In the digital age, where every online interaction leaves a trail of valuable data, businesses must navigate this sea of information strategically. Marketing research, especially when focused on gauging customer loyalty, emerges as a strategic cornerstone in customer retention efforts. In this era of Big Data and online transactions, understanding customer satisfaction is paramount not only for evaluating a company’s efforts in customer acquisition and retention but also for assessing the overall effectiveness of its business advertising activities.
This article delves into the comprehensive landscape of customer satisfaction surveys, shedding light on their significance as a pivotal tool for contemporary businesses. Our exploration encompasses key performance indicators (KPIs) tailored specifically for measuring customer loyalty, including:
- Net Promoter Score (NPS);
- Customer Satisfaction Index (CSI);
- Customer Effort Score (CES);
- Customer Satisfaction Score (CSAT);
- Retention Rate.
Embark on a journey where marketing research acts as the compass, and customer satisfaction surveys serve as the guiding star, leading businesses to the pinnacle of customer delight.
Call Center Surveys: Leveraging the Benefits of CATI
One of the most effective, efficient, and economical tools for conducting marketing research is Computer Assisted Telephone Interviewing (CATI) through call centers. Typically based on carefully crafted questionnaires, these call center surveys are conducted methodically, allowing operators to make calls to a customer base selected according to project goals.
The use of CATI facilitates semi-automated marketing surveys, enabling large-scale data collection within a relatively short time frame. With automated systems and specialized programs in place, operators focus solely on posing questions while the computer handles the rest, from dialing numbers to recording information.
CATI-based marketing surveys offer a swift means to gather consumer opinions on products or services, formulate hypotheses about key motivations, and draw conclusions about the most effective market promotion tools. Additionally, these surveys allow for Mystery Calling and inquiries aimed at measuring customer loyalty based on specific metrics.
The Importance of Customer Loyalty Marketing Research
Loyalty is an elusive emotion, challenging to measure but pivotal for financial growth and overall business success. According to the Zendesk Customer Experience Trends Report 2022, 61% of customers will cease using a company’s services after just one negative experience. Hence, customer loyalty marketing research is indispensable for:
- Boosting revenue
- Acquiring new customers
- Retaining existing customers
Customer satisfaction surveys help identify a company’s strengths and weaknesses, devise development strategies, and track the effectiveness of implemented changes. These surveys can evaluate various business segments, including delivery, sales, customer service, and more.
Customer Satisfaction KPIs: Key Metrics for Success
Let’s explore the crucial metrics to focus on during customer loyalty marketing research, how to calculate them, and how to apply this knowledge for ongoing customer retention efforts.
Net Promoter Score (NPS)
The Net Promoter Score (NPS) measures the percentage of customers willing to recommend a service or company. Conducted through various channels, including call centers, email, or website forms, NPS surveys provide a straightforward calculation based on a short questionnaire. The universality, accessibility, and informational depth of NPS make it a valuable tool for segmenting audiences, developing effective strategies, and addressing customer churn issues promptly.
NPS marketing research has the following advantages:
- Simplicity: The score is calculated based on the results of a short survey using a simple formula.
- Multiple implementation tools: NPS marketing surveys can be conducted through call centers, email, website forms, etc.
- Affordability: Conducting the survey does not require a significant investment of financial and time resources.
- Universality: NPS is suitable for evaluating the success of companies of any scale.
- Information for marketing and sales departments: The survey helps segment the audience and develop effective measures for working with each target group.
- Customer retention: NPS marketing surveys and analysis of results allow identifying the reasons for customer churn and taking measures to address these reasons.
Customer Satisfaction Index (CSI)
To find out whether customers are willing to recommend your product to their acquaintances, it is necessary to measure the NPS (Net Promoter Score) customer loyalty index. But what if this indicator is decreasing? How do you understand what exactly disappoints customers and why they decide to leave? To understand the exact reasons for a decline in loyalty, there is another indicator – CSI – Customer Satisfaction Index.
CSI is the Customer Satisfaction Index, which shows the most important parameters for customers. Thanks to it, you can determine what needs special attention in the company, which business processes to start improving and developing, and what can be left as it is. CSI marketing research allows understanding:
- Whether customers are satisfied with the products or services you offer.
- What customers like about competitors that you don’t have.
- How customers rate the company’s level of service.
- Whether the attitude towards the company has changed after you introduced any changes or conducted staff training.
It is best to conduct marketing surveys on CSI and NPS indices in conjunction. This way, you can find out which parameters for assessing customer satisfaction most strongly influence loyalty.
Customer Effort Score (CES)
CES, is the customer effort index. It indicates how convenient it is for the customer to interact with the company: use the website, place orders, and communicate with customer support. The results of this metric help identify the stages where users face difficulties and how to eliminate these difficulties to prevent customers from switching to competitors.
CES marketing surveys help companies address several tasks:
- Increase conversion: The less effort a customer puts in, the higher the likelihood they will take the desired action, such as placing an order, subscribing to a newsletter, or registering.
- Influence repeat purchases: CES levels help predict the likelihood of future purchases.
- Retain customers: Improving each stage of the sales funnel helps reduce customer churn.
- Acquire new customers for free: Satisfied users are more likely to recommend the company.
- Identify growth points: A comprehensive evaluation of customer efforts allows analysis at all stages, finding company strengths to highlight when communicating with potential customers and weaknesses that need improvement.
Important note: Conduct customer surveys immediately after interaction while details are fresh in their minds. CES marketing research is carried out through emails, chatbots, survey forms on websites, mobile apps, or through call centers.
CSAT (Customer Satisfaction Score)
CSAT (Customer Satisfaction Score) is an assessment of satisfaction and a tool for analyzing specific aspects of company activity. CSAT marketing research is similar to Net Promoter Score (NPS) evaluations, as both are based on a single question: “How satisfied are you?” or “How much do you like it?”. This methodology is less standardized, allowing the use of a 3-point or 10-point scale (typically a 5-point scale).
Customer satisfaction is the logical basis for loyalty. It shows how satisfied or dissatisfied a customer is with the quality of products and services, service levels, and other aspects of interaction with the company. A satisfied customer is much more likely to become a loyal customer compared to a dissatisfied one.
CSAT and NPS marketing research: key differences
While business owners can use CSAT and NPS marketing surveys to analyze customer satisfaction, there are key differences between these two metrics:
- CSAT evaluates the customer experience when purchasing products or services, while NPS assesses the overall customer attitude toward the company or brand.
- CSAT surveys measure short-term satisfaction, while NPS surveys are better suited for measuring long-term brand loyalty.
- CSAT surveys are useful for iterative improvements, while NPS surveys are helpful for determining significant customer loyalty trends over a longer period.
Customer Retention Rate
For businesses, it is always cheaper to sell to an existing customer than to attract a new one. Therefore, customers who have purchased from a company at least once don’t need to be extensively informed about product benefits or introduced to the brand from scratch. They are already familiar with the company’s product range, delivery terms, etc. They have had a positive purchasing experience, and you have a 60-70% chance of selling to them again.
Customer Retention Rate is the ability to maintain relationships with customers, expressed in a numerical equivalent. If the rate is higher than average, it indicates that customers regularly buy from you and recommend the company as a reliable provider or seller.
Important note: Customer surveys for the Retention Rate will vary depending on the business industry. It’s essential to track customer churn and retention percentages. If the number of customers who discontinue cooperation is higher, it’s crucial to pay attention to this and find out the reasons.
Sample Questionnaire for Marketing Survey in a Contact Center
For CATI (Computer Assisted Telephone Interviewing) marketing surveys, there are specific questionnaire templates. Templates consist of a script with a survey question plan or a set of instructions that help call center agents conduct effective conversations with customers. The script includes not only greetings and farewells but also answers to common questions from the survey, as well as instructions for resolving specific issues.
Using a template makes the customer satisfaction survey process simpler and more efficient. Instead of creating a new questionnaire for each marketing survey in the contact center, you can use a template and adapt it to the specific project’s needs. An automated questionnaire allows the interviewer to track all questions during the phone conversation.
Here’s a call center survey questions samples for a marketing survey in a contact center regarding customer satisfaction with the company’s product/service:
- Hi! My name is [operator’s name], and I’m a specialist from [company name].
- Where did you first learn about [product/service]?
- How long have you been using [product/service]?
- Where did you purchase or order [product/service]?
- How often do you use [product/service]?
- On a 5-point scale, please rate your satisfaction with [product/service].
- Please rate the overall quality of [product/service]:
- Very low
- Please rate the following aspects of choosing [product/service] in terms of importance (1 not important at all, 5 very important)
- Would you recommend [product/service] to others?
- What do you like/dislike the most about our [product/service]?
By using a template, you can develop a structured and sequential set of questions for conducting various marketing surveys and gathering information from respondents. Dialog scripts make it easy to organize and manage the survey process, ensuring the accuracy of the collected data.
Why order marketing research from Global Bilgi?
Marketing research is an indispensable tool for studying the market to launch a new product or brand presentation, evaluate demand, expectations, and preferences of your target audience, understand attitudes toward your products and services, monitor the competitive environment, adjust pricing policies, develop a development strategy, and achieve other tasks vital for the successful operation and development of a company. Marketing research helps optimize business processes, navigate a company out of a crisis, increase sales, and achieve success even in the face of the most intense competition.
One of the most effective, operational, and economical tools for conducting marketing research is telephone marketing surveys. Using our in-house call center, we conduct telephone marketing surveys and Computer Assisted Telephone Interviewing (CATI). The advantages of marketing research at Global Bilgi include:
- Development of professional survey tools.
- Experience and qualification of operators.
- Operational data collection (ability to connect a large number of operators).
- Interview control (segmentary or randomized).
Expertise of the research agency in interpreting results and developing an analytical report.
We conduct marketing surveys of existing customers to determine customer loyalty, industry marketing research, Mystery Calling, and unique opportunities for surveys of company representatives (B2B segment).
To order marketing research or get a quote, contact our managers. We are always happy to help!