{"id":1952,"date":"2021-09-28T08:40:47","date_gmt":"2021-09-28T08:40:47","guid":{"rendered":"https:\/\/ec2-34-253-215-75.eu-west-1.compute.amazonaws.com\/?p=1952"},"modified":"2023-04-28T08:24:48","modified_gmt":"2023-04-28T08:24:48","slug":"how-to-measure-customer-satisfaction-a-guide-for-saas-brands","status":"publish","type":"post","link":"https:\/\/refiner.io\/blog\/how-to-measure-customer-satisfaction-a-guide-for-saas-brands\/","title":{"rendered":"How to Measure Customer Satisfaction: A Guide for SaaS Brands"},"content":{"rendered":"\n

Wondering whether customers love your product as much as you think? Looking for advice on how to measure customer satisfaction to find out once and for all?<\/p>\n\n\n\n

Did you know that 67% of customers<\/a> cite bad experiences as a reason for churn? Yet only 1 in 26 of unhappy customers complain and tell brands about their discontent. <\/p>\n\n\n\n

Crazy, huh? It means that customers, most likely, won\u2019t tell you they are not satisfied with your product or service.<\/p>\n\n\n\n

They\u2019ll simply leave. <\/p>\n\n\n\n

Luckily, there is a way to discover their sentiment before that happens. How? By measuring customer satisfaction.<\/p>\n\n\n\n

In this post, you\u2019ll learn how to measure customer satisfaction. In fact, you\u2019ll discover two ways to do so – one passive, another active. Then, I\u2019ll share a step-by-step guide to use the active process for measuring customer satisfaction.<\/p>\n\n\n\n

But let\u2019s start at the beginning, shall we?<\/p>\n\n\n\n\n\n

Why Measure Customer Satisfaction at All?<\/strong><\/h2>\n\n\n\n

1. Understand customers\u2019 needs and expectations<\/h3>\n\n\n\n

You know, measuring customer satisfaction is the best way to also understand their needs and expectations.<\/p>\n\n\n\n

Let\u2019s take an example of a successful SaaS to understand better – Notion. <\/em>This is a popular productivity app with over 4 million users. Ironically, at some point, the productivity app was super-slow by current standards, which attracted tweets like this:<\/p>\n\n\n

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\"Customer<\/figure><\/div>\n\n\n

Now, suppose Notion <\/em>wasn\u2019t actively measuring customer satisfaction (to act on the frustrating parts). In that case, a company like that (with 4 million+ users and a $2 billion valuation) could’ve easily thought, \u201cYup, we\u2019re on the right path. We will continue with our plan.\u201d without ever considering customers\u2019 actual needs.<\/p>\n\n\n\n

Instead, and obviously, Notion <\/em>considers customer feedback. For example, the tweets about speed issues often got replies like this: <\/p>\n\n\n

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\"Amazing
A reply by Ivan Zhao, the founder of Notion.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Eventually, the company fixed the speed issues, leading to a better customer experience:<\/p>\n\n\n

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\"Customer<\/figure><\/div>\n\n\n

2. Customer dissatisfaction = Low retention rate<\/h3>\n\n\n\n

For a SaaS business that uses a recurring revenue model, retention rate is the most important performance indicator (KPI). And retention rate entirely depends on customer\u2019s satisfaction with your product, pricing, and customer service.<\/p>\n\n\n\n

Don\u2019t believe me? Well, as it turns out, 1 in 3 customers<\/a> will leave a brand after just one bad experience, and 92% would completely abandon a company after a couple of negative interactions.\u00a0<\/p>\n\n\n\n

On the other hand, if you focus on customer satisfaction and retain even 5% more customers, you\u2019ll increase profits by 25% to 95%<\/a>.<\/p>\n\n\n\n

3. Customer dissatisfaction = Negative word of mouth<\/h3>\n\n\n\n

Even if you sell your SaaS for a one-time fee and can convince people to buy it, not caring about customer satisfaction leads to a business decline in the long term. <\/p>\n\n\n\n

For instance, dissatisfied customers may leave a negative review about your SaaS all over the internet (on G2, Capterra, TrustRadius, etc.). Plus, just like the Notion<\/em> example, they\u2019ll spread negative word of mouth through social media.<\/p>\n\n\n\n

Statistics<\/a> show users share their bad experiences with about 9-15 people. And it takes about 40 positive customer experiences to undo the damage done by 1 negative review.<\/p>\n\n\n\n

How To Measure Customer Satisfaction?<\/strong><\/h2>\n\n\n\n

Firstly, you can identify customer satisfaction levels using two ways:<\/p>\n\n\n\n

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  1. Passive<\/strong>: The passive way is to gather the data from anywhere and everywhere to then analyze it to kinda\/sorta understand customer happiness.<\/li>\n\n\n\n
  2. Active<\/strong>: The active way is to ask customers whether they like your product, service, or experience you provide. And if they don\u2019t, what exactly do they not like?<\/li>\n<\/ol>\n\n\n\n

    1. Analyze the data you have<\/h3>\n\n\n\n

    Only 1 in 26 unhappy customers complain. But though they don\u2019t give negative feedback directly, they leave clues. Here are a few ways to pick up those signals:<\/p>\n\n\n\n