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Customer Satisfaction

What Is Customer Satisfaction?

The terms "customer satisfaction" & "customer experience" are the new buzz words in the field of marketing. Customer satisfaction is very important because without that your business would fail in the market. For some businesses customer satisfaction aka user experience is the only thing that differentiates them from their competition. Businesses have started realizing the importance of it and it's far more prevalent today.

Customer Satisfaction (CSAT)

Customer Satisfaction is the term to describe a way of measuring the satisfaction level of your customers. It is used to check how happy your customers are with your product/service. To measure this, companies tend to use a few different types of surveys which are often sent directly once the interaction with the customer is over.

For example, a CSAT survey is sent shortly after a customer contacts your support team to get their queries resolved. 

CSAT is generally transactional, it measures customer satisfaction with a specific interaction. This differentiates it from more rational metrics like Net promoter score (NPS), which aims at measuring the overall experience of your customers.

Customer Experience (CX)

Customer Experience (CX) is the result of how a customer perceives their interaction with your company. It's not easy to measure as it involves different aspects such as:

- Speed of service.

- Agent friendliness.

- Clarity of the marking content, etc.

Customer experience involves each and every experience that a customer goes through in his/her customer journey. A lot of research has been done to improve the customer experience, leading to clear and actionable steps that are needed to be taken to provide a positive customer experience.

Customer satisfaction is a small but integral part of the customer experience. Not emphasizing enough on customer experience may lead to a negative impact on the overall perception of the brand.


Why is Customer Satisfaction So Important?

1. Retaining customers is cheaper compared to acquiring new customers.

Acquiring new customers is never easy, it takes in a lot of resources.It includes:

- Content creation,

- Inbound marketing,

- Outbound marketing,

- Lead nurturing,

- Closing the deal,

- Time & energy,

- And lastly, a lot of money/resources.

As per research, acquiring a new customer is 5 to 25 times more expensive than retaining your previous customers. Though it might look like a shocking fact for some, it makes a lot of sense from a customer's perspective. Your customers won't be very happy about spending money on your product or service until they are completely satisfied with your offerings. Building trust isn't easy and with thousands of companies offering similar solutions making a decision would be difficult. A satisfied customer trust's your brand and your offerings making them more likely to return in the future.

2. Competition-driven markets.

The chances of having no competition in your industry are highly unlikely. The internet revolution has given industries a platform to sell their products and services. This has pushed companies into becoming highly competitive. 

The only way to stand out and make your presence count is by giving a phenomenal customer experience.

A happy customer would not only return but will also promote your company through word of mouth. On top of that, a happy customer is also willing to pay more for a better experience.


3. Customer satisfaction drives growth.

A satisfied/happy customer would bring growth to a company by repeated purchases. To survive in any industry, you need to have a good customer base and a strong following in the market. If your customers are not sticking with your company in the long run, your business would end up failing.

All this is only possible by providing a good customer experience. Hence we can conclude that customer satisfaction indeed does drive growth in your business.


4. Happy customer = Happy employee (Improves morale).

No customer support team likes to deal with angry and unsatisfied customers.

Every business faces some unsatisfied customers at times, but no agent would like to interact solely with unsatisfied customers at all times. Facing such customers at all times every day would be exhausting for your agents. This might even lead to lower employee morale and lower engagement rates.

A disengaged employee has a harder time serving your customers and also providing a good customer experience to them. This loop continues until you change it by providing a good experience for your customers.

A good customer experience can reverse the above cycle.

There's a direct relationship between customer satisfaction and agent satisfaction. It's hard to find out what comes first, but it’s critical to invest in both to maintain a balance.

How To Improve Customer Satisfaction?

Few practices which could be used to improve customer satisfaction are:

  • Listen to your customers.
  • Be proactive.
  • Be honest and try to manage your customer's expectations.
  • Understand their needs and wants and take necessary actions on it.

How Can Chatbots Improve Customer Experience?

Chatbots can improve your customer's experience by providing:

1. A smooth customer journey.

2. Provide personalized services in real-time.

3. Reduces friction, makes it more convenient for your customers.

4.  24/7 availability.

5. Personifies your brand.

6. Collects customer data & feedbacks.

About Engati

Engati powers 45,000+ chatbot & live chat solutions in 50+ languages across the world.

We aim to empower you to create the best customer experiences you could imagine. 

So, are you ready to create unbelievably smooth experiences?

Check us out!