Customer Satisfaction vs Customer Loyalty

How to Differentiate

Customer satisfaction is a gauge of how your target market perceives your brand or product. It is derived using some qualitative survey questions and is ultimately expressed as a score. The score is known as a CSAT. Customer loyalty, on the other hand, is the attitude a customer exhibits by being devoted to your brand. Of course, this extends far beyond simple client satisfaction. Although having satisfied customers is a good thing, any business would benefit more from having loyal customers. A devoted customer promotes your business positively and wouldn't switch to a rival. Therefore, using this idea, we can claim that while every satisfied customer is a loyal one, not every satisfied customer is a loyal one.

Customer Satisfaction Evaluation

The CSAT score is often calculated following the conclusion of a certain transaction with your customer. It is a blatant indicator of how your customer feels about your brand following a transaction. Therefore, rather than being a final score, it is more of an accidental assessment. For instance, after a support call is over, you can ask the consumer how satisfied they were with the call overall. Typically, this is evaluated on a scale of 1 to 5 or 1 to 10.

Customer Loyalty Evaluation:

In order to gauge client loyalty, the Net Promoter Score is typically used (NPS). You only ask your customers one question in this survey: "How likely are you to recommend our product to others"? Their reaction is scored between one and ten.

• Promoters (9–10): Promoters are those who give a score between 9 and 10. They are your most valuable consumer base member.
• passive (7–8): These customers have neither positive nor negative opinions of your company. Although they are happy with your service, they are not loyal to it.
• Detractors (0–6): Customers that provide a score between 0 and 6 are most likely to hurt your company's reputation.

The conclusion

Customers frequently lack the desired level of expression. In actuality, only 1 out of every 26 dissatisfied consumers really makes a complaint. The remainder of them just churn. This demonstrates that even silent clients may speak. Simply learning to recognize them will enable us to improve their pleasure through remedial action. You must adopt a customer-centric approach in all consumer engagement mediums. It may be attained and used to propel your company to new heights with the proper persistence and persistent efforts. For more details about this topic check our Customer Satisfaction and Loyalty training program