Customer satisfaction reflects people’s liking of a company. High levels of customer satisfaction (with pleasurable experiences) are strong predictors of customer retention and loyalty as well as product repurchase. Well-constructed satisfaction surveys provide the insights that are the foundation for creating and reinforcing pleasurable customer experiences. Determining Customer Satisfaction is crucial to your business because the cost of acquiring a new customer is usually 10x bigger than the cost of keeping one that already bought from you.
Customers expect things to go well, to receive what they are paying for, so they are less likely to talk about your service or product if all goes well, but if something is off, they are more likely to talk about this with other people about their bad experience which leads to bad publicity.
Bad experiences are the main reason for a high churn rate (up to 67%) but only 1 out of 26 unhappy customers complain. The rest just leave. On the other hand, 72% of customers will share a positive experience with 6 or more people according to Esteban Kolsky.
So keeping a close eye on customer satisfaction is mandatory for your success as a business.