Measuring customer satisfaction is crucial for any business who wishes to retain loyal customers that equate to higher customer lifetime value.
Of course, a customer’s lifetime value cannot be measured solely by the number of their future purchases for there is the intangible measurement of “brand ambassadorship” too, which can provide a limitless stream of future lifetime loyal customers.
A happy customer is a loyal customer, and a loyal customer becomes a brand ambassador – a veritable one-person sales team that provides free third-party reviews, testimonials, and referrals for life as long as they remain satisfied with the brand, its products, and its service.
Add to this the fact that it is always more costly to acquire a new customer than retain an old one and figuring out how to measure customer satisfaction becomes even more vital for a business.
Measuring customer satisfaction can save on acquisition costs not only in the future but also in the here and now by reducing the need to continue to “fill up” on new customers to replenish a constant “exodus” of unsatisfied ones.
Metrics Tell The Truth About Customer Satisfaction
While a business may already recognize these facts, the problem lies in measuring customer satisfaction.
Even a customer who has purchased a product from a company and has never lodged a complaint against the product or service may not necessarily be a satisfied customer.
Even if they never say one bad word to anyone about the brand, its products, or its services, if they are not happy with how they have been treated or not treated, for that matter, it is highly unlikely that that particular customer will ever purchase again or suggest that brand among their sphere of influence.
While measuring customer satisfaction is not as simple as measuring sales and revenue, there are metrics that can help a business uncover even those “silent” customers who may not complain but are not happy with a service or purchased product.
Knowing which data (i.e., metrics) to use in the case of customer satisfaction is the only way to uncover the “truth” about how customers really feel.