What is Customer Satisfaction? | Definition and How to Measure Customer Satisfaction — Transcript

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1. 0:02customer satisfaction can be a factor
2. 0:04that makes or breaks your business
3. 0:06after all a business with unhappy
4. 0:08customers is less likely to succeed in
5. 0:10the long run
6. 0:11but you might be wondering what customer
7. 0:13satisfaction is why is it so important
8. 0:15and how to measure it
9. 0:17we are moment and today we'll break it
10. 0:19all down
11. 0:20first what is customer satisfaction
12. 0:24in the most simple definition customer
13. 0:26satisfaction is a metric that refers to
14. 0:28the degree
15. 0:29to which the customer expectations have
16. 0:31been met meet your customer expectations
17. 0:33and your customers will be satisfied
18. 0:35exceed their expectations and they'll be
19. 0:37delighted you could also miss the mark
20. 0:39when meeting customer expectations
21. 0:41resulting in low customer satisfaction
22. 0:43scores and displeased customers
23. 0:46both scenarios can end up having a
24. 0:48significant impact on your business
25. 0:50even financially why customer
26. 0:52satisfaction is important
27. 0:55the impacts of customer satisfaction on
28. 0:56your business can be both significant
29. 0:58and lasting especially when you consider
30. 1:01the effects that customer satisfaction
31. 1:02scores
32. 1:03have on customer retention and loyalty
33. 1:06satisfied customers are more likely to
34. 1:08stay as one of your customers and are
35. 1:09more likely
36. 1:10to advocate for your business they are
37. 1:13also more likely to post positive
38. 1:14reviews and testimonials of your
39. 1:16business
40. 1:16online and on social media customer
41. 1:19satisfaction can end up affecting your
42. 1:21bottom line
43. 1:22with higher customer retention also
44. 1:24comes higher customer revenue as is
45. 1:26generally cheaper
46. 1:27to retain a customer than to acquire new
47. 1:29ones
48. 1:30and with more positive reviews and loud
49. 1:32advocates for your brands
50. 1:33your acquisition costs can also be
51. 1:35reduced on the other hand
52. 1:37low customer satisfaction can result in
53. 1:39low customer retention
54. 1:41negative reviews and a negative brand
55. 1:43image how to measure customer
56. 1:45satisfaction
57. 1:47customer satisfaction can be measured in
58. 1:48many different ways
59. 1:50the most common being the customer
60. 1:51satisfaction score or the csat score
61. 1:55csat is determined by surveying your
62. 1:57customers and asking them to rate their
63. 1:59experience
64. 2:00with your business in a binary from one
65. 2:02to five
66. 2:03or a non-binary scale highly
67. 2:05dissatisfied to highly satisfied
68. 2:07after collecting all the responses the
69. 2:10average scores are calculated in order
70. 2:12to find your overall csat score
71. 2:15another popular metric used to get a
72. 2:17sense of your customer satisfaction
73. 2:19is a net promoter score or nps
74. 2:22mps measures how likely your customers
75. 2:24are to recommend your business to others
76. 2:27based on their experience this score is
77. 2:29calculated and asking customers
78. 2:31how likely they are to recommend your
79. 2:33business to a friend or colleague in a
80. 2:35scale of one to ten
81. 2:36customers are then categorized based on
82. 2:38their answers promoters answer between
83. 2:41nine to ten
84. 2:42and passives answer between seven to
85. 2:44eight
86. 2:45detractors answer six and lower you'll
87. 2:48count the number of customers in each
88. 2:50category and run this formula
89. 2:53a high nps indicates a large number of
90. 2:55customers who will gladly recommend your
91. 2:58business to others
92. 2:59a low score might indicate issues and
93. 3:01customer satisfaction across your
94. 3:03organization
95. 3:04how to increase your customer
96. 3:05satisfaction increasing customer
97. 3:08satisfaction on your company should be a
98. 3:09high priority for your business
99. 3:11at this point you might be wondering how
100. 3:13to do so
101. 3:15first we recommend measuring your
102. 3:16current customer service scores
103. 3:18to get a grasp of where your customers
104. 3:20currently stand
105. 3:22then we recommend learning about the
106. 3:24customer journey in order to get a
107. 3:25clearer view of all the touch points
108. 3:27between your customers
109. 3:28and your business check out our video on
110. 3:31the customer journey and how to map it
111. 3:33by clicking on the top right corner
112. 3:35lastly we recommend you checking out our
113. 3:37guide on customer service standards
114. 3:39to implement on your business which will
115. 3:40help you guide your path to success and
116. 3:42better customer satisfaction
117. 3:44the link is in the description how will
118. 3:46you improve your customer satisfaction
119. 3:48thanks for watching our video and make
120. 3:50sure to subscribe to our youtube channel
121. 3:51for more videos on all things customer
122. 3:58service
123. 4:04you