Customer Satisfaction: what it is, importance, how to improve it and indicators

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There has been a lot of talk about customer satisfaction and putting customers at the center of organizations. It is no wonder that customers are a company’s main assets. The importance of having a satisfied customer is immense: people and companies are increasingly demanding and loyal to products and services that deliver value with minimal friction.

In this post, we will explore what customer satisfaction really is and why it is important, and how to measure the experience in your business.

Know what customer satisfaction really is
Customer satisfaction is nothing more than a performance indicator that takes into account, from the customer's perspective, the achievement of expectations. From the gap between expectations and reality, a feeling of satisfaction is generated when expectations are met or exceeded, or frustration when the experience falls short of expectations.

Customers who have a positive experience tend to become brand advocates. The concept of “word of mouth marketing” states that people tend to share their experiences. There is no exact number, but research suggests that on average, satisfied customers share their positive experiences with about three to five people.

On the other hand, customers with negative experiences can “spread” their bad experiences with up to 15 people, and amplify the effect of this dissemination using social networks and websites such as “Reclame Aqui”.

Importance of customer satisfaction for company growth
Keeping customers satisfied goes far beyond “forming” promoters and detractors of your brand, as mentioned above.

Marketing guru Philip Kotler once said that it costs five to seven times more to acquire a new customer than to retain an old one. This does not mean that efforts to attract new customers are not important, but it further reinforces the importance of delivering value and satisfaction to customers by focusing on retention and expansion.

Loyal customers drive an increase in Life Time Value ( LTV ) and a reduction in Customer Acquisition Cost ( CAC ) through upselling and cross-selling. In other words, satisfied customers have much more potential to generate new revenue.

In the reality of Br24 , for example, we consider that a customer who has a Professional license and switches to an Enterprise license (a license with more users) is doing an upsell. If this same customer purchases the Chat Booster france telemarketing data and PowerZap applications to make their sales process more agile, they are doing a cross-sell.

Factors that influence customer satisfaction
There are several factors that can influence customer satisfaction. We have listed three of them:

Product quality and service
Customer satisfaction is evidenced by the customer's smile when served by the salesperson.

This is a very impactful “combo” on customer satisfaction, and we could say that having expectations met in just one of these factors ends up “cancelling” the other factor.

Let's look at a practical example: Here at Br24, we value customer service in a fast, friendly manner, focused on always delivering success to our customers. However, if the Bitrix24 tool does not meet a fundamental requirement for the customer, they will not be 100% satisfied, and this may even lead them to look for another tool option.

The opposite can also happen. We are official distributors of Bitrix24, and often customers from other partners come to our base and have not found the expected service from these partners . In other words, the product meets expectations, but the service does not.

Service that falls short of expectations may be related to communication and service channels (the easier it is for the customer, the better), as well as issues related to agility, problem-solving and technical knowledge. Effective problem-solving

This factor also has a direct impact on customer satisfaction. Here at Br24, when customers access our support , for example, success for them means having their problem or question resolved quickly and effectively.

Cost-benefit
The balance between the investment made and the benefits perceived becomes a determining factor for customer satisfaction and loyalty.

When customers perceive that they are getting more value than they are paying for, satisfaction increases significantly. It is not just about price, but how much value a product or service purchased fulfills and helps customers solve their problems.

Let's look at a practical example of how these factors work together. This year I had a problem with my iPhone. When I called for support, I received excellent service: Felipe (I still remember the name of the person who helped me) made a point of connecting with me at that moment.

The service was good and fast, Felipe was very helpful, but at the end he said to me: Mrs. Mariana, I don't know what the problem is with your device, you will need to schedule an appointment and take it to the nearest service center!

Negative point: although I received quick and helpful service from Felipe, he was unable to effectively resolve my problem when I needed it, thus frustrating my expectations.

How to create real customer satisfaction indicators
Well, now that we've covered the importance of having satisfied customers, check out some tips on how to create these satisfaction indicators :

Conduct research with your consumers
Qualitative research has a lot to say about customer satisfaction. It is a way to deepen your understanding of expectations, perceptions and feelings about your product/service.

This research model can yield many insights for improvement, but it is important to be clear about the answers you want to seek before applying it. Do you want to understand customer satisfaction with your support, the service provided by a team, or satisfaction with the usability of the product? This is essential to segment the customers to be surveyed and the questions that should be asked.