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Home | Customer retention | How to Measure Customer Satisfaction? KPIs, Methods, and Tips

How to Measure Customer Satisfaction? KPIs, Methods, and Tips

Every company knows the importance of customer satisfaction. But they do not necessarily know how to measure customer satisfaction itself.

This is the heart of the matter. There are many quantitative and qualitative indicators – some of which have already been discussed on Salesdorado: attrition rates, NPS, customer reviews, etc. – so that sometimes you don’t know where to start.

In this article, we won’t insult you by explaining why customer satisfaction is important. But we will give you a brief explanation of what customer satisfaction really is and how to calculate it, using both quantitative and qualitative KPIs.

How to define customer satisfaction?

The problem is usually to measure what is not said. A very satisfied customer will readily say so, and a very dissatisfied customer will say so even more readily. But how do you measure the satisfaction of the majority of customers?

To measure customer satisfaction you have to measure, and that requires interaction with the customer. But there are many situations in which a satisfied customer is one with whom you never speak.

This introduces a huge bias in the measurement, since we only measure the effectiveness of interactions with customers, so we only measure the extremes, and we remain quite far from the reality on the customer side.

This is very common in software, but also in service: in B2B, we often call on the outside to solve a problem, and especially to avoid having to deal with it.

If we focus on monetary and financial metrics, we can approach the notion of customer satisfaction by the difference between the perceived value of your product or service and the cost.

You don’t need to know anything about it: when we talk about customer reviews, we are referring to the subjective comments of a customer who has bought and used your product or service. Basically, they can be found in reviews of online shops, websites and other online services. customer review platformsproduct comparison sites, social networks, etc.

Even so, customer reviews are super important and can determine the success or failure of your brand’s offerings. In fact, the majority of customers will actively browse hundreds of reviews before buying.

Going further

If you still need convincing, we suggest our article on How to get more good customer reviews (and why)

Pro tip

We recommend reviewflowz.com which is a free solution to aggregate all your customer reviews.

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Filed Under: Customer retention, Sales strategy Tagged With: Guides

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Salesdorado aims to bring some of the best tips, tools, et resources to help you close more sales

Axel Lavergne, Quentin Sureau and Yassine Hamou Tahra started the site in 2020 as a go-to resource for B2B sales in France.

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