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Why you should conduct customer satisfaction surveys?

There are several good reasons to conduct a Customer Satisfaction Survey (CSS), and we examine them in this article.
Billede af Per Mangaard Jørgensen

Per Mangaard Jørgensen

Does the situation exist where the honest opinion of customers will not be an advantage to know when running a business or managing an organization? 

No? 

All employees – from the factory floor to the management corridor – will unequivocally be best served by knowing how customers perceive the company. With customer feedback, you can get an indication of whether customers are turning their backs on you and how they perceive the company’s services and/or products.  

There are several good reasons why you should conduct a Customer Satisfaction Survey. We give four strong arguments below. 

What is a Customer Satisfaction Survey?

A Customer Satisfaction Survey (CSS) is a survey that uncovers customers’ perception of your organization or company.  

The overall goal of the Customer Satisfaction Survey is to create the basis for increasing customer satisfaction and retaining customers. 

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1. Supports business growth and performance

Would it not be a pity if the company's growth journey had to be slowed down, because choices are made that run counter to or partly against the wishes of customers? In companies with many transactions and customers spread across the business, it is essential to have your finger on the pulse. 

Customer satisfaction surveys provide insight into what your strengths are and where you need to improve. The insights from the survey among the customers provide the opportunity to monitor whether you are providing a satisfactory service and advice to your customers. By getting direct feedback on the customer’s experience of the so-called ”touch points” with the company, you get the opportunity to correct errors and flaws. 

 

Touch points mark the points where a customer has direct contact with your company. The contact points can be in both physical and digital form. 

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2. Supports management's decision-making basis

Customer satisfaction surveys are a good tool for setting up/following up on goals, prioritizing resources and selecting key focus areas. Management can make better decisions based on facts. 

Based on customer feedback, action plans can be drawn up and communicated to relevant employees, and a system can be developed so that feedback from dissatisfied customers is handled immediately. 

This allows negative customer feedback to be picked up quickly and the individual customer can be contacted in order to deal with the customer’s dissatisfaction. 

3. Strengthens the company's image

Customer satisfaction surveys strengthen the company’s image as they show that you take your customers seriously. At the same time, the marketing task is much easier when the marketing or communications department makes an effort to improve the customer experience and image of the company.  

By analyzing the company’s image in a Customer Satisfaction Survey, you also ensure that the company’s communication accords with the image the company has with the consumers. 

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4. Churn can be turned around using data and customers retained

It is much cheaper and easier to retain existing customers than to attract new ones. 

Therefore, it is worthwhile working on customer retention. If you conduct a Customer Satisfaction Survey, you can get an indication of whether customers are turning their backs on you. 

In this way, you can get an overview of the actual risk of customer churn, while at the same time identifying the causes of the current churn, so you can do something about the churn rate in the future. Churn rate means the percentage of a customer base that has chosen to terminate the relationship with the company during a given period. 

With knowledge gained from the Customer Satisfaction Survey, you have a solid basis for following up on specific risk customers and ensuring that they stay in store. 

What is measured in a Customer Satisfaction Survey?

A Customer Satisfaction Survey measures how satisfied a company’s customers are. Customer satisfaction can be broken down into specific focus areas you survey satisfaction on, which are supposed to have a major impact on the overall satisfaction of customers. 

Typically, measuring loyalty is also part of a CSS. Loyalty is measured by the proportion of customers who would recommend the company to others.  
 
There is a connection between customer satisfaction and customer loyalty – however, a customer can be satisfied with the company without necessarily recommending it to others. 

Per Mangaard Jørgensen

Kundeansvarlig, Medlemsorganisationer

Xact By Rambøll

M +45 51 61 78 82

pemj@ramboll.com

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