About the author: Deb Mukherjee is a SaaS marketer with 5+ years of working with companies across the globe. He has consulted over 40 companies to date and is now heading the marketing function at DelightChat, a customer support software for ecommerce & DTC companies. When he’s not working, you can find him watching the latest Anime or writing about SaaS & DTC marketing on debgotwired.com.
In today’s day and age, customer experience is more important than ever. There are hundreds of products in every category, and only a few stand out. There are few ways you can grab that spotlight, i.e., great product, excellent customer experience, or a brilliant story.
You can create the best product and have a wholesome background story, but you’ll still be judged on how you made the customer feel when they bought from your store. Customer experience is the key to a successful ecommerce business, and customer service forms an integral part of it.
But how do you measure customer service? How do you know if your customers are genuinely happy with your products? The answer is CSAT score or Customer Satisfaction score. Let’s see what CSAT is, why ecommerce store owners must measure it, and how to improve the CSAT score for a better customer experience.
What is Customer Satisfaction (aka CSAT)?
CSAT is one of the top KPIs an ecommerce business should measure. When you measure CSAT, you effectively measure customer happiness. It’s generally based on a small survey that customers fill out after resolving a customer’s query.
Even though there can be different types of surveys, at the heart of it, it asks the customer to rate your service on a scale of good to bad.
For example, when a customer support rep resolves your query, a small survey pops-up asking, ‘how did we do?’ with five emojis as options with 😞 as the worst and 😃 as the best.
How do you calculate the CSAT score for ecommerce?
You can calculate the CSAT percentage by dividing all the positive responses (from surveys) by the total number of responses and multiplying by 100.
CSAT % = (# of positive responses / total # of responses) x 100
For example, if you have 37 positive responses out of 60 responses, your CSAT score would be,
CSAT = (37/60) x 100 = 61.66%
Here’s a fun fact: According to this report, ecommerce businesses prefer to have a CSAT score of 80% or above.
Why is CSAT so crucial in ecommerce?
In recent years, customer satisfaction has become a priority for most ecommerce brands. With giants like Amazon dominating the market, customer experience can be a key differentiating factor for brands to thrive.
If you’re still second-guessing the importance of CSAT, here are a few more reasons why you must prioritize CSAT.
1. Your customers aren’t loyal enough
Research suggests that 84 percent of consumers consider customer service a key factor when deciding whether to purchase. Take a second and think about it.
If your customer service is faulty in any way, the customers might not even buy from you no matter how good your product is.
A customer satisfaction survey can find the gaps in customer service and tell you exactly where you can improve.
2. It’s indirectly tied to growth in revenue (or loss of it)
Let’s say you’re looking to buy a recliner. You research five different websites, read all the positive and negative reviews, and finally, settle on Brand X.
Then you show this to your friend. She says that you should go with Brand Y because the product quality is the same, but Brand Y’s customer service is fantastic.
I can almost guarantee that you will go with Brand Y. Conclusion: Customer service influences revenue. In this case, Brand X needs to check its CSAT score and identify areas of improvement.
3. Brand loyalty depends on customer happiness
A whopping 95 percent of consumers say that customer service is essential for brand loyalty. It is so important that 60 percent of consumers desert a brand and switch to a rival company because of poor customer service.
The numbers speak for themselves. If your customer service is not top-notch, you risk losing customers; even the loyal ones. At the same time, if your customer service stands out, you can create brand advocates who will purchase from your brand and refer it to others.
If you fall in the former bucket, the good news; you can fix it with a simple customer satisfaction survey, analyze the gaps, and implement an excellent customer service strategy.
Battle-tested tactics to grow your CSAT score
By now, I hope that you understand the significance of customer satisfaction and why your ecommerce business needs to measure it. So, let’s look at some of the tactics you can employ to enhance your customer service experience and keep your customers happy at all times.
1. Reduce response time to customer queries
Let’s face it. We have an attention span of 8 seconds. This also means that most folks wouldn’t want to wait too long to get a response from customer service. The longer you make them wait for a response, The sooner they’d leave you, lowering your customer experience.
To avoid that, you can train your customer service team to respond within a designated time. Also, you can use chatbots to automate the answers to repetitive questions that your customers ask regularly. This way, your response time increases manifold, and so does your CSAT score.
2. Reduce the number of interactions for the customer
In a sea of options, customer expectations are at an all-time high. They don’t have the time nor the proclivity to reach out and solve their problems, let alone endless back-and-forth conversations with customer service.
Your job as an ecommerce business owner is to reduce the number of interactions you have to solve a customer’s query.
You can easily do that by providing a resolution in one or two messages or have an in-depth Help Center where you can list solutions to common problems (like figuring out the ETA for an order).
3. Use a live chat system on your site
It’s no secret that a live chat widget is quickly becoming a mandatory part of every website. It’s an incredible tool to collect leads & provide instant customer service. 44% of people surveyed said that having a live chat option while shopping online was one of the most critical features a company can offer.
Referring to our previous point, chatting with a person in real-time can help resolve a customer’s query in record time. It also eliminates the back and forth that happens over email or a phone call. This dramatically reduces your response time while increasing your CSAT score.
- 83% of people expect companies to respond to a social media question or complaint within a day.
- Nearly half of people expect a response within an hour.
- But 45% of brands took more than five days to respond to messages through their Facebook Pages!
- And 49% never get a response to a social media complaint at all.
There’s a massive opportunity for your brand here. You can be the brand to respond to your customers and solve the problem then and there. Don’t drag them to email or live chat support because that’s going to backfire. Needless to say, if you provide stellar customer service across social media and review sites (like TrustPilot), your CSAT score is bound to increase.
Convinced you need to prioritize CSAT?
If your brand is already delivering an excellent customer service experience, your CSAT score should be quite useful. You can measure it by deploying a small survey on channels where your customers are active. If that’s not the case, do go through this article and let me know if you have any questions in the comments below.