KPIs & Metrics

5 KPIs to Measure Customer Satisfaction

How are you making sure your customers are well served?

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Taking care of customers is one of the most important things your business does. But customer service can seem vague—how do you ensure you’re doing a good job? Will customers really be honest when giving feedback? What about selection bias? It’s hard to feel as if you’re truly measuring your customer service efforts. But if you can’t measure your customer service, it’s hard to know if you’re improving it.

Here are five key performance indicators (KPIs) you can use to help gage how satisfied your customers are.

Customer Retention

The number one way you can tell that a customer was happy? They return again and again. See how many of your customers return to purchase from you after their first initial purchase. This will tell you more about whether or not they were satisfied than almost any other metric. Someone who truly believes a brand has value will become a repeat customer.

Self-Assigned Customer Satisfaction Score

When you send out your customer feedback survey, you may be disappointed with how many customers actually respond. But it’s still valuable data. Give customers a numeric scale of 1-10. The average of everyone’s scores is your overall customer satisfaction score.

Referrals

Are customers referring you to their friends and family? This is an especially important metric if you’re in an industry where your clients typically only use you once, like a wedding planner. How often do clients recommend you to the people in your life? Consider beginning a referral program to incentivize customers to share your name and see who is able to spread the word about your company quickly. If customers aren’t really talking about you to their inner circles, chances are they were less than satisfied.

First Contact Resolution

No customer likes for his or her time to be wasted. When people are contacting your call center, how quickly are you able to solve problems for them? You want your first contact resolution rate to be as high as possible so that customers don’t need to call again and again.

Call Abandon Rates

Another important metric that can be calculated through a call center is your call abandon rate. Your customers will get frustrated and hop off the phone if they’re asked to wait too long. Keep this KPI as small as possible by utilizing a callback software, working through customer issues quickly, and setting up automated help systems through your website instead of needing every client to call in with an issue.