According to ChannelE2E, the global market for Managed Service Providers (MSPs) is expected to reach $229.59 billion in 2020. That’s a lot of competition, as well as a lot of opportunity. Below, we discuss how to attract and retain your customers with the power of CSAT, and why great customer service could be the selling-point that sets your business apart from the crowd.
The real value of customer satisfaction
You might already be familiar with the most common metrics used to track customer satisfaction. They are:
- Net Promoter Score (NPS)
- Customer Effort Score (CES)
- Customer Satisfaction Score (CSAT)
But which one matters most and why?
The Net Promoter Score (NPS)
The Net Promoter Score (NPS) answers the question:
“Would you recommend this company?”
Knowing whether your customers would recommend you to their colleagues is a good way to gauge customer loyalty, but it’s only one step on the way to determining their overall satisfaction. It tells you “how” they feel but not “why” they feel the way they do.
The Customer Effort Score (CES)
The Customer Effort Score (CES) answers the question:
“How easy was it to resolve your complaint?”
According to the Harvard Business Review, reducing customer effort is becoming the most crucial factor in determining customer behavior. Put simply, resolving customer complaints quickly and efficiently, may sometimes matter more than the overall quality of your product or service.
The Customer Satisfaction Score (CSAT)
The Customer Satisfaction Score (CSAT) is a product of both the NPS and CES, and it answers the most important question of all:
“How satisfied are you with your customer experience?”
A good CSAT score implies high customer loyalty and low customer effort. It is an extremely useful metric, one that many companies strongly consider before choosing to do business. And if your business relies on word of mouth (and all businesses do), then your CSAT score is your secret weapon to keeping your customers loyal.
CSAT and sales figures
Loyal customers are more easily convinced to try new products and services, and are willing to spend more for them when they do. In fact, Harvard Business Review writes that an increase of 5% in customer loyalty can increase profitability by 25-95%.
That’s a big return on a small investment, and it begins with keeping your customers satisfied. By increasing your customer satisfaction score, you not only see an immediate increase in sales, but also a lower cost of account management.
CSAT and cost reduction
Did you know, it costs more to attract a new customer than it does to keep an existing one?
Think about all of the costs associated with finding and nurturing new leads, including:
• Marketing campaigns
• Sales teams
• Onboarding efforts
CSAT and brand differentiation
Many MSPs pitch themselves as silent partners, connecting companies and customers without ever being seen. As a result, they tend to focus more attention on sales than on brand differentiation. That may have worked in the past, but it may not work for much longer.
According to “Customers 2020,” a B2B consumer study by Walker, customer experience will soon overtake price and product as a key brand differentiator. In fact, some argue that we’re already there.
Alex Allwood, CEO of The Holla Agency and author of “Customer Experience is the Brand,” says:
“Today’s marketplace has become very competitive and commoditized. There is little differentiation between one brand and the next.
“If you are already competing on price, technology or innovation,” she continues. “What is going to differentiate you from your competitors? What is going to be your point of difference?”
The simple fact is, having the “best” product or service is meaningless, unless you are providing the “best” customer experience.
The future success of your business depends on exceeding your customer’s expectations. By focusing more attention on customer satisfaction scores, and widening the scope of your customer feedback, you can reduce customer churn, increase ROI, and give your brand a competitive advantage.
For more insights on what customer satisfaction can do for your business, take a minute to download “10 ways customer satisfaction is affecting your bottom line,” and learn how to succeed by keeping your customers happy.