Speaker 1: Hello everyone, I'munal Mehta and welcome back to our channel Digi8.com. We are your digital aid and we provide free courses on the subjects of business and marketing. Let's start with how to measure your customer satisfaction level. Customer satisfaction is the sensation of pleasure that a consumer gets when they compare a product or service perceived performance to their expectations. A customer is dissatisfied if the experience he or she has with a product or service does not meet their expectation. If a product or service is able to exceed client's expectations, they are extremely delighted. But usually the customer is pleased or satisfied if the performance of the product meets their expectation. Moving on to a very famous case study of Amazon's one-click technology that got their customers delighted. Known as the one-click checkout, way back in early 1999, Amazon secured the one-click patent idea in September 1999. This concept was unearthed that customers could enter their shipping and payment information just once and then later anytime could simply click a button to buy something without having to re-enter the details. That was way back in 1999. This was a major breakthrough in the concept of hassle-free online shopping then. Amazon's proprietary one-click patent made it extremely famous and led on the path from being a bookseller to an e-commerce mammoth that we see today. The one-click technology was extremely valuable because it was refining customer experience in action. Ultimately, the patent expired on September 12, 2017 and was placed in public domain and is being used by other e-commerce companies. Moving on, a highly satisfied customer will do the following for you. First, continue purchasing more items as the firm introduces upgraded versions and new products. Next, be less sensitive to the price of the goods. Transactions can become routine over time, potentially costing less to an old and devoted client than a new one. Make less of an effort to compete with other companies. And finally, potential customers talk positively about the product and the firm, thus spreading good word of mouth publicity. Moving on to the aspect of monitoring satisfaction. Many firms attempt to assess their customer treatment. They are seeking for elements that influence a client's contentment. Smart firms take into custom comments in order to change their operations and marketing strategies in order to improve their sales. In order to have excellent sales, smart businesses make a point of monitoring customer satisfaction on a regular basis. Now, that is typically done through the following methods, such as checking regular repeat orders, referrals by one customer to another, customer satisfaction surveys or CSAT surveys, complaint trends, if there are any, mystery shopping, net promoter score, and customer effort score. We will take a stab at some of these in this video, starting with your net promoter score. Companies find out what customers think of them, good or bad, in between through something called as the net promoter score or NPS score. Customers, a single question has been asked, how likely is it that you would recommend this company or brand to a friend or colleague? Customers need to answer the question with numbers starting from 0 to 10. Higher the number, more satisfied the customers are and more admired the company is. Pretty straight forward. If the NPS is low, the company is headed for trouble. Friedrich Heil, the author, creator and business strategist, believes that one needs to ask, how likely are you to recommend us? Obviously, if you look at the figure, from 0 to 6, the customer will not recommend your product. From 7 to 8, you see a smiley that he or she is satisfied with the product. But when it comes to recommendation, it has to be either 9 or 10, where it is very likely that she or he may recommend your product. For instance, Apple scores very high on the net promoter score. According to NPS benchmarks, Apple's NPS score in 2022 was a whooping 72, which is extremely higher than the average NPS scores of other electronic companies in the industry. It is important to note that in 2007, it's NPS 58, then in 2016 and 2017, the score reached 72. Again, now the score is 72, one of the highest in the technology industry. Apple's revenue as of 2021 stood at a whooping $365.8 billion. Another way of monitoring satisfaction is looking at the customer effort score. Customer effort score refers to the amount of effort a customer needs to exert to get an issue or a problem solved, or maybe a product purchase returned or their questions answered. You can generally be measured in a single-item metric. The service generally asks a question like, how easy was it to interact with the company? Answers can range from a scale of very easy to very difficult. The belief system is that the customers will be more loyal to any service or product that will be easier to use and the queries are solved instantly. In fact, one of the hospitality major chains, that is Ritz Carlton, is ranks higher when it comes to the customer effort score or issues being resolved. Moving on to other methods of monitoring customer satisfaction. First one being CSAT, customer satisfaction score. CSAT surveys measure customer satisfaction with the product or service they receive from you. They can be expressed with a five or seven point scale or through binary yes or no answers. CSAT is different from net promoter score, which asks consumers to assess how they feel about a brand or whether they would recommend a brand. And finally is the time to resolution. Time to resolution is the mean length of time customer service staff takes to fix a problem. It is the time the staff takes to issue a ticket after a customer asks for it. TTR is measured in days or business hours. It is measured by summing up the total time taken to resolve all your issues. It is then divided by the total number of issues to find out if the firm is headed for trouble. So that's it folks. This brings an end to the topic and how do you measure the customer satisfaction level. These are the list of sources and links referred to for our content in the video. Thank you and stay tuned for more videos.