What is customer satisfaction?
Before you begin tracking how satisfied your customers are, let’s start with the basics. So what is customer satisfaction? Customer satisfaction–sometimes called CSAT in short–refers to how satisfied a customer is with a service or product.
Customers have certain expectations and customer satisfaction measures how well those expectations are met. If the service or product a customer receives does not match their expectations, their level of customer satisfaction is low. By exceeding the customer’s expectations you can ensure good customer satisfaction.
Companies are interested in customer satisfaction for a good reason: a happy customer is more likely to return and continue being a customer. In other words, great customer satisfaction translates into loyalty. In the best-case scenario, a happy customer recommends a product or service to their friends and family. This kind of customer advocacy is a good sign that you are doing things right and your customers are satisfied. On top of that, acquiring new customers is more expensive than retaining existing ones, so keeping your current customers happy is a way to reduce costs.
Although price does play a role in choices made by a customer, what many customers are looking for is a great experience. If their level of satisfaction is high, customers are willing to pay more for a product or service that others are offering for less. Not surprisingly, many companies place great value on improving customer satisfaction. You can track the level of customer satisfaction and how it develops in many ways.