Why measure customer satisfaction?


Most, if not all companies measure customer satisfaction in one way or another. The question is why do they do it? The easy answer is because they want to make sure their customers are happy enough to buy from them again and besides, everyone else is doing it!

There’s got to be more to it right? Let’s take a look beyond the obvious answers and really see why companies measure customer satisfaction.

Why oh why?

If we look at the best customer satisfaction programs they are lead by businesses that put the customer first. Customer centric organizations view satisfaction measurement as a means rather than an end. It’s a vital piece that goes towards continuous improvement and part of the toolbox in gaining a total picture of customers.

Here is our list of why businesses should be constantly monitoring satisfaction, and what can be gained from doing so:

  • Efficiency
    When a business understands how satisfied its customers are and why, they can focus time and resources in the most efficient manner.
  • Reliability
    The only real way to get to customers true feelings is through independent anonymous surveys. Without surveying a customer base it has been found that only 4% of dissatisfied  customers will complain. The rest never complain and most likely won’t do business with that company again.
  • Loyalty
    Customer satisfaction is the best indicator of how likely a customer will make a purchase in the future. Ensuring that a client is satisfied with every point of interaction is a process that leads to loyalty down the road.


  • Comparison
    By continually monitoring satisfaction, businesses are able to compare results over time to competitors, against industry standards, by locations and understand what works and what doesn’t. This is called benchmarking and must be done to ensure long term success.
  • Increase Retention/Reduce Churn
    The number one reason for churn is not price, it’s poor customer service. By measuring and tracking customer satisfaction organizations can put new processes in place to increase the overall quality of customer satisfaction.
  • Cost Effective
    It is 6-7 times more expensive to acquire a new customer than it is to keep a current one. Therefore ensuring high levels of customer satisfaction lowers acquisition costs and frees up resources once spent on customer acquisition.


  • Increase Lifetime Value
    Satisfied customers stay with businesses longer purchasing more from that business. What may not be obvious to many organizations is what the difference between “satisfied” and “very satisfied” can mean for their business: Xerox found that customers who rated them a 5 instead of a 4 on a 5-point satisfaction scale were SIX TIMES more likely to buy more products! The Harvard Business Review is quoted as saying “The gulf between satisfied customers and completely satisfied customers can swallow a business.”

The Bottom Line

Whether your business has millions of customers or hundreds, keeping a vigilant watch over customer satisfaction means the difference between success and failure. The top companies operate from a customer centric point of view knowing that customer satisfaction research provides an integral piece to the profitability, efficiency and overall fate of their organizations.

If you have questions about your current customer satisfaction strategies or are curious about implementation, give Big Buck Research & Analytics a call. We build research tools, gather results, and team with our clients to strategize in order to meet needs and build long term very satisfied customer bases.

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Read 75 customer service facts and quotes http://www.helpscout.net/75-customer-service-facts-quotes-statistics/

Read Measuring and Managing Customer Satisfaction  http://www.qualitydigest.com/magazine/2000/sep/article/measuring-and-managing-customer-satisfaction.html#

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