Customer satisfaction often gets left behind in a fast-growing company’s list of priorities. But, the sooner you start tracking customer satisfaction metrics, the sooner you can diagnose potential problems in your business and solve them.
In this guide, I’m going to walk you through all of the key customer satisfaction metrics you should be tracking.
We’ll look at:
✔ How Do You Measure Customer Satisfaction?
✔ Why Do Your Customer Satisfaction Metrics Matter So Much?
✔ 6 Key Customer Satisfaction Metrics You Should Be Measuring
✔ How to Collect Customer Satisfaction Data
By the end, you’ll have actionable steps to implement in your business, allowing you to easily set up a system to collect feedback, and track your customer satisfaction metrics.
Let’s dive in.
There are a variety of metrics that you can use to measure customer satisfaction, including Net Promoter Score, Customer Satisfaction Score, Customer Health Score, and more.
Most companies don’t need to measure every single metric (but it won’t hurt). Pick a few to focus on, figure out how to improve them, and move on to a new area to improve.
By looking at multiple metrics together, you can get a better understanding of how happy your customers are, and understand how different parts of your customer experience affect satisfaction. 😇
As well as looking at quantitative data, run surveys and customer interviews to find insights that would be impossible to learn from quantitative methods.
Just because someone is paying you, doesn’t mean they’re happy with the service you provide.
By keeping your ear to the ground, you’ll have a feedback loop between your customers and your team.
You can use your feedback to:
✔ Identify pain points in your product or service
✔ Implement user onboarding email or live chat sequences to improve the service experience
✔ Find out what your users truly care about and use that in your marketing
It’s not just a feel-good measure, either.
Once you start measuring your customer satisfaction levels, you can make decisions to improve them and ensure your customers stick around, which is key to sustainable business growth.
In the next section, let’s take a look at some of the most important customer service metrics to track.
Every business will have slightly different definitions of customer success, so some of these metrics will be more relevant than others.
The key is to adapt them to your business and use them appropriately.
First, we have Customer Satisfaction score, or CSAT for short. It’s a general measure of customer satisfaction.
The most simple way to calculate CSAT is to ask your customers: “How satisfied are you with [product / service name]?”.
Then, they respond on a one to five scale:
Once the results are in (aim to collect as many responses as possible), you can calculate CSAT with this formula:
(Positive Responses / Total Responses) * 100 = CSAT
Depending on the service you provide, a good CSAT will vary, but aim for at least 80%.
You can easily run CSAT surveys via a live chat widget, or the occasional email survey.
Anything less than that and there’s likely to be undiagnosed problems in your product/service delivery.
Net Promoter Score, or NPS, is a popular customer satisfaction metric to measure.
You’ll ask your customers: “How likely are you to recommend [company] to a [friend/ colleague]?”
You then categorize answers into three buckets based on the score they gave.
Research by Bain found that a customer experience promoter has a lifetime value of 600-1,400% more than a detractor.
To calculate your NPS, use the following formula:
% Promoters – % Detractors = NPS
It’s a great metric to track because it’s holistic. Your customers wouldn’t recommend your product to their friends or coworkers if the support was terrible (even if your product is useful).
If your NPS is low, you can start by breaking up the customer experience into different parts, and work on improving them individually.
For example, let’s say you have an average NPS of 60. You redesign your onboarding process, changing nothing else in your product. Users signing up after the redesign now give an average NPS score of 75. You now know that your onboarding was a key pain point in the customer journey.
You can work on improving different parts of the customer experience, and track how each one affects NPS.
You can easily measure NPS using Customerly. Simply head to the NPS tab in your dashboard, then set your parameters.
Once it’s running, you’ll see data on your NPS score, vote distribution, and more.
As well as seeing quantitative data, you’ll see what your customers are saying about your company.
With the combination of quantitative and qualitative feedback, you’ll get a full picture of how your customers are feeling.
Looking at your NPS will force you to confront that not everyone would recommend your product to others, and you can then figure out how to take the customer experience to the next level.
Not sure if you need NPS? Here are 7 Reasons why every SaaS needs to start measuring NPS.
Customer Effort Score (CES) is a good indicator of how easy it is for your customers to have their problems solved.
It’s a good metric to understand how effective your customer support is.
To measure your Customer Effort Score, ask your customers to score the ease of ticket resolution on a 1-10 scale. Then, use this formula:
Total CES Sum / Number of Responses = Customer Effort Score
But, why measure CES? A couple of reasons.
CES is 40% more accurate at predicting customer loyalty than CSAT.
It’s also a good way to identify areas to improve in your customer service systems, for example, by adding a self-service knowledge base or chatbot.
Customers will spend less time looking for information they need, and your team will spend less time on support calls or writing replies.
As always, it’s key to remember that the metric doesn’t exist in a vacuum. A CES will show a customer’s feeling at one point in time. For example, you might consistently score well on your CES, but if a single customer then says it took a look of effort to resolve a problem, it will reflect poorly on your customer support team.
To improve your CES, focus on improvements such as:
You can easily create an effective knowledge base using Customerly that users can search through to quickly solve problems.
First, head to the Help Center on your dashboard.
Create your help center, and create docs around common pain points your leads and customers have.
Once your help docs are live, your users will be able to search through them directly from your live chat widget.
They’ll get instant answers, making the problem-resolution process effortless.
If there’s no answer to their question, they can easily start a new conversation with your support team.
It’s a simple and effective way to help people solve their problems without routing every new question to your already-busy team.
At the end of every help doc, you can also ask your customers how helpful it was by letting them react to it in a click.
If people aren’t satisfied with the answer you provided, you know that there’s an opportunity to update your answers to help your customers.
Customer Health Score (CHS) is a metric unique to your company and product. It’s a score you give customers based on if they’re taking actions you consider important.
For example, if you run an email marketing platform, you’ll consider outcomes like:
These are metrics that are tied to success and customer retention with your product.
At Customerly, our CHS is linked to actions like:
✔ Help Desk being setup
✔ Customer feedback surveys implemented
✔ Number of contacts imported
✔ Whether someone launches an NPS or not
One way to calculate CHS for key actions is:
(Number of new users doing [valuable action] within 30 days / Total new users in last 30) days * 100
Your CHS will need to be updated whenever you ship new product updates, or your onboarding process changes. The key is that it’s linked to someone being successful with your product.
An easy way to improve your CHS is to use an in-app live chat triggered at key moments, or to run regular customer interviews with new users to find areas to improve in your onboarding.
Surveys, feedback, and customer interviews are nice, but the real test of how happy your customers are is your churn rate.
To calculate your customer churn rate, you can use the following simple formula:
Total Number of Churned Customers / Total Number of Customers = Churn Rate
There are other ways to calculate churn depending on your business model and growth rate. But, however you choose to measure it, it’s a critical metric to keep track of. If your churn is high, it’ll be hard to grow. 🧨
The typical churn rate for SaaS companies is in the range of 2-8%, according to data from ProfitWell. If your churn is higher than that, you’ll have trouble growing your revenue as every new customer will be offset by a drop in revenue.
So, you now have a dashboard full of metrics to track on a weekly or monthly basis.
But, don’t forget to ask your users for qualitative feedback.
Use in-app feedback questions, ask your customers for feedback in your marketing emails, and encourage them to communicate with you.
Over time you’ll discover unique insights that wouldn’t be possible without hearing about them from real users, and wouldn’t show up in an NPS survey or churn rate calculation.
For example, you can monitor the What do you dislike section on G2.
Here’s some useful qualitative feedback one customer left Mailchimp:
You’ll see common areas your customers have problems with that they might not share with your team or feedback tools.
One simple way to collect feedback from active users is to use in-app surveys.
These are automated messages that you can trigger at particular moments.
For example, you could create a survey that triggers after someone completes the onboarding process, asking a questions like:
You can easily set these up using Customerly.
Firstly, head to the Surveys tab.
Next, define who will see your survey, and what events need to happen for them to see the survey.
Some popular Events to use to trigger surveys are when a free trial is activated, or a paid subscription starts.
Test multiple variations, and see what your customers respond to most.
You can create any type of survey you want, choosing between options like:
You can also add logic to your surveys. For example, if someone replies to the above question saying it was “Very hard” to set up a campaign, you can send them to an open-ended question to find out more.
Once your survey is finished, write a nice thank you message. After all, your users didn’t have to answer, so it’s good to show some appreciation.
When everything is in place, you can review your campaign, decide when you want it to start (you can also set an end date), and hit Send.
Your survey will go live and you can start collecting valuable customer feedback on autopilot.
You could ask for quantitative feedback, qualitative, or even use a net promoter score.
In-app surveys are also a great way to hear from unhappy customers before they churn.
As soon as someone leaves negative feedback, your team can reach out to them, solve the problem, and make sure their problems are solved.
If someone cancels their subscription or simply doesn’t return after starting their trial, don’t take it personally.
It’s an opportunity to learn about what your product is missing, or areas your customers struggle with.
When someone churns, send them a friendly email.
Ask a single, simple question.
What were you planning on doing with [product name], and what stopped you from achieving that?
It’s open-ended enough that people will be happy to answer, and you’ll uncover insights you may not have even thought about.
To easily start collecting feedback from churned customers, you can use the pre-built funnels in Customerly.
Head to the Funnels tab, and decide on your survey type. We have a pre-built funnel specifically designed for collecting feedback and recovering churned customers.
You can easily edit the funnel, including the contents in the post-churn emails, using the visual builder.
Finally, add your campaign settings to ensure it delivers at the correct time. You can add extra details such as the team member who will receive notifications, days to send emails on, and time between actions.
Hit Publish, and your post-churn survey is live!
You’ll be able to learn from every customer that cancels, gather useful feedback, and recover customers that would have churned if you never reached out.
Monitor your social media feeds, post comments, and review sites.
If you can, join Facebook or LinkedIn groups where your customers hang out. Engage in conversations and build relationships. You’ll quickly find out ways to cater to your customer base more effectively, and prioritize areas for improvement. 🎯
It’s good to mix in social listening on review sites and social platforms, because if you’re only sending out surveys there’s a risk of your customers getting survey fatigue.
They’ll end up ignoring notifications when they see your company name because they know you’re just sending another survey. Your customers might often not be fully honest with you because they don’t want to be rude, but on review sites and on social media, you’ll hear honest, no-fluff feedback.
To measure your customer satisfaction levels, you’ll need tools to collect and analyze the data you’re collecting.
Customerly lets you collect NPS feedback from customers and users using:
Whatever type of feedback you need, it’ll be simple to create a survey and start collecting it.
One of the most popular survey-types, the NPS survey, can be launched in a few clicks.
Firstly, head to your NPS tab in your dashboard.
Then, decide who you’re targeting.
You can combine multiple targeting filters with and/or logic, so you know exactly who is going to see your NPS. For example, you might want to understand your NPS for new customers still in the first 30 days of their subscription.
Decide when you want your survey to show. You can turn it on or off on certain days, and even decide what time of day you want it to show.
Finally, when you’ve reviewed your campaign and are ready to go live, click “Start Deliver”.
Your campaign will be sent to any leads matching your targeting criteria, and you can start measuring how much your customers love your product.
You’ll be able to see data and gather insights to improve your product experience, find out what your customers really think, and deliver amazing support to your customers.
Ready to start measuring your own customer satisfaction metrics?
Get your free Customerly account today – our team will be happy to help if you have any questions.