lines. Leverage data to know what to offer your customer next to fulfill their needs.
  11. Discount to gain more volume, or greater lifetime value, with low "cost-to-serve" customers. I receive monthly shipments of dog food and cereal at a 10% discount. I save time and money and the companies selling me their products now have an annuity stream.
How are you using your knowledge of the lifetime value of the customer and the cost of providing service to increase profitability?
Need More Insights From Your Analytics? Download the Free e-book "How To Get Insights From Analytics" to Accelerate Sales

Tags: insights from analytics accelerate sales, pricing as a strategic market advantage, consumer insights, customer relationship management, customer bonding programs, lifetime customer value

Differentiate Your Brand With Outstanding Customer Service

Posted by Tom Smith on Thu, Jan, 02, 2014 @ 06:01 AM

Outstanding customer experience










I find Tony Hsieh's, Delivering Happiness, to be tremendously inspiring.

There are so many great stories and suggestions in the book, I want to share a few of them with you.

By all means, buy the book. It's a great read for anyone who owns, or wants to impact, a business.

The number one driver of Zappos' growth has been repeat customers and word of mouth.

The company's philosophy has been to take the money it would have spent on paid advertising and spend it on customer service and the customer experience instead, letting customers do the marketing for them via word-of-mouth -- the most cost efficient form of advertising there is.

Given that consumers trust what their friends, families and people thany don't know online three times more than what a company says about itself. this is a brilliant strategy.

So how does Zappos define great customer service?

The first thing customers see when they visit the web site is that Zappos offers free shipping both ways to make the transaction as easy as possible and take away any concerns about shoes or clothes not fitting.

Many customers will order five different pairs of shoes, try them on with five different outfits in the comfort and convenience of their own home, and then send back the one's that don't fit, or they don't like -- free of charge. The additional shipping costs are expensive but Zappos views this as a marketing expense.

Zappos has set a very high bar for providing outstanding customer service whether you're a brick and mortar, or online, retailer.

The company offers a 365-day return policy for customers who have trouble committing or making up their minds.

Unlike its owner, Amazon, Zappos also prominently displays its contact information.

The 800-number is on every page of the web site and the call center is staffed 24/7.

Rather than viewing their call center as an expense that must be managed, Zappos views their call center as an untapped opportunity to build relationships and have conversations with their customers.

This results in greater word-of-mouth marketing as well as greater opportunity to increase the lifetime value of the customer.

It also creates and emotional connection between the customer and the brand.

Zappos believes the lifetime value of a customer can be increased if they can create more and more positive emotional associations with their brand through every interaction a person has with them.

Given the emotional link between consumers and brands, products and services, this is absolutely true.

Rather than trying to generate "buzz," Zappos focuses on building trust.

They do this by underpromising and over delivering. Zappos will provide an upgrade to overnight shipping while the customer thinks they're getting the package delivered by ground.

The combination of a 24/7 warehouse, surprise upgrades to overnight shipping, having the warehouse located 15 minutes from the UPS Worldport hub means customers can order as late as midnight EST and receive the order on their doorstep eight hours later.

This creates a "Wow" experience which the customer remembers for a long time and tells her or his friends and family about.

What can your business do to provide a "wow" experience for your customers?

How about build trust?

Want to Accelerate Sales? Download the Free e-book  "Customer Bonding Programs:  How to Get, and Keep,Customers for Life"

Tags: outstanding customer experience, trust, connecting emotionally with customers, lifetime customer value

Know Lifetime Customer Value to Inform Your Marketing

Posted by Tom Smith on Fri, Nov, 08, 2013 @ 06:11 AM

lifetime customer value







Ferrellgas offers service you can count on?  Not so much!

I received two pieces of mail from Ferrellgas in the last two weeks. They supplied propane to my in-laws for 40(?) years.

What was their lifetime customer value to Ferrellgas?  Based on the bills, $30,000 to $40,000. I seriously doubt Ferrellgas ever knew what my in-laws lifetime value was to them.  If they did, they sure dind't care.

My in-laws have both passed away and we are selling their home. When I last spoke to Ferrellgas, we needed to have the tank filled so we'd have heat while the inside of the house was being painted, we were told it would be a week and there would be a $100 emergency delivery fee.

We explained the situation but to no avail. As such, we went with a propane provider that was less expensive, would deliver the same day and didn't charge us an emergency delivery fee.

I received a $16.67 bill from Ferrellgas last week with no explanation. This week I received a postcard asking if we were ready for a fill and offering us a special gallon rate if we refilled the tank by a certain date.

Apparently Ferrellgas failed to make a note of our call in their CRM system when we needed their help and they lost our business.

According to the card, Ferrell gas has the "guaranteed lowest price for tank owners" and we can "earn up to $75 for new customer referrals."

Great ideas guys, but not after you've already flushed a 40-year relationship down the toilet with a less than helpful attitude.

Granted, I didn't offer Ferrellgas significant lifetime customer value since we're trying to sell my in-law's house. Nonetheless, you would think a 40-year pre-existing relationship would have generated sufficient revenue to justify some special consideration.

Even if you're only going to have one or two transactions with a customer, treat them as if they'll be customers for life. No telling who they might refer if you do.

No telling who they may dissuade from using your service if you don't. Besides, it's a good habit for you and your employees to have -- especially if you don't have a CRM system to track your relationships and revenue.

Does your company measure lifetime customer value?

Want to Accelerate Sales? Download the Free e-book  "Customer Bonding Programs:  How to Get, and Keep,Customers for Life"

Tags: customers for life, customer retention, referrals, lifetime customer value