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How Do You Measure Customer Satisfaction?

We are driven by customers, we react to feedback, and we build organizations to interpret this feedback into market-driven solutions and products. In a perfect world, right? We have different motivations to gather customer information, depending on the part of the business you speak to. What does customer measurement mean to your organization, and how do you use it to improve what you do today? Do you measure “satisfaction,” “loyalty,” “experience,” or the new holy grail of customer measurement, “would you refer?” Do you manage a customer scorecard on different variables important to your business?

Sometimes it takes going back to the basics to develop a good customer survey strategy that aligns with what you really want to know about your customers.

Administration: Surveying customers is an art, not a science. Why? Because, like an artist, you never have enough money to produce the perfect picture, you never have a specific time to finish it, and the end result can be interpreted differently by many viewers. Before you start, outline some fundamental “outcomes” and give these clear definition and controls.

Targeting: Finding that audience of customers, lost customers and prospective customers is key to any survey strategy. Finding the feedback “pool” is key. There are finite groups that will respond to surveys, will go to great lengths to provide feedback and will not require a great incentive to participate.

Methodology: Your methodology should align with your resource and budget limitations. If you have a limited budget and limited resources, then the frequency and depth of this analysis will vary.

Feedback Loops: Don’t ask for something unless you’re prepared to handle the results. The result may be a need for intervention. Are you prepared for this if you get an overly negative response? What will you do with those that “will not refer you to a friend or colleague”? Be sure to structure your programs to align with your ability to support response.

Compensation: Should we pay for feedback? Call it a customer reward, but whether you pay or not, you should budget this compensation in some form, as you’ll find some customers will only respond to incentives, some will do it free, and others will tell their friends about the rewards. There are creative ways to do this without conditioning your customer to rewards, yet promoting the right activities.

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