Traditional marketing solutions have always taught how customer satisfaction can lead to growth in the business. But when thought about it practically, it leads to the conclusion that it is not always necessary that customer satisfaction will lead to customer loyalty also. This does not mean again that customer satisfaction should be ignored. The best way is to combine CSAT score with some other choices such as the Net Promoter Score system to increase the retention of customers in the long run.
It has been noticed that even when more than 60% of the customers are satisfied with the service, still they do not stay loyal. So, who are the loyal customers to stay?
- Customers, who remain your customers,
- Customers, who wish to buy new products,
- Customers, who recommend the brand to others.
The idea here remains to target such customers because they will remain loyal to the company.
How to Measure Customer Loyalty?
Noticing customers who will stay loyal can be really difficult and confusing. But with the help of proper measurement metrics, measuring customer loyalty can become much convenient. Net Promoter Score or NPS and Customer Satisfaction Score or CSAT can be combined together to get such customer loyalty measurement. It can let you know about the customers who will stay loyal to the brand. Manual calculations can lead to mistakes and hence the best way is to get CSAT or NPS software for better and accurate calculation.
Net Promoter Score
Net Promoter Score or NPS is the system that helps the companies in getting feedback on whether the customers will recommend the products and services to others or not. This is a common practice in most of the e-commerce firms. But currently, many other companies are also adapting it for measuring customer loyalty.
To calculate the NPS score, companies conduct NPS surveys by letting the customers recommend the brand or a product with a range of 0 to 10. There will be some of them who will rate below 5 while there will be others who will rate above 5. There will be also who will be neutral. The number of people rating 0-6 is known as detractors while the ones rating 9-10 are useful promoters. The promoter percentage has to be divided by the detractor percentage to get the NPS score.
Customer Satisfaction Score
As the name suggests, the customer satisfaction score is attained to know how much your customer is satisfied with your service. This is also collected by conducting CSAT surveys online or offline. The customers will suggest whether they are satisfied with the customer service or not with the provided ratings. The good responses are divided by the total responses and then the answer is multiplied with 100 to get the SCAT score.
Combining NPS & CSAT Score
To be at the leading edge, the best way is to combine NPS along with the CSAT system so that the best results can be attained. With the help of the right software, it will be quite convenient to combine NPS and CSAT to get the combined results. When the combination is set, there are four results that are available.
The first set of customers is those who are not satisfied and are also not loyal. It will be a waste to invest time in them.
The second set has customers who are satisfied but are not loyal because they may get distracted by other competitors too. These can be tried upon by offering more products to them.
Now there are customers who have been loyal to the brand but they have faced bad customer service and hence are not satisfied. It is worth investing time in them to earn their satisfaction level back. The final set of customers does not need much effort. These are loyal and also are highly satisfied. You just need to maintain your service and quality so that they always remain the same.
You will find varied options in customer satisfaction software to know the satisfaction level of the customers. But these may not determine whether the customers will stay loyal to you or not. piHappiness offers you the right option to combine NPS and CSAT to get the best results. We offer you a way to measure your customer loyalty so that you can work upon it and climb up the stairs.