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Customer Satisfaction Segmentation: Back to the Basics

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Jami asks, “I’ve read about all these loyalty schemes: Promoters, Passives, Detractors; Apostles, Mercenaries, Hostages, Defectors; and – thanks to you – Rebels, Captives, Moral Supporters and Champions. I just want something simple that works.”

Actually, Jami, I think each of those is pretty simple and has its place (and frankly I’ve come up with more complex variations on them!). Still, to keep it as bare-bones as possible you could use a satisfaction segmentation.

Ask your customers the public-domain CSAT question:

What is your overall satisfaction with our company?

• Not at all satisfied
• Slightly satisfied
• Moderately satisfied
• Very satisfied
• Completely satisfied

For customers who don’t give you the highest rating, follow up with, “Why aren’t you completely satisfied?”

Then group customers by their answers like this:

• Dissatisfied
  • Not at all satisfied
  • Slightly satisfied
• Satisfied
  • Moderately satisfied
  • Very satisfied
• Completely satisfied

Analyze your survey data by these three segments. Figure out where the gaps are between the Satisfied and Completely Satisfied; try to get those customers to total satisfaction by improving your products, services and policies. Follow the same steps to move Dissatisfied customers into the Satisfied customer group. Rinse and repeat in a closed-loop feedback process.

If you think “complete satisfaction” is impossible, refer to the InfoQuest research I discuss in my post, Completely Satisfied Customers Spend 2.6x Somewhat Satisfied Customers. Over time, your Completely Satisfied group will generate the most revenue for your organization.

The generic CSAT question might seem boring, but it is effective, and according to research by Business Over Broadway it closely correlates to other measures:

• Likelihood to choose your company again for the first time
• Likelihood to recommend
• Likelihood to continue purchasing the same products and services.

When conducting a new customer satisfaction effort, I actually like to ask customers a portfolio of customer-experience questions to see which technique is the most promising for their unique business. And when I test a CSAT segmentation I sometimes run the analysis with “Moderately satisfied” in the Dissatisfied group. But, Jami, if you’re not currently using any loyalty model, by all means implement a customer-satisfaction segmentation. A “back to the basics” approach can work wonders for your business.