Abandonment rate to measure customer satisfaction

Are fewer people interested in your company? Go to Churn Rate to measure customer satisfaction and see what’s going on.

When a significant number of customers stop buying or interacting with a business, we can speak of abandonment.

Situation affecting sales and manifested in the reduction or depletion of income.

So, calculate the abandonment rate to find the percentage of customers who stopped buying your products or services in a given period of time.

It will guide you to take action.

Find out how you can measure it with us and what content we have prepared for you:

• First we will review what is customer satisfaction.
• Second, we explain how to get the abandonment rate to measure customer satisfaction.
• And finally, we’ll show you the benefits of using abandonment rate to measure customer satisfaction.

Let’s start with everything being clear.

What is customer satisfaction?

Customer satisfaction is the level at which a product or service meets consumer and user expectations.

Putting the customer first is the main goal of any business.

Remember that the customer is the one who decides what to buy and where to buy it, and also expects good service, a positive experience.

Now remember that when we talk about customer satisfaction we can find three levels:

Satisfaction when the customer perceives that what he has received meets his expectations and sees his expectations met.

The level of self-satisfaction that represents the peak of satisfaction that occurs when expectations are exceeded.

And the other extreme is dissatisfaction. It occurs when the customer’s expectations are not met.

In this case, it is very likely that he will not repeat the experience, that he will go and go with the competition.

We must not forget that a customer can perceive satisfaction based on the expectations created by the promises we make.

Then review what you’re offering so you don’t overdo it and cause disappointment.

Don’t limit yourself too much either, because nobody will care about you.

But, of course, past experience, third-party references and the expectations aroused by competition also have an impact on satisfaction.

In addition, emotions and feelings are linked.

Then the level of customer satisfaction will allow them to decide whether to repeat the experience and recommend you, or just…give up and leave.

If the latter happens, it’s better to know to what extent.

Let’s see how to calculate it:

Abandonment rate to measure customer satisfaction

In order to calculate the abandonment rate, it is necessary to have a record of the number of customers that the company or business has.

Both the number of active customers and those who are no longer there.

Next, set the evaluation period, be it weekly, monthly, quarterly, yearly.

The shorter, the easier it is to find the cause of the customer loss.

The formula for the calculation is now as follows:

Number of customers lost in a period / Number of customers at the beginning of the same period x 100 = rate of customer abandonment

It is advisable to measure short periods of time in order to make decisions and act.

It goes without saying that in every company there is a turnover of customers.

In other words: on the one hand new consumers or users are added, on the other hand they are lost.

So it’s good to pay attention to what’s happening.

Because acquiring new customers requires more time and resources than what it takes to keep current customers.

So it is best to calculate the loss and analyze the reasons to correct when the causes are in our hands.

Analysis of the results

When analyzing the results, check whether the number of active customers is greater than the number of customers who have abandoned the offer.

The result in this case is a negative churn rate.

Income is therefore not affected.

A low abandonment rate indicates that the company is doing its job well, although it can improve.

When the churn rate is high, income falls, reputation suffers and there is internal demotivation within the company.

Therefore, you need to find out whether the reasons are external or related to your company.

Remember that there are many reasons customers leave. Some do not directly depend on your site.

The customer may no longer need the service or product. Maybe you have financial problems. This is not something you can control.

But in other cases yes.

For example, if you don’t find the value of the product or service; perceives poor quality; The competition offers you a better alternative or the attention you receive is not what you expected.

It is worth recommending this article where you will see What is customer churn and how to reduce it?

Benefits of abandonment rate to measure customer satisfaction

If we know the abandonment rate to measure customer satisfaction, we can determine the abandonment percentage.

Therefore, take measures that allow you to:

• Reinforce measures to retain customers and build loyalty.
• Avoid losing more customers.
• Improve the picture.
• Increase reputation.
• Estimate the number of new customers needed to sustain the business.
• Act to extend the customer lifecycle.

Finally…

Knowing the abandonment rate to measure customer satisfaction is one way to know if the company is delivering on expectations.

And while losing customers is as natural as getting new customers, it needs to be monitored.

As we have shown you, the calculation is easy as long as you have the data on the number of customers who left in a period and the amount of total that existed at the beginning of the same period.

This can be as short as weekly, monthly, quarterly.

The results will show if action needs to be taken in the event of a significant customer loss.

The causes can be internal to your organization or external, which means you cannot control them.

They ask those who stop being customers the reasons for the decision and then take action to improve.

Supplement the information your business needs with metrics like Customer Effort Indicator (CES) and Customers’ willingness to recommend your product or service (NPS), which you can also use to measure customer satisfaction.

Therefore, before closing, we recommend these posts with the above topics:

Thank you for reading us.

Until next time!