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What are CSAT and NPS? How to increase customer satisfaction

By 28. October 2022October 23rd, 2023No Comments
increase customer satisfaction - nps and csat

To increase customer satisfaction is key nowadays! Companies that value their customers’ feedback and opinions perform better than those who do not. It is important because customer feedback plays a key role in identifying and rectifying problems with a company’s products or services. In addition, consciously gathering feedback helps to establish a vibrant community. When customers are questioned about their experiences, they feel valued.

Customer satisfaction on online marketplaces and D2C webshops

The Internet ensures transparency – whether companies want it or not. Customers express their opinions about a company on the internet. Therefore, companies must keep their eyes and ears open in many places to find out what their customers write and think about them.

Improve Net Promoter Score (NPS) – What is NPS and how can you improve it? 

The Net Promoter Score (NPS) is a key metric that measures how loyal customers are. It is mainly about how willing customers are to recommend products and services of a certain brand to their friends and family. In the NPS evaluation, a distinction is made between critics, passives, and promoters.

The Net Promoter Score is calculated as follows:

NPS = Promoters (in % of all respondents) – Detractors (in % of all respondents).

Detractors are customers who responded to a satisfaction survey with values between 0 and 6 on a scale of 0 to 10. Therefore, detractors are more likely to be dissatisfied.

A low NPS indicates that a company has more detractors than promoters. But fortunately, there are various tried-and-tested methods for improving the Net Promoter Score.

What methods can be used to improve NPS and increase customer satisfaction?

Surveys are a good way to get honest customer feedback. However, no survey guarantees a customer will purchase in the future. It is due to the possibility of discrepancies between what consumers report in surveys and what they ultimately do. Improving the Net Promoter Score does not happen overnight. It requires action, good collaboration within the company, and the use of modern technologies.

Improve NPS: Identify relevant customer feedback and increase customer satisfaction

Not every customer feedback is relevant and needs to be answered to improve NPS. In order to improve customer satisfaction while efficiently managing your resources, it is important to identify relevant feedback. For this purpose, a key tool in which all comments are collected and filtered is elementary.

Improve response time to customer comments

Companies that respond quickly to customer complaints or suggestions can improve NPS and increase customer satisfaction. However, this is only possible with constant monitoring of all channels. The best way is to have a central platform where all information and comments are collected. It is crucial to define responsible teams who respond to customer feedback. In the case of high volumes, prioritization through segmentation also helps.

The goal is not only to “appease” critics, but to also encourage promoters to continue talking positively about the company. For this purpose, loyalty programs or discounts, for instance, have proven effectiveness. Meanwhile, artificial intelligence is able to help provide automatic answers to frequently asked questions, thereby the response time can be decreased significantly.

Establish a feedback culture among customers

Not every customer is willing to share their opinions publicly. Therefore, offering clients a variety of ways to express themselves is beneficial. These include surveys, forums, or the establishment of a peer-to-peer community.

Increasing customer satisfaction: managing the “passives”

Many companies forget about the “passives” while calculating NPS, although they can play a significant role in increasing the NPS. Direct queries or post-purchase follow-up correspondence may be beneficial. Incentives such as exclusive discounts or early-bird offers can turn these individuals into promoters.

Provide self-help options

Many customers value self-help documentation. Depending on the product or service, it includes how-to guides, tutorials, videos, FAQ sections on the website, online communities, or a help center. That being said, self-help options can really increase overall customer satisfaction.

What is CSAT in e-commerce?

When it comes to e-commerce and measuring customer happiness on online platforms, people do not just talk about the NPS, they often like to talk about the CSAT value. However, what is CSAT? CSAT stands for Customer Satisfaction. To determine the value, customers are asked in a feedback survey for their opinion on how satisfied they are overall with the products or services they have received. Customers can answer on a five-point scale. The individual levels mean:

  1. very dissatisfied
  2. dissatisfied
  3. neutral
  4. satisfied
  5. very satisfied

In reality, if businesses want to boost customer happiness, they should use both indicators complementary rather than choosing between CSAT and NPS.

Customer satisfaction and the CSAT in the gominga Review Manager

Especially in industries with strong competition, it is crucial to have a unique selling proposition that fulfills all customer needs. With an excellent customer experience, you may distinguish yourself from your competitors and offer real added value to your customers. It increases the perceived value of your product and service. In 2022, An excellent customer experience is more important than ever.

 

The Customer Satisfaction Score (CSAT) is used as a key performance indicator in review management to make customer satisfaction apparent. With the Review Management Software from gominga, it is not only possible to centrally manage, evaluate and process all customer reviews scattered on the internet. The Review Manager also provides the possibility to determine the CSAT. It doesn’t matter whether it’s product reviews on Amazon, your brand webshop, mobile app, or location reviews.

 

The CSAT can be calculated in Review Management as follows:

CSAT = (number of 4 and 5 star reviews) / (total number of reviews) * 100

By analyzing it with the service of gominga, it is possible to quickly identify which product or service the customer prefers particularly, what and where exactly weak points or problems are, and how they can be remedied. Therefore, companies can increase customer satisfaction on marketplaces and webshops.

Conclusion

Companies can increase customer satisfaction by listening to their customers, understanding their problems, and being willing to fix them. The methods discussed in this article can help measure customer satisfaction and improve customer loyalty. The key is to use a professional review management tool and consistently implement customer feedback findings. With the gominga Review Manager, all customer feedback such as reviews, ratings, and questions can be managed, responded to, and evaluated in a centralized manner on a wide range of platforms.

More about review management with gominga

Learn more about how the gominga review manager can help your brand delight shoppers and create a better customer journey across every channel. Or request a demo here.

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