How to Measure Customer Satisfaction

How happy are your customers? If you don't know the answer to that question then it might be time for some additional research. The best way to expand your company is to make sure you're giving your customers what they want.

The only way to find that out is to gauge their level of satisfaction. Professor Scott Smith, the co-founder of Qualtrics, has come up with a simple and direct approach to determining customer satisfaction.

Here are the four fundamental measurements he suggests you apply to your business:

Perceived Quality

You can ask your customers to fill out a survey card and leave it at your store or answer a quick online survey. Either way, the first question to ask is a variation on the theme of "How was your experience with our company?" Right off the bat you're going to know how the customer feels especially if you ascribe some sort of rating like a scale of 1 to 10 or adverbs like "great, good, so-so or bad." This will become your baseline for customer satisfaction.

The Loyalty Measurement

Every business depends on loyal customers coming back to make additional purchases. The hope is that those customers will take the next step and recommend that company to someone else. With the loyalty measurement you'll be asking, "Would you recommend our company?" It's a yes or no question that you can break down to degrees such as "very likely, somewhat likely, etc." It's a terrific snapshot to judge how many referrals your customers can bring in. That might inspire you to take it a step further with some sort of incentive program.

Attribution Satisfaction

These are the survey questions you'll be asking that get into the specific of a particular product. In other words, you want to find out what attracted a customer to that product. Was it the price? Availability of sizes? Ease of shipping? Colour? There could be many factors that went into the purchase. Finding those out will help support future product launches and sales campaigns.

Intention to Repurchase

There are some products that are geared to be bought only once while others require frequent repurchasing. Either way, you want to know if your customer was happy enough with your business that they would do it all over again. A customer with a positive shopping experience is more likely to buy that product again, perhaps as a gift. At the very least they'll be recommending your company to others.

Take note that all the positive information you gather in these types of surveys can be used in your own marketing campaigns. If you can have a 100% customer approval rating why wouldn't you share that with the world?

Of course, you won't know any of this unless you ask!

Why Building an Email List is Important for Your Business

It’s as simple as this: If you want to be a successful marketer these days, you need a solid email list. Having an email list helps ensure that your message will be in your customers’ inbox and will be welcomed there.

When you've signed up for email from a specific company you're opting in. In other words, you want those newsletters, special promotions or coupons. Every business that has an online presence should have an email list. Truth be told, building an email list is a gold mine for your business.

There are a few reasons as to why building your email list is a good idea:

Building customer loyalty.

If a customer has signed up for your company's email then they are a willing reader. With every email you send out you have the chance to build up that customer loyalty because you'll be treating them to an "insider's" perspective to your business. They want the info, so let them have it! A customer who has already made a purchase through your web portal will know how easy it is to get what they want. When you send that customer information about a new product or a special promotion they'll be inclined to shop again. Just make sure you've got strong call-to-actions in your email that will make them want to click to your site.

Affordable marketing.

In terms of marketing cost effectiveness, you simply can't beat emails. The cost of using autoresponders are much cheaper than they used to be a few years ago… and for less than $10/month you can create a marketing system that will reap dividends! With one click you could reach thousands of customers instantly. Remember these are customers who have asked for you to keep them informed. They want to learn more about your company and receive your promotions - can you say that about direct mail marketing? You can't! Even a small percentage of sales that would be generated by an email blast would pay for your marketing campaign many times over.

Personal touch.

It’s casual and friendly — a great way to build trust with people. As part of your overall online marketing strategy you should set up Facebook and Twitter accounts to build out your social media network. However, those sites require a kind of active participation from your audience without a guarantee of viewing your content. In other words, if a customer only checks their Facebook page once or twice a day they might miss your update in their newsfeed. On the other hand, they're going to open every email you send them because they are checking their "inbox" throughout the day. This includes checking on mobile devices. Additionally, there are no other distractions with reading your email. Facebook and Twitter can be great marketing tools but you'll be competing for attention. With an email you've got a one-on-one contact that is priceless.

Targeted offerings bring extra revenue from your list.

The majority of your customers will appreciate you keeping their private information private. That doesn't mean you can't share affiliate products with your customers. Suppose you're selling personalized coffee mugs. It would stand to reason that someone selling gourmet coffee would appeal to your email list. The key is to be smart with your affiliate offers. If you're selling mugs you shouldn't offer a great deal on tires. Don't give a customer an excuse to opt out of their opt in. Depending on the size of your email list, you could offer it for sale to other companies. Just make sure you haven't made the claim that you wouldn't do that!

Bottom line: Build your email list and it will pay for itself tenfold! 

Drive Traffic To Your Site with Give Aways

Let’s face it; we all love to get free stuff. Whether it’s a T-shirt, a delicious dessert or advice - as long as it’s free, we’re going to be smiling. Now flip that around to the business who is handing out that free stuff and think about what they are getting in return. They are generating a lot of “smiles.” That’s a proactive stance towards building a more robust business and branding. Keep in mind that adopting this approach doesn’t mean you have to give away the store. Instead, you’re looking for ways to drive traffic to your site through enticements which can ultimately lead to other business.

By providing your customer with free advice, product or service, you’re ultimately building customer loyalty. You can create a blog which provides great advice on solving your customers’ pains. This makes you a resource, giving your prospects plenty of reasons to return to your site. This in turn could make them more inclined to follow your advertisers to their websites or purchase what you’re selling. Think of the “freebie” as the bait to hook a new customer.

Here are some more reasons why providing free stuff helps your business:

1)      Providing free stuff is good PR: News travels fast. By offering free stuff, your prospects will start talking about it amongst their friends and colleagues, helping you spread the message organically. People love to receive free stuff, and they’re more willing to take action if their friend recommends it to them.   

2)      You minimize risk for your prospects: When you offer a free trial period, a free e-book filled with great information, or even a free item, you are reducing the perceived risk in purchasing your product or service. By taking away the risk, you are providing your prospects with the opportunity to have a positive experience with your brand and make it easier to purchase later. 

3)      Build customer loyalty: Everyone loves to get something for free, especially when there are no strings attached.  Customers remember how they got something special and will associate it with your brand. This builds loyalty and positions your brand as someone that is always looking out for the customer. 

Free stuff doesn’t just have to be products or services. There are examples of donations, contests, free food and even a dream job!  Giving away free items or trial offers is a win-win strategy for both you and your customers. If done right, offering a free incentive will pay your company back in spades.