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Customer Satisfaction, the Untapped Marketing Metric

Customer Experience

Did you know that customer satisfaction is one of the most powerful marketing metrics out there? Don’t worry if you didn’t—most marketing professionals underestimate its awesome power. So, allow me to lift the vail from your sheltered eyes and show you that a metric often thought to be a one note song is really a symphony of marketing potential. Bold statement, but kind of true.

If you think customer satisfaction is merely about whether or not your company is doing a good job, you have much to learn, young padawan.

First off though, you need to know that the best way to measure customer satisfaction is to ask your customers if they’d recommend your product or service to a friend. On a 10-point scale, only those who respond with a 9 or 10, for definitely recommend, are highly satisfied.

With that quick tip out of the way, it’s time for the marketing benefit.

Compare your customer satisfaction data with customer data from other areas of your business. You might be surprised to discover what the true strengths and weaknesses of your business actually are.

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Customer Satisfaction, the Untapped Marketing Metric image Blue Yellow Smilies Customer Satisfaction 300x225As an example, a major automaker’s marketing department wanted to compare their customers’ satisfaction level with their propensity to repurchase. In the process, they examined many additional attributes, but were surprised to uncover that customers who had technical problems with their cars showed the highest customer satisfaction level and thus a very high propensity to repurchase. Why? Because this particular automaker had excellent customer service that improved loyalty.

The automaker had unintentionally idenfied a marketable business strength—a differentiator from its competition.

Moral of the story? Customer satisfaction is not simply a method of measuring how you’re doing; it’s a valuable piece of data that can, nay, should be used to identify opportunities to improve your marketing. Use customer satisfaction to identify your strengths and then hurry up and start marketing them!

Comments on this Article: 2

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  1. NGayanP says:

    Customer satisfaction / loyalty aren’t enough for a business

    Why?; Many business strive for are increased growth, sales and profits. Let’s say that your current customers are satisfied and give you a 10 – that doesn’t necessarily guarantee future growth of any new customers.

    The Harvard Business Review run an article last year about the “Wallet Allocation Rule”; According to the article, what is important for any business is the “share of wallet”? What is it?

    Let me quote HBRs definition “This is the percentage of a customer’s spending within a category that’s captured by a given brand, or store or firm. Customers may be very satisfied with your brand and happily recommend it to others—but if they like your competitors just as much (or more), you’re losing sales. Making changes to increase satisfaction won’t necessarily help”.

    What should you do? Understand who are your competitors, and analyse what your customers like about them and improve on those features – The aim is to get the maximum “share of wallet” of the entire market – because if there are 2 competitors, and both have 50% of the consumers, it means that your potential sales is half what it could be – thus the aim should be to maintain your current customers and attract your competitors customers as well.

    Online Sources:
    -HBR; http://hbr.org/2011/10/customer-loyalty-isnt-enough-grow-your-share-of-wallet/ar/1

    • CJ Forse says:

      Definitely familar with share of wallet and have no arguments there. With a more macro view of business, share of wallet makes perfect sense. I tend to write on a more micro level for marketers and hope this particularly brief article merely gives readers a little food for thought on how to start using customer satisfaction a little more analytically to create effective messaging. Love the HBR article as a follow-up read though—thanks for sharing!

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