Types of Feedback Systems

Using a traditional definition, customer feedback is any information that comes directly from your company’s customers. This information conveys these customers’ thoughts, feelings, satisfaction levels, or opinions about your product, service, or brand.

There are different ways to assess Costumer; we will talk about one in this article: Feedback Survey.

In the Post Covid work environment, most of the things are online. Classes, Shopping, Business, Meetings, Events, etc. Hence most of the feedback collection happens online.

A feedback Survey is one of the best ways to collect feedback online. But putting up random questions and asking for ratings might not give us the answer we wanted. This is where feedback systems come in. Am going talk about three such systems in this articles

Net Promoter Score (NPS)

Net Promoter Score is a customer loyalty metric created by Fred Reichheld, Bain & Company and Satmetrix in 2003. It is based on the perspective that every company’s customers can be placed within three types.

“Promoter” customers are enthusiastic and loyal, who continually buy from the company and ‘promote’ the company to their friends and family.

“Passive” customers are happy but can easily be tempted to leave by an attractive competitor deal. Passive customers may become promoters if you improve your product, service, or customer experience.

Finally, “Detractor” customers are unhappy, feel mistreated, and their experience will reduce the amount they purchase from you.

Detractor customers also have an increased likelihood of switching to a competitor and warning potential customers to stay away from your company.

In a nutshell, customers who give you a rating of 9 or 10 on a scale of 0 to 10 are considered Promoters. Customers who give you a rating of 7 or 8 are passive, and while they are not dissatisfied, they do not factor into the NPS score. Lastly, any customers who provide you a rating of 6 or lower are considered your detractors.

Your Net Promoter Score is calculated by subtracting the detractors from promoters to get an overall NPS result. Your Net Promoter Score can range anywhere from -100 to 100 and is always displayed as an integer.

To begin to determine and understand your Net Promoter Score, the ultimate NPS question must be asked to your customers:

“On a scale of zero-to-ten, how likely is it that you would recommend us (or this product/service/brand) to a friend or colleague?”

Given the NPS range of -100 to +100, a positive score or NPS above 0 is considered “good,” +50 is considered “excellent,” and above 70 is considered “world-class.” Based on global NPS standards, any score above 0 is “good.” This means the majority of your customer base is more loyal. Keep these global benchmarks in mind as you assess your results. Note that we are discussing customers, but the same NPS score ranges apply to employee NPS

• Generally, if your net promoter score (NPS) is below 0, that is an indicator that your company needs to understand and improve customer satisfaction levels.
• If your NPS is above 50, you are doing great! Your company places customer satisfaction high in priority and has a lot more satisfied customers than dissatisfied ones.
• An NPS rating of 70 or more puts you on the list of top customer-centric companies. This likely means that your customers love you, and your company generates many positive word-of-mouth referrals.

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT) measures customer satisfaction with a business, purchase, or interaction. It’s one of the most straightforward ways to measure customer satisfaction, and it’s obtained by asking a simple question, such as ‘How satisfied were you with your experience?’ To answer, there’s a corresponding survey scale, which can be 1–3, 1–5, or 1–10.

A CSAT score is easy to calculate. It’s the sum of all responses, divided by the total responses collected, then multiplied by 100. The outcome leaves you with the overall percentage of satisfied customers at your business.

A big strength of the Customer Satisfaction Score lies in its simplicity: It’s an easy way to close the loop on customer interaction and determine whether or not it was effective in producing happiness.

Since it’s a quick survey, you can ask it across multiple experiences during a customer’s journey and get a big-picture view of how your customer feels at various touchpoints during the process. This makes it easier to find potential bottlenecks and improve the customer experience.

Customer Effort Score (CES)

Customer Effort Score (CES) is a customer loyalty metric used by companies to measure the level of effort that a customer experienced with a particular interaction.

It’s measured by asking customers to agree or disagree with the following statement: “[Placeholder for company name] made it easy for me to handle my issue.”

The respondents can choose from seven strongly disagree (score 1) to agree (score 7) strongly.

The CES score is calculated by finding the average of all responses.