Five customer feedback terms you need to know
Seeking feedback sounds easy, you just ask your customers or staff about how they feel about your business or its products and services, right?
Well, it’s a little more complex than that with different methods available, along with different measures and results.
So, here’s a quick guide to five customer feedback terms you need to know.
Net Promoter Scores (NPS)
A net promoter score is a ranking that assesses customer or staff loyalty to a business or brand.
When consistently measured, the score helps track how a business is performing in terms of customer or staff satisfaction.
It is based on the simple question: “On a scale of 1 to 10, how likely are you to recommend our products/services/business to a friend?”.
Answers are then divided into three categories:
- Those who respond 9 and 10 are considered Promoters, in that they are likely to be true advocates for your business.
- Those returning a score of 7 or 8 are considered Passives.
- Those returning 0 to 6 are Detractors, meaning they are less likely to exhibit value-adding behaviour, and may actually work against your business.
The formula for working out the NPS is then: (Number of Promoters — Number of Detractors) / Number of Respondents x 100.
The higher the percentage, the better your organisation is performing when it comes to culture and staff morale. You can learn more about Net Promoter Scores and why they matter here.
The Likert scale
The Likert scale is the most widely used scale when it comes to seeking feedback and it asks respondents how much they agree with a statement on a five-point (or seven-point) scale.
Answers can be in text form: Disagree, somewhat disagree, neutral, somewhat agree, agree (or in the case of the seven-point scale: strongly disagree, disagree, somewhat disagree, neutral, somewhat agree, agree).
Alternatively, answers can be set out in smiley face form.
The initial question is usually followed up by asking the respondent to give a short reason for their answer.
Customer Satisfaction Score (CSAT)
As the name suggests, this score measures customer satisfaction with an experience or product. It is different to the net promoter scores, as the NPS seeks to ascertain overall loyalty, while the CSAT speaks to the here and now experience.
CSAT is usually measured via the Likert scale and often appears at the end of a survey.
It involves a question that goes like this:
“How would you rate your satisfaction level with the goods/services you received?”
- Very unsatisfied
- Very satisfied
The CSAT is then calculated by adding together the number of satisfied and very satisfied customers, dividing them by the number of survey respondents and multiplying the figure by 100 to give a percentage.
Or in other words: (Number of satisfied customers (4 and 5) / Number of survey responses) x 100 = % of satisfied customers
Customer Effort Score (CES)
While the CSAT measures satisfaction with a product or service, the customer effort score (CES) seeks to understand how easy it is for a customer or employee to engage with your business and get the products and services they seek.
It’s measured on a Likert scale, 10-point scale or even via emoji, and the aim is to ascertain the percentage of people who enjoyed an easy experience.
The feedback loop
In business, the feedback loop refers to the process of using customer or staff feedback to improve a product, service or workplace.
Closing this feedback loop (aka taking action based on feedback) is considered paramount, as it indicates a business is willing to improve based on customer or staff satisfaction and provide a better experience.
Looking to understand the customer and staff experience?
Our easy to install ExpressPODS can be positioned wherever you choose in your business to gauge metrics like net promotor scores, customer satisfaction, customer effort scores and more.
This feedback is then quickly distilled into usable reports complete with actionable tips on what needs to be addressed.
You can learn more about Moodly ExpressPODs and how they can simplify and improve the feedback process here.