Final answer:
Customer satisfaction can be measured using metrics such as first contact resolution rates or customer retention rates. First contact resolution rate measures the percentage of customer inquiries resolved during the initial contact, while customer retention rate measures the percentage of customers who continue to do business with a company. These metrics provide insights into customer satisfaction and loyalty.
Step-by-step explanation:
Customer satisfaction can be measured using various metrics, such as first contact resolution rates or customer retention rates. First contact resolution rate refers to the percentage of customer inquiries or issues that are resolved during the initial contact with customer service.
For example, if a company receives 100 customer inquiries and is able to resolve 80 of them during the first contact, the first contact resolution rate would be 80%. This metric is useful for evaluating the efficiency and effectiveness of customer service.
On the other hand, customer retention rate measures the percentage of customers who continue to do business with a company over a specific period of time. A high customer retention rate indicates that customers are satisfied and loyal to the company.
For instance, if a company starts with 100 customers at the beginning of the year and ends with 90 customers at the end of the year, the customer retention rate would be 90%. This metric is valuable for assessing the company's ability to retain and satisfy its customer base.