Customer satisfaction: what it is, why it matters, and ways to improve it

Deep dive on the topic

Table of Contents

Increasing your customer satisfaction rates isn’t as simple as sending out a survey every once in a while. Truly understanding customer satisfaction means building an informed strategy and measuring your success using dedicated tools and tactics. 

It’s worth the effort: learning how to improve customer satisfaction helps you empathize with your users, refine your value offer, increase revenue, decrease acquisition costs, and so much more.

 

Summary

  1. Customer satisfaction describes how happy customers are with a company’s product, services, and overall experience. A high level of customer satisfaction can:
    1. Increase customer retention and loyalty 
    2. Increase efficiency 
    3. Improve overall UX
    4. Help with upselling and cross-selling
    5. Increase employee satisfaction
  2. Avoid these seven key customer satisfaction pitfalls:
    1. Bad buying experiences
    2. Poor navigation
    3. Broken links
    4. Complicated checkout process
    5. Bad product experience (PX)
    6. Poor customer service and support
    7. Unclear troubleshooting steps
  3. Follow these seven steps to improve customer satisfaction rates:
    1. Define your goals
    2. Identify current obstacles to customer satisfaction
    3. Use the right tools to help measure success
    4. Implement changes and gather more data
    5. Improve customer support
    6. Prioritize post-purchase follow-up
    7. Listen to your customers
  4. To put it all into practice, see how a real-life business improved their customer satisfaction and start improving your own customer satisfaction rates today

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What is customer satisfaction—and why does it matter?

Customer satisfaction describes how happy customers are with a company’s products, services, and overall experience. Customer satisfaction is important to grow your business and understand user needs. 

Note: customer satisfaction is slightly different from both customer loyalty (the continuous relationship between a customer and a business) and customer delight (the practice of exceeding customer expectations).

Here are the top five reasons your customer satisfaction (CSAT) matters:

1. Increased customer retention and customer loyalty

It’s not surprising that when customers have a poor experience with a company, they’re less likely to return. Customer retention is especially important for SaaS organizations with a recurring revenue or subscription model, as it’s often more expensive to acquire new customers than retain existing ones. 

Satisfied customers are much more likely to stay loyal to your product or brand, keeping your churn rate low. Word of mouth matters, and you want a customer base that’s raving about how great your products, customer service, and overall user experience (UX) are, rather than criticizing your brand. 

2. Increased efficiency

If you’re making an effort to increase your CSAT score, that likely means you’re regularly sending out surveys, conducting customer interviews, and doing market and user research to find customer pain points. 

Paying attention to your customer satisfaction levels helps your organization figure out what's working well with your products and services and which areas need improvement. Often, this means eliminating unnecessary information that may confuse customers and streamlining processes to make them more efficient. The faster you can get a customer to a sale, the better.

3. Improves your UX

Locating customer pain points and responding to customer satisfaction feedback lets you identify the most effective changes to implement on your website, store, and product. If customers are struggling to find the information they need to make a purchase or navigate your product once they’ve signed up, they’ll become frustrated and express low levels of satisfaction.

Collecting customer satisfaction data is a great way to dive deeper into what can be improved across your platform, helping product and UX teams prioritize finding ways to streamline and move users through the customer journey more smoothly.

4. Helps with upselling and cross-selling

Happy customers are much more likely to be interested in new features, upgrades, or companion products. Satisfied users are often more concerned with the overall experience or quality of products, rather than the price, making it easier to upsell or cross-sell to them.

However, this isn’t about hard sells (a sales strategy that is direct and forceful) or pressuring customers. 

Using customer satisfaction data to identify upselling opportunities is a chance to improve the digital customer experience (CX) and provide users with all the features and products they need to accomplish their goals.

5. Increases employee satisfaction

Happy customers = happy employees, and vice versa. 

Why? It’s simple. Employees set the tone for customer experiences. When employees are miserable at work, the quality of their interactions with clients suffers. But when team members feel empowered to help customers and provide them with great experiences, their overall job satisfaction increases.

If your company is providing great products and services and putting effort into improving customer satisfaction scores, it’s likely to have a positive impact on your employees as well.

After all, both customer churn and employee turnover are expensive. Everyone wins when your organization takes steps to avoid these by boosting customer satisfaction.

7 key customer satisfaction pitfalls to avoid

Dissatisfied customers and poor reviews are one of the quickest ways to tank sales and damage your reputation.

To keep customer satisfaction scores high, avoid these common pitfalls:

1. Bad buying experiences

A poor buying (and browsing) experience is one of the fastest ways to ensure a customer will never make another purchase from your company. Customers should be able to find everything they need on your site and receive their products or subscription access promptly.

A few specific pitfalls to avoid include lack of personalization throughout the browsing and buying experience, selling items that are out of stock, and poor delivery.

2. Poor navigation

If users can’t find the information they need to learn about your product or make a purchase, how will they ever convert? Your website and other content should be clear, concise, and easy to follow.

You may have heard of the 'three-click rule' stating that if users can’t find what they’re looking for in three clicks or less, they’re likely to become frustrated and bounce from your website. 

Do regular UX audits of your site and see how to improve navigation bars, search filters, and other aspects of the user experience. Place CTAs and important information in prominent locations so users won't overlook them. Customers should never have to dig for information—it should be served directly to them.

Contentsquare’s Session Replay tool helps you see exactly what your users see by showing you how they interact with your site ‘in the wild’. Are they rage clicking after struggling to find the info they need? Watching playbacks of how your customers engage with your site will help you find out. 

Use Contentsquare Session Replays to determine where your users are getting stuck

3. Broken links

If links on your site are broken, customers won’t be able to navigate to important information or make purchases. Plus, it makes your company look unprofessional and even untrustworthy.

After all, if you can’t monitor the bugs within your own site, how can users be sure that you’re marketing a quality product? 

To prevent this, stay on top of bugs and blockers in the user experience. 

Use Contentsquare’s Feedback Collection widget that lets users immediately communicate any problems they’re having, and set up a tool such as Google Search Console that alerts you if your website is experiencing issues. 

4. Complicated checkout process

It’s important to reduce the number of hoops a potential customer has to jump through to convert. Keep your checkout process as simple and streamlined as possible.

The fewer steps in a checkout process, the better. Customers don’t want to have to create an account, fill out dozens of form fields, and complete other tedious tasks.

Instead, allow autofill information and try to keep your checkout on one page instead of a multi-page process.

5. Bad product experience (PX)

If a customer is dissatisfied with their product experience, they’re not likely to make another purchase from your company. 

Provide your users with a high-quality product that’s accurately marketed on your website and other touchpoints. Be honest in your marketing about your product’s abilities and features, and avoid false or misleading claims. 

Then, check in regularly with users to make sure you understand what they want, and prioritize customer needs in your product offering and updates. 

6. Poor customer service and support

Failing to offer real-time support, a poor attitude, and struggling to resolve tickets at the first customer touchpoint can tank your customer satisfaction levels.

Build a culture of customer empathy and put your employees through customer service training. Also, give your support team the resources they need to respond rapidly to customer doubts and queries.

Improving your customer service experience reduces customer complaints and increases product adoption with satisfied customers.

“This is a significant indicator for evaluating customers' satisfaction, as customers like getting a response to their inquiries as quickly as possible, even if the answer doesn't address their problem right away.”

Frederic Linfjärd, Former Director of Growth Marketing @ Planday

7. Unclear troubleshooting steps

You want users to self-serve—solve product problems on their own—to reduce the burden on your support team. But without clear troubleshooting steps, you’ll just frustrate them.

Ensure your ‘help’ or ‘how-to’ content is simple, clear, easy to understand, and easy to navigate. This includes being considerate of all language levels and avoiding overly complex words. If users have access to great support content, they’re more likely to be satisfied with their customer experience.

 

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7 steps to improve customer satisfaction rates

Adapt our seven-step customer satisfaction roadmap to your business and product to get on the right track to higher customer satisfaction:

Step 1: define your goals

Before you start implementing changes on your website or product, define what goals your company is trying to accomplish. Get as granular as possible: as well as targeting a higher CSAT, focus on other customer satisfaction goals, like lower average response time or lower number of touchpoints.

Defining your goals helps guide the areas of focus for your organization and where you should focus your energy when making product improvements.

Step 2: identify current obstacles to customer satisfaction

Ask yourself the following questions to identify elements that prevent a high level of customer satisfaction:

  • Where are your customers’ pain points occurring?
  • Where do they bounce from your site or stop scrolling?
  • What makes them churn or resist new features or upgrades?
  • What frustrates them about your customer service or support?

Understanding what’s blocking customer satisfaction is key to defining your areas of improvement. 

For example, if your main issue is a long wait time for support, shift company resources to streamlining those channels and even adding more staff. If your customers are dissatisfied because they’re struggling to find information on your site, prioritize UX improvements to navigation.

Step 3: use the right tools to help measure success

Building your tech stack with tools that helps you understand and analyze user behavior and measure success is a great way to validate your ideas when making product changes.

“With multiple funnels bringing you different kinds of data and information, it’s difficult to zero in on accurate insights regarding your brand's customer satisfaction performances. The right tools are equipped to measure only crucial data and are capable of shuffling through mountains of information to bring only those bytes that matter.”

Eva Taylor, Content Manager @ WP Buffs

Contentsquare’s Digital Experience Analytics tools—Zone-Based Heatmaps, Journey Analysis, and Session Replays—help you visualize user behavior and see firsthand what customers experience.

And Voice of Customer tools such as Feedback Collection and Surveys let you send out CSAT surveys to help you understand why customers are (or aren’t) satisfied, and whether the changes you’ve made had a positive effect on customer satisfaction.

Contentsquare’s Voice of Customer tools help you understand your customers’ satisfaction levels

Step 4: implement changes and gather more data

Once you’ve implemented product or website changes, set aside time to gather and analyze data to get to the root causes of customer roadblocks. 

Measure customer satisfaction metrics like average ratings, NPS®, customer effort score (CES), bounce rates, and more. 

Are a large number of customers experiencing bugs? Long wait times? Once you figure out if the changes you made are having the expected impact on your customer satisfaction, you’ll be able to either continue on the same path or switch direction.

Step 5: improve customer support

Customer support is an important touchpoint for customer satisfaction, and you should always be taking steps to improve the support experience. 

Identify areas of frustration in your current support process, and prioritize improvements—whether that means updating help documentation, adding a chatbot, or investing in more support staff.

Step 6: prioritize post-purchase follow-up 

Continuing to communicate with your customers after they make a purchase or download your service is a great way to build a solid product experience and relationship with users. Send them a thank-you email, ask them for feedback to improve the process, and suggest other products or features they may be interested in.

Keep your post-purchase communications friendly, clear, and concise, and adapt them to the channels your customers use most, whether that’s email, social media, or a messaging service. Gather data with your preferred tools and test what works best for your product and your customers.

Step 7: listen to your customers

Regularly collecting customer feedback is the best way to check how your business is performing and identify gaps or opportunities for improvement. 

Giving customers the opportunity to express themselves opens the door to conversations about what customers want, and ultimately, helps you create a better product.

🔥 Pro tip: Contentsquare’s Exit-Intent Surveys and Feedback Collection tools help you continuously gather customer insights. Encourage your customers to give honest responses to surveys by clearly stating that you want their feedback. This gives your customers the chance to discuss any thoughts they have about your company or product that they haven’t yet expressed.

How a real-life business improved customer satisfaction

So what does a great customer satisfaction strategy look like in action? 

Take TotalEnergies Power and Gas Belgium (TotalEnergies), whose team understands that revolutionizing their user experience and improving customer satisfaction levels is key to gaining a competitive advantage in their market. And that in order to do so, they need to drill down to specific details and get to the root causes of customer obstacles.

To improve the digital experience for their customers, TotalEnergies integrates tools in their tech stack—Google Analytics 4 and Optimizely—with Contentsquare to gain a comprehensive view of the customer experience, which allows them to apply granular testing, personalizations, and optimizations to their digital experiences, ultimately resulting in exceptional customer satisfaction levels.

TotalEnergies also uses Session Replays to optimize their conversion processes by identifying areas of friction to understand why users struggle and drop off, and then address the issues they’re facing.

Seeing an immediate return on investment with Contentsquare, TotalEnergies is able to effectively analyze user behavior and pinpoint issues causing high bounce rates and dissatisfied users to improve the overall customer satisfaction. 

“The investment of Contentsquare does pay itself back directly because we can easily conduct analyses that not only identify where customer pain points are but also why they arise. These insights are invaluable to optimize our website according to our customers’ needs, improve customer satisfaction and ultimately boost acquisition."

Dirk Biesmans, Head of Digital @ TotalEnergies

Start improving your customer satisfaction rates today

Boosting your customer satisfaction rates is one of the best ways to improve your company’s KPIs as a whole. Focusing on CSAT benefits your customers, employees, sales, brand, and much more. 

Investing more time and resources into analyzing your customer satisfaction data is a great start. Strategically prioritize improvements by using tools that help you track user data, analyze behavior, and get direct customer insights.

 

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Frequently asked questions about customer satisfaction

Are customer satisfaction and customer delight the same?

No, customer satisfaction and customer delight are not exactly the same. Customer satisfaction describes how happy customers are with a company’s products, services, and overall experience. Customer delight is the practice of exceeding customer expectations.

 

What tools can help my organization measure customer satisfaction?

Tools such as Contentsquare’s Feedback Collection widget and Digital Experience Analytics tools let you discover how your customers are feeling and help you make improvements. You can also use tools like Google Analytics.

 

What factors affect customer satisfaction?

Factors such as customer service, user experience, product quality, checkout process, wait times, and much more can have a direct impact on customer satisfaction scores.

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