Feature
The Gist
- Boosted results. Improved customer satisfaction leads to increased loyalty.
- Effective metrics. Regular feedback collection enhances service quality.
- Crucial strategy. Employee satisfaction indirectly impacts customer happiness.
There was a time when the cliche, “The customer is always right,” defined the essence of customer satisfaction. But this was never really true. Back when this expression was in vogue, consumers had far fewer choices than today so, ultimately, customer satisfaction wasn’t really a big concern.
The US auto industry of the late 1970s and ‘80s epitomized this reality. It turned out lousy, dangerous cars for years. This complete lack of concern for its customers’ satisfaction and well-being opened the door for foreign competitors from Japan and Europe to take over the top spots for quality and safety for decades to come.
Today, all of that has changed. Unsatisfied customers have seemingly unlimited choice and, even worse for vendors, unlimited and very public ways to express their displeasure.
What Is Customer Satisfaction Today?
"Customer satisfaction has changed over time,” said Alex McIntosh, CEO and co-founder of Thrive Natural Care, a regenerative skincare brand. “It used to mean a customer was happy with their purchase. Today, it is about the total experience from acquisition to post-purchase and repurchase.”
Customer satisfaction has become an all encompassing metric. It’s now a term used by marketing, public relations and customer service professionals to understand how their customers view the brand overall. It goes far beyond a single interaction or transaction. According to the chatbot maker Reve Chat, customer satisfaction “is defined as how happy your customers are using your company’s products or services. It can be also reflected in how they rate your business and how they refer it to their friends or families.”
Related Article: How Do We Measure the Happy Customer?
How Customer Satisfaction Is Measured
There are a lot of ways to measure customer satisfaction. Net promoter score (NPS), for example, is often held out as the gold standard for whether or not customers value an organization’s products or services.
Some companies look at retention rates and repeat purchases, while others use surveys, social media tracking and interactions and online reviews to build up a picture of what their customers think. Organizations also use the customer satisfaction score (CSAT) and customer effort score (CES) to understand how their customers feel, according to Reve Chat.
To track his customer’s happiness, McIntosh looks at repurchase rates and average order value. The higher the average order, the greater the customer satisfaction. He also measures less quantifiable metrics such as review frequency, average rating and other social media-based scores.
“Because we are taking an omnichannel approach to our marketing and sales, we also know that all of these metrics need to be looked at as a whole, but additionally broken down into their own analysis,” he said. “The more we are able to understand, the better we can be at driving overall satisfaction."
Related Article: Top Customer Experience Metrics That Impact Internal Operations
Why Customer Satisfaction Is important
Customer satisfaction is a key component of increasing revenues, profits and reducing churn. Yet companies seem to be failing when it comes to improving this all-important metric. Customer satisfaction is at its lowest levels in two decades, according to the American Customer Satisfaction Index.
According to the jobs site Indeed, improving customer satisfaction levels can help a business build business word of mouth and positive reviews. Managed correctly, this, in turn, can lead to an increase in profits as well as generate greater brand loyalty. It can also reduce new customer acquisition costs.
“Customer satisfaction is pivotal as it directly impacts your bottom line,” said Nik Nicholas, the founder and CEO of Covelent, a UK-based data consultancy. “Furthermore, in an increasingly competitive business environment, customer satisfaction serves as a key differentiator, driving your business's reputation and market position."
Related Article: What Is Customer Satisfaction Score (CSAT)?
10 Ways to Increase Customer Satisfaction
The easiest and fastest way to increase customer satisfaction over time is to provide a good service or product at a fair price so customers feel like they are getting value from the interactions they have with your organization.
While value and quality can be viewed as table-stakes for customer satisfaction (no one likes to feel ripped off), there are many process-oriented things the organizations can do that will have a positive impact on customer satisfaction.
While this list is not exhaustive, it is a great place to start:
1. Offer omnichannel support. Omnichannel support increases customer satisfaction by giving customers the option to initiate and receive support from your organization via their preferred channel.
2. Empower CSRs. Back up omnichannel support with customer service representatives who are well-trained, empathetic, and empowered to answer customer questions and make decisions on the spot to solve problems. For example, The Ritz-Carlton has for years given its employees permission to spend up to $2,000 per day to delight their guests.
3. Act on negative reviews and customer complaints. When customers complain, listen and act. For example, if they complain on social media or a review site like Yelp, respond to their complaint in a timely manner. The challenge for most organizations is most customers don’t complain. They just move on to another provider.
At lawncare provider GreenPal, the company actively collects feedback through customer surveys and reviews to understand their customers’ experiences better.
“One example of how we acted on customer feedback was when we received multiple requests for enhanced scheduling flexibility,” said co-founder Gene Caballero. “Taking this feedback into account, we introduced a new feature that allows customers to schedule their lawn care services at their preferred date and time. This enhancement has resulted in improved customer satisfaction by providing greater convenience and control.”
4. Measure your customer satisfaction regularly. Once you’ve collected enough information, put in the time to understand what the data says. If you see something you can act on quickly, do so. Don’t let problems fester until the impact to your brand becomes insurmountable.
5. Reduce wait times. This one’s pretty straightforward. Basically, nobody likes to wait. This goes doubly true in today's world where what used to take days or even weeks can be done in seconds online. Also, people are busier than ever and, therefore, less patient than ever with slow service.
Webinar
Sep
25
CMS Briefing: A Live Look at What’s Next in AI-Driven Platforms
Learn how leading organizations are using AI‑driven tools to publish faster, personalize smarter and stay secure.
Register
Webinar
Sep
25
Call Spoofing Trends Financial Institutions Can't Afford to Ignore
Don't let robocalls sabotage your customer relationships. Learn how to secure your voice channel.
Register
Webinar
On demand
Ready or Not: How Data-First Organizations Are Unlocking Agentforce Potential
Learn how to cut through the noise, activate Agentforce and build a Salesforce AI strategy that actually delivers.
Watch Now
Webinar
On demand
CX Reality Check: What Your Customers Are Really Thinking
Register now and get the insights you need to not just meet rising expectations, but exceed them.
Watch Now
Webinar
On demand
Content Leaders Collective: What a Good CCMS Actually Looks Like
Discover how content leaders transform clunky systems into growth engines — and why your competitors are ahead.
Watch Now
Webinar
On demand
From Hype to High-Impact CX Strategies That Actually Scale
Turn buzzworthy AI and outsourcing trends into measurable CX wins with fresh 2025 data.
Watch Now
6. Offer easy, simple refunds. Most retailers can probably blame Amazon for this one but to the company's credit it made sending items back as easy (if not easier) than buying them — all with no questions asked. Depending on the product or service obviously this isn't always possible. Whenever it is possible, make sure your refund process favors the customer and not the company.
7. Offer free shipping. Once again Amazon really moved the needle on free shipping. This goes for free shipping on returns as well. Now most organizations offer some form of it typically with some dollar value attached. It is a great perk and people love it.
8. Prioritize employee satisfaction. Well this one isn't directly related to customer service. It goes without saying that if your employees are unhappy then they are going to be less willing to make your customers happy.
9. Engage in random acts of kindness. Tori Gerbig, co-founder and CEO of Pink Lily, a boutique clothing site for women, periodically visits the company’s warehouse to select orders to send to customers for free as a gesture of appreciation.
“These random acts of kindness create additional moments of surprise and delight, reinforcing the brand’s commitment to building genuine connections and exceeding customer expectations,” said Chris Gerbig, Pink Lily’s co-founder and president.
10. Be honest and own your mistakes. Everybody makes mistakes and companies and organizations are simply an extension of the people who work there and run them. This means they are going to mess up from time to time. When mistakes do happen, it's always best to own up to them and do your best to remedy the situation as quickly as possible.
“By taking responsibility, you show that you’re authentic, you genuinely care about your customers' experience with your business, and you’ll generate trust with your audience for being honest,” said Flori Needle, a senior content manager at Hubspot.
According to Salesforce research, 78% of consumers will do business with a company again if they own their mistakes and provide excellent customer service.
“When it comes to customer service and engagement, Pink Lily connects with the customer throughout the entire journey to make it a rewarding shopping experience,” said Chris Gerbig. “Whether it's using SMS to alert customers of their shipment and provide tracking, or allowing them to help the buyers make inventory purchase decisions on Instagram, Pink Lily's [customer service] agents go above and beyond to improve their customers’ experience.
