- 67% of customers who had a great experience with an employee said they would buy again from that organisation, compared to 11% who had a bad experience.
- 63% of customers who had a great experience with an employee said they would recommend that organisation, compared to 10% who had a bad experience.
ROI Toolkit
Investing in Service improves customer satisfaction, drives retention, and ultimately boosts revenue.
The methodology
To measure ROI using CSAT/NPS, organisations can begin by collecting customer feedback through surveys. If scores are anonymised, data analysis and behaviour mapping can link them to individual customers. The next step is to monitor the relationship between CSAT/NPS scores and customer retention or churn over time, identifying any patterns.
For instance, a 10-point increase in CSAT might correlate with a 15% reduction in churn, allowing the organisation to project business value. If this improvement leads to retaining 15% more customers and increasing revenue by Ā£100,000, with an investment of Ā£20,000 to achieve it, the ROI would be Ā£80,000 (Ā£100,000 revenue gain minus Ā£20,000 investment).
This approach highlights how enhancing customer satisfaction can directly drive financial performance across various sectors.
An example organisation using the CSAT/NPS v Retention/Churn metric
This method is applicable to any sector with recurring or annual subscription models, such as insurance, energy, and telecommunications.
Proving this metric gives a clear indication of how improving CSAT adds business value.
Things to consider
This method is particularly effective for sectors with recurring or annual subscription models, such as insurance, energy, and telecoms, where customer retention is critical.
The link between high CSAT scores and key business metrics like loyalty, trust, and reputation is well-established. Research, such as the UKCSI, highlights that customers scoring 9 or 10 for satisfaction are significantly more likely to also give high scores for trust (95%), reputation (83%), and intention to remain a customer (96%). Similarly, "The Customer Knows" report reveals that a great customer experience strongly influences repeat business (67%) and recommendations (63%). These insights underline the importance of investing in strategies that boost CSAT but also emphasise the need for detailed analysis to pinpoint the most effective actions for achieving these results.
Key research/insight from us
Research from post card
The Customer Knows (2016)
The Customer Knows (2016)
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