Mobiance, Iran Loyalty Token

Customer Satisfaction and Customer Loyalty

  • January 9, 2022

What is the difference between Customer Satisfaction and Customer Loyalty?

Customer satisfaction defines as how your customer feels about your product or service. It is measured using the CSAT score, a qualitative questionnaire sent in a survey.

On the other hand, customer Loyalty has two definitions. It consists of customer retention (loyalty behavior), the repeated purchases from a brand instead of choosing competitor brands, and loyalty attitudes, which are opinions and feelings about products, services, or businesses related to repeat purchases.

Evidently, as long as customers are loyal to your business, they will buy from you and recommend your products or services to others. It can be said that every loyal customer is a satisfied customer but not every satisfied customer is a loyal one.

How Customer Satisfaction is Measured

Customer satisfaction for your brand can be made of happy customers and unhappy customers; however, you should choose a narrative since your response means everything. Therefore, your measurement and tracking of customer satisfaction are necessary to gain insight.

CSAT score is usually measured after the culmination of transactions with your customers. It precisely indicates your customer’s feel after doing the transaction with your brand. Consequently, it is more of an accidental measure rather than a permanent score.

The measurement gives businesses an excellent instrument to wipe out any frustration the consumers had during the touchpoint, which effectively prevents them from sharing the bad experience on social media. According to a study, every American share their bad experiences with a brand with fifteen people. Hence, it is substantial to accumulate the CSAT after a transaction as soon as possible to handle the customer and brand image better.

Measuring Customer loyalty

Customer loyalty is usually measured using the Net Promoter Score (NPS); in short, it measures how many fans you have. You then focus on those fans to try to create even more fans.

 It is just a survey with one question that is sent to your customer asking about “how likely are you to recommend our product to others”? On a scale from 1 to 10, their response gets measured.

There are three meanings that you can understand from their responses :

  1. The customers who give a score of 9 or 10 are called Promoters, who are your biggest asset among your customer base. They would buy continually from you and recommend your brand to their family and friends.
  2. The customers that are satisfied with your service but are not committed to it are called passives (7-8). They will remain loyal to your brand if they haven’t found a deal better than yours.
  3. Customers whose scores vary between 0 to 6 are Detractors whowill potentially damage your business. They are not only discontented with your brand but would also disperse negative feedback in their social circle.


Final thoughts

Customers are usually not as definitive as you want them to be. To be more specific, only 1 out of every 26 unhappy customers complain. This statistic shows that we have to learn to identify unhappy clients and take corrective measures towards enhancing their satisfaction as even silent customers have a voice.

Another reason for not settling down just with the satisfied customers is that in most cases, they simply say they are satisfied rather than going into the details of what you can improve. Generally, even satisfied customers just say they are satisfied rather than going into details and suggesting to you how to improve your services.

If you only rely on customer surveys to find out about your customer’s loyalty index or satisfaction levels, your analysis would not be accurate enough. It would be more reasonable if you also measure it through regular customer touchpoints you make when you are serving them.

Customer loyalty is a mindset you need to execute across all channels of customer interactions. Your business can be fetched and leveraged to new pinnacles with due persistence and consistent efforts.

The difference between customer satisfaction surveys and customer loyalty surveys is that customer satisfaction surveys are focused on measuring customers’ current mindsets, whereas customer loyalty surveys focus on anticipating customer manners and attitudes.

As you begin your plan to measure customer loyalty, consider online survey software.

Online survey software is a useful instrument for the beginning of the customer loyalty measuring plans. With the mentioned software, you can either create a separate customer loyalty survey or include customer loyalty-focused questions within a customer satisfaction survey. Having an awareness of customer loyalty is a critical piece, Regardless of your survey examination method, to the triumph of your business.