7 important Customer satisfaction metrics to track in 2022.
A smart way to analyze your customer feedback in SaaS.
What is customer experience?
Customer satisfaction means how well you handle the customer feedback of your product and service-based business. Satisfying the expectations of your customer adds to the quality of your business.
Don’t reinvent the wheel. Focus on winning one customer at a time. Be honest and sincere. Do what’s right. There’s nothing magical about this. That’s been my guiding principle. To make it work, you have to live it every day. Make it your mindset.” — Robert Spector
It’s how Cambridge Dictionary defines it:
“ A measure of how happy customers feel when they do business with a company.”
Positive feedback and reviews increase customer lifetime cost, make them your retaining buyers, 10X ROI, and double revenue by creating an authority.
80% of companies worldwide use customer metrics to analyze the user experience and tweak it for the future.
Sometimes, the happy faces of your customers are not enough to check your customer satisfaction metrics. Because data and statistics define an exact customer-centric algorithm for practical understanding.
Use surveys to collect user experience and data is used to predict customer satisfaction when they interact with your product. You can turn boring data into insights by changing your mindset, creating cross-functional teams, improving accuracy through data, use past cases to improve current growth.
Successful SaaS companies are adapting new ideas and retention tricks. 40 B2B SaaS Public companies with 120% of NRR ( Net Retention Rates) also have a great number of multiples.
How to conduct customer satisfaction surveys: Learn to develop a customer survey.
- Define your target group.
- Use advanced tools.
- Design the questions.
- Apply best practices.
- Collect that data to correct your mistakes.
- Uplift your user experience with data.
Here are some influential customer satisfaction angles to track in 2022.
- Net promoter score (NPS): NPS is about how many past clients suggest your business to other people after the positive result he gets. Because referral and word of mouth is the stronger marketing tactic. It’s about how people feel after hearing your brand name.
NPS tracks loyalty, perception, and buyers' thoughts by deciding your ROI. You can conclude the NPS by conducting email surveys, chatbot inquiries, and feedback form surveys.
It doesn’t reveal why behind a score but gives a high level of indication about your running marketing.
2. Customer effort score (CES): CES concludes efforts made by customers to communicate with your business. It depends on how easily customers gets to use your business because difficulty arises in client loss. Ex: When a customer finds it difficult to buy from your app.
How is CES calculated?
Customer Effort Score = Sum of All scores / Total Number Of Respondents.
So, keep your websites, apps, and customer care smooth so that people love to use them again. This will make your product management boost like a maestro.
3. Customer satisfaction score (CSS): CSS defines how much % of past customers are happy with your previous way of service. As per research, 52% of buyers take up a product again after a positive experience.
How to calculate CSS= Sum of All Ratings/ Total Number of respondents.
You can analyze the work of your agents plus customer interaction after taking your service or product. This guides the management team to train their team for a better experience next time. Listen to what your customers are saying to gain profits.
4. Customer Acquisition cost (CAC): CAC is for digital companies and web-based marketing that wants long-lasting customers on their platform. It’s the cost of persuading a targeted lead to buy from your business.
CAC Includes = Publishing cost+Advertising Costs, Technical costs, and marketing costs involved to make that product reach its customer easily.
Investors use CAC to get startups' profit scale data, marketing to analyze their ROI, and companies to track their growth by convincing people.
How much a company earns revenue with the cost they’ve spent to acquire people is actually the meaning of CAC.
5 . Customer Churn: Churn Rate can be estimated by calculating the number of customers lost per year because every buyer can’t be loyal forever. People evolve with changing situations.
Calculate Churn Rate: Users at beginning of period-users at end of period / Users at beginning of the period.
It helps you find how your business showing up in the market and what are areas of improvement needed. Because of your customers' experience, build your business authority.
6. NRR ( Net Revenue Retention): Your SaaS product retains revenue from current customers in an exact time period, including Downgrades, cancellations, and expansion revenue (X-sell & Upsell).
NRR> 100%≥ growth.
7. MRR (Monthly Recurring Revenue): Revenue your SaaS tool gained from subscriptions per month. Got affected by downgrades, churn, and upgrades. It helps to discover forecasts, future revenue, and trends. Maintaining a positive MRR is a must for annual profits.
Bottom Lines:
The most precious thing in a business is to apply what your customers want and how they’re reacting. Maintain the data and analyze the survey to make changes to your business service.
SaaS ideas are whole online, so they require a data-centric and smooth response from their audience. B2B is focused on its target audience and only work for their welfare. Getting exact statistics about the customer is a necessity.
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