Customer satisfaction and customer loyalty have always been essential to the sustainability and success of companies. According to a Harvard Business Review study, a 5% increase in the retention rate can lead to an 85% increase in profits. And since customer satisfaction is essential to customer loyalty, it makes sense to want to increase customer satisfaction.
IntoTheMinds is the specialist of satisfaction and loyalty research. Our scientific approach to customer satisfaction allows us to meet all challenges:
- a qualitative study of the factors that influence customer satisfaction
- measurement of customer satisfaction
- statistical analysis and modelling of loyalty and attrition (also called “churn”)
Customer case: 500% increase in customer loyalty
The case of ProDegustation, the French leader in the sale of online oenology courses, was the laboratory for the development of our analytical methods between 2005 and 2011. The work carried out on satisfaction and loyalty has led to a drastic improvement in the company’s accounts, allowing it to be sold to the holding company Videlot, owner of Château Petrus, in 2011.
Thanks to a qualitative study, we were able to map the customer experience and satisfaction at each of its stages. The absence of motivational factors allowing loyalty has led to the development of a new product line, the optimisation of the ordering process and the implementation of a CRM.
Finally, tools to measure customer satisfaction have been implemented, and performance indicators reported to management.
Why should you increase customer satisfaction?
Here are 6 good reasons to want to better satisfy your customers:
- Customer satisfaction positively influences customer loyalty and purchase intentions
- Better loyalty also means losing fewer customers
- Satisfied and loyal customers are more profitable in the long term (a Harvard Business Review study estimates the potential gain at 85%: it is less expensive to keep customers than to seek new ones)
- A company that is committed to satisfying its customers is a company that stands out
- Negative word of mouth decreases in proportion to customer satisfaction
- By keeping your customers longer, you will be more profitable and make more profits
Our founder, an international expert in customer satisfaction
The founder of IntoTheMinds, Pierre-Nicolas Schwab, holds a PhD in marketing. His PhD thesis focused on customer satisfaction and more specifically on the management of complaints and the relationship between companies and customers.
Passionate about satisfaction and loyalty for more than 20 years, he has made it the company’s spearhead.
The limited size of IntoTheMinds’ team makes it possible for him to personally supervise all projects. In this way, he instills his expertise at all levels of the project and makes sure that all projects meets the same high quality criteria.
Some of its publications are available for free access:
How to increase customer satisfaction and loyalty?
Before you can increase satisfaction and loyalty, you need to have a clear idea of what these two factors mean for your company. It is wrong to believe that this type of analysis is reserved for large companies only. Solutions exist for start-ups and SMEs.
Start by measuring satisfaction and loyalty to find out where you stand. Then implement a marketing strategy that will allow you to increase customer satisfaction and loyalty over the long term.
Here are some questions to ask yourself:
- What do my customers really want? Does my current offer really meet their current and future needs?
- What are my competitors doing? Do they innovate and have ideas that could threaten my business?
- What is my loyalty rate? In other words, what percentage of my customers makes more than one purchase in a given period?
- Is my customer service customer-oriented? Does my knowledge of customer needs allow[SI4] me to anticipate their needs?
- Is the customer experience I offer different from that of my competitors? Do customers come to my premises out of habit, or are they happy to come and spend their money on my business?
Measuring customer satisfaction: an ISO 9001 requirement
Companies that are ISO 9001 certified or seeking to be certified must provide proof of the implementation of a customer satisfaction control system. The standard states that;
The organisation shall monitor information on the customer’s perception of the level of satisfaction of its requirements by the organisation as one of the measures of the performance of the quality management system. The methods for obtaining and using this information must be determined.
However, the standard does not impose any particular measurement method. By using our services, you are assured that you will be advised of the most appropriate methods.
What tools should be used?
Here are some tools you can use to improve the situation
- Satisfaction measurement tools: even though a satisfaction questionnaire is always useful, we advise you as a first step to simply use the Net Promoter Score (NPS), which will allow you to measure the state of customer satisfaction in your company with a single question (measured on a scale of 1 to 10) “How likely are you to recommend company/brand/product X to a friend/colleague/family member? ».
- Customer loyalty measurement technique: not everyone has sophisticated CRM software to automatically calculate the customer loyalty rate and CLV (Customer Lifetime Value). However, all companies necessarily have a listing (most of the time in Microsoft Excel) from which it is possible to analyse the rate of recurring purchases and to have an estimate of the “monetary value” of a customer.
- Customer experience analytical framework: on request, we provide you with a framework for an exhaustive analysis of your customer experience and the resulting satisfaction. This tool is called “the wheel of customer experience” and makes it possible to analyse all the emotions and feelings felt by a customer before, during and after the purchase of a product or service.
What budget for a customer satisfaction and loyalty survey?
Our satisfaction and loyalty surveys start at 5000€, excluding VAT. Trust IntoTheMinds to study your customers’ satisfaction.