5 Ways Customer Satisfaction Correlates with Business Results

customer satisfaction

Last Updated: February 2024

Whether you are a new e-commerce brand or have a few years of experience to your name, one of the tried and tested ways you can boost sales is by providing great customer service. Typically, business owners have their hands full taking care of everything from sourcing products to handling marketing. It is easy for them to lose touch with the real needs of their customers. However, as multiple surveys have shown, customer satisfaction and a positive customer experience can put your business on the fast lane to growth and build top-of-mind brand recall.

With the use of online feedback forms and social listening, small businesses can leverage their strengths – a personal touch and greater flexibility – to deliver greater value to customers. It can help you avoid wasting resources and grow average order volumes. C-Sat scores reveal customer opinions on the shopping experience and store user-friendliness, providing valuable insights for improvement.

While efficiency metrics like handle time, conversion rate, and first contact resolution are important, it is C-Sat that determines whether the return on investment will be worth your efforts. A study by Bain and Company revealed acquiring a new customer costs 5-25% more than retaining an existing one.
 At a time of shrinking budgets and slowing demand, a strong customer focus helps stores consistently meet sales goals.

To convert a first-time shopper into a customer for life, you need a framework that closely links the top business outcomes of your brand with how customer service is delivered. This includes the customer experience across touchpoints such as ease of checkout, on-time delivery, packaging quality, easy returns and warranty coverage, and more.

On the business side of things, each of these factors has both an efficiency and cost dimension that ultimately impacts the bottom line. To begin with, get clear on what customers really value and decide how you will meet those expectations. This will not go unnoticed: 60% of shoppers prefer retailers that continue to engage with them after they have bought something.

Cheat Sheet of Top 5 Ways that C-Sat can Drive Engagement and Repeat Sales

1. More Repeat Business

More Repeat Business

This is top of the list when it comes to the priorities of any business, leave alone an online store. CSAT can help you identify customers who have previously been impressed with your service. Once you know this, go all out to woo them with special offers and discounts. This can not only boost referrals but also increase customer value significantly. If you are new in business without CSAT data, begin with market research to gather insights for existing customers. The first step is to segment your customer base into high, medium, and low spenders. Why? This makes it easier for you to create a targeted pricing and product strategy for customers. The result: a positive effect on conversions.

To make the customer experience seamless once the shopper lands on your checkout page, there are a few ‘hygiene’ factors to remember:

  • Too many ads can quickly dampen a customer’s enthusiasm for your product. Keep potential distractions to the minimum until check-out is complete
  • Related products can be presented to the customer after the initial purchase has been made
  • Include a blurb for reviews on the checkout page and add live chat for the final push

Here are some numbers on how CSAT drives customer lifetime value. Marketing analytics found highly satisfied customers spend 2.6 times more than somewhat satisfied ones, reports Recapture.io. During the study, they found 64% of companies believed CSAT was the most cost-effective strategy to grow customer lifetime value.

Remember, customers that believe in your product are the best fit for your brand; it takes the least amount of effort to get them to do business with you again- exactly why you need to jealously guard their business. A seamless experience across the customer journey is critical for conversions.

2. Average order size

This is another avenue where having customers with high CSAT can help you. Since high CSAT customers naturally trust your brand more, they could be among the 20% of your clients who could be persuaded to buy more expensive products in your product line. Most online retailers leverage seasonal sales to boost customer engagement, spreading the word through email marketing campaigns and social media. The key factor in boosting average order size is getting customers to trust you and then identifying the ones who do trust you, so that you can offer your most premium products/deals to them.

Secondly, identifying the right window of opportunity is critical when displaying product recommendations. User focussed product descriptions, helpful ‘how-to’ content and optimized sales copy can influence buyer behavior, leading to higher sales. To upsell and cross-sell effectively, pair products that appeal to customers across different age and income groups. A seamless checkout experience is critical for generating higher average order sizes.

3. Fewer negative online reviews

One of the reasons why businesses invest in customer service is to avoid bad reviews. Customers don’t appreciate waiting, be it in the neighboring city or on the other side of the planet. If they are in a different time zone, it could be hours or even days before they hear back from you. This could lead to frayed tempers and result in a less than stellar review on social media. A study by Zendesk and Dimensional Research found that 39% of customers continue to avoid a brand for 2 or more years after a bad experience. The online trail of a bad review can persist for years, though. This is why it is important to create quality content that can help you suppress negative online reviews when potential customers search for your brand. A lot depends on how quickly you respond to a bad online review. The longer the customer is made to wait, the greater the chances of him going to a competitor.

4. Leverage CSAT for positive reviews

customer satisfactionThis is the ideal process that you need to build: regularly conduct CSAT surveys after customer support interactions and as soon as you notice a customer who just had an amazing experience with one of your support reps, reach out to the customer asking for a review on TrustPilot.

customer satisfactionNow, this is one of the areas which clearly demonstrates why you should definitely start collecting CSAT data from your customers. If you’ve identified high CSAT customers, ask for reviews on TrustPilot or Yelp to amplify positive feedback. Most satisfied customers are only too happy to oblige. A little nudge can undo the negative effects of bad reviews and bring more customers to your site. It is important to remember though that great service is not a flash in the pan. The positive effects of great online reviews cannot be stated enough. According to research by Bright Local, about 50% people would not spend money at a business with fewer than 4 stars.

So, you need to do everything in your power to maintain your online reputation and maintaining+tracking your CSAT score enables you to do just that!

5. Increased referrals

customer satisfactionAnother method you can use to leverage your amazing performance on CSAT  is by running a great referral program. It won’t take a heavy push to get high CSAT customers to refer your brand to family and friends. If someone with a good level of following on social media experiences poor service with your online store, it can mean the difference between having a great affiliate partner and not. Many top influencers may cease referrals if they learn of your poor CSAT scores, impacting audience recommendations.

On the other hand, an influencer who has experienced great customer service is more likely to get into a partnership with your brand. So, ensure customer support tools integrate with social profiles for agents to deliver a wow experience to influencers.

Last words:

Great CSAT is simply matching customer needs with quick answers and value for money products. This implies using everyday language and steering clear of cutting corners on your customer service spend. True, you may not need a full-sized customer service team all year round or even round the clock. However, if you have customers on the other side of the world, you’d be missing out on potential business opportunities. Why not choose a team of outsourced, US-based customer support specialists to boost coverage during odd hours – without breaking the bank? Helplama offers businesses of all sizes customized, pay-as-you-go plans without the baggage of contractual obligations. We make it easy for you to meet the expectations of your customers, in the toughest of situations.

What’s more, you can engage with your customers in real-time with AI-powered live chat software offered by Saufter. With its omnichannel approach and automated workflows, your team can deliver a better customer experience. Additionally, it offers custom pricing.

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