Enter the total number of customers served and the total number of customers satisfied into the calculator to determine the customer satisfaction fate KPI.
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KPI (customer satisfaction) Formula
The following equation is used to calculate the KPI (customer satisfaction).
KPI = TCSatisfied / TCServed *100
- Where KPI is the percentage of customers that were satisfied
- TCSatisfied is the total number of customers satisfied
- TCServed is the total number of customers served
To calculate the KPI divide the number of satisfied customers by the number of customers served, then multiply by 100.
What is a KPI (customer satisfaction)?
Definition:
KPI, short for key performance indicator, are measures of key metrics that companies outline that will show how the company is performing. One of the most common KPI’s is customer satisfaction.
How to Calculate KPI (customer satisfaction)?
Example Problem:
The following example outlines the steps and information needed to calculate KPI (customer satisfaction).
First, determine the total number of customers satisfied. In this example, the total number of customers satisfied is 500.
Next, determine the total number of customers served. In this case, the business served 750 customers.
Finally, calculate the satisfaction percentage using the formula above:
KPI = TCSatisfied / TCServed *100
KPI = 500/ 750 *100
KPI = 66.7%
FAQ
What factors can affect the accuracy of the Customer Satisfaction KPI?
The accuracy of the Customer Satisfaction KPI can be influenced by several factors, including the method of collecting customer feedback (e.g., surveys, feedback forms, social media), the timing of feedback collection relative to the customer experience, and the representativeness of the customers who provide feedback. Biases in data collection and interpretation can also impact the KPI’s accuracy.
How can businesses improve their Customer Satisfaction KPI?
Businesses can improve their Customer Satisfaction KPI by focusing on enhancing the quality of their products or services, improving customer service and support, personalizing customer experiences, and addressing customer feedback and complaints promptly. Regularly analyzing the KPI and related data can help identify areas for improvement.
Why is the Customer Satisfaction KPI important for businesses?
The Customer Satisfaction KPI is crucial for businesses because it provides insights into how well a company meets or exceeds customer expectations. A high KPI indicates that customers are generally satisfied, which can lead to increased customer loyalty, repeat business, positive word-of-mouth, and a competitive advantage. Conversely, a low KPI signals the need for improvement and can help identify specific areas where a business may be falling short.
