Customer Experience Management

Measure and increase customer satisfaction: Tips, best practices and measures to improve customer satisfaction

Measure and increase customer satisfaction
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Measure the degree of Customer satisfaction with the Customer Experience Management platform from QuestionPro and win with the following Tips dissatisfied customers back!

Measure and increase customer satisfaction

Measure customer satisfaction: Make customer experiences measurable as part of your Customer Experience Management!

The Customer Experience Management platform from QuestionPro With innovative survey and analysis tools, offers you the opportunity to measure and ultimately increase customer satisfaction. Because only when you know why your customers are not satisfied can you take appropriate measures to increase customer satisfaction. That means: ask your customers as often as possible. And you can do that with very little effort. Because with QuestionPro set up customer surveys quickly and easily and analyse the data in real time! So you always know where the problem is and where things are going well!

How can customer satisfaction be measured?

Providing your customers with a great customer experience always pays off in sales. Satisfied customers keep coming back to you. You become loyal to your company. A high level of customer loyalty ensures consistent income. If you already meet the bare minimum of customer expectations, then you are well on your way. It goes without saying that it is even better to inspire your customers. But back to the starting point: customer satisfaction. The only way to find out whether your customers are actually satisfied with your company, products and services is to survey them regularly. Customer surveys are the key to measuring customer satisfaction. In the following we describe seven valuable metrics for measuring customer satisfaction that are very easy to implement. Basically, you need nothing more than a web-based platform or software with which you can carry out customer surveys quickly and easily and which has already integrated the relevant question types that you need to measure customer satisfaction without having to put together a laborious questionnaire .

Net Promoter Score (NPS)

In one of our previous blog articles, we already explained the principle of the Net Promoter Score in more detail. The Net Promoter Score (NPS) helps to measure customer loyalty and thus indirectly also to measure customer satisfaction by asking your customers about their willingness to recommend your brand to friends and acquaintances. “If you look at your overall experience with our company, how likely is it that you would recommend our products and services to your family members and colleagues? The answer to the question is on a scale of 1-10, where 10 means that the probability of a recommendation is very high, 1 accordingly rather unlikely. Based on the answer, your customers will be classified into different types:

critic:
Customers who rated you between 0-6 fall into this category and have very little to no customer satisfaction. You are not loyal and likely to be negative word of mouth about your brand. In addition, they will most likely switch to the competition. You will have lost sales if you don't act!

advocate:
These customers have given you 9 or 10 points and are your most loyal customers and have above-average customer satisfaction. You actively promote your brand to your friends and family. You are most likely sure of your advocates' sales, they will love to shop with you time and time again.

Passive:
Customers who rated you between 7 and 8 fall into this category. They won't willingly recommend your brand, but they won't talk badly about it either. Maybe these customers will buy from you again, but maybe also from the competition.

» Here you will find detailed information on the Net Promoter Score

Customer Satisfaction Score (CSAT)

With the Customer Satisfaction Score, similar to the Net Promoter Score, you can very easily measure customer satisfaction with a single question. The question here is: How satisfied are you all in all with our products / services. This question is usually asked after a customer interaction, for example after a support request or another type of interaction between customers and your company. However, initial surveys are also possible by email or when customers log into the customer area on your website. The question about the Customer Satisfaction Score usually has five values, from very satisfied to very dissatisfied.

» Here you can find more information about the Customer Satisfaction Score

Measure customer satisfaction with the Customer Satisfaction Score

Measuring customer satisfaction with the Customer Satisfaction Score: Example of an evaluation. 


Customer Effort Score (CES)

You can also measure customer satisfaction with the Customer Effort Score. This score primarily wants to know how much effort your customers have to put in to achieve a desired goal in their interaction with your company. But from this you can also deduce whether your customers are satisfied or not. Because if customers have to put a lot of effort into achieving a desired goal, then there is a high probability that they will be dissatisfied! Example: A customer searches for certain information on your website. How much time does he invest? How long does a customer wait on hold on your telephone support hotline?

» Here you will find detailed information on the Customer Effort Score

Customer Health Score (CHS)

The Customer Health Score tells you whether your customers will stay with you over time or will migrate to the competition. In contrast to other customer satisfaction metrics, this score identifies behavior patterns over a period of time. It is determined by aspects such as:

  • Product life
  • Product type (license level - free or paid)
  • Number of interactions with your company
  • Money spent on your products
  • Your willingness to reply to your messages
  • etc ...

These are just a few key parameters and they can vary by company and industry. The key is to use these factors to meaningfully classify your customers into loyal customers and customers who will churn, for example when a cheaper opportunity arises to purchase similar products or services. Indeed, determining the Customer Health Score is a little more complex than the other metrics used to measure customer satisfaction. If you are interested in a consultation, please do not hesitate to contact us using the contact form.

Customer Service Satisfaction (CSS)

Customer Service Satisfaction measures customer satisfaction in relation to your service. You can measure the level of customer service satisfaction by gathering feedback from your customers every time you interact with your company about services. You can do this through forms, pop-ups, live chat, online polls, or e-mail surveys. For this you basically only need to ask the same question: "Were you satisfied with our service?" If you keep asking your customers the same standardized question, you can see trends and patterns over time. This will help you identify areas for improvement and prioritize improvements in order to increase overall customer satisfaction.

Customer churn rate (CCR)

The customer churn rate or customer churn rate (CCR) indicates the percentage of customers your company has lost over a certain period of time. Keeping your existing customers is extremely important because it can cost up to seven times more to get new customers. Monitoring your customer churn rate will help you uncover trends that could negatively impact your business and take effective steps to reduce churn. Calculating the churn rate is simple: you start by defining your calculation period, e.g. B. a year. Subtract the number of your customers at the end of the year from the number at the beginning of the year. Divide this result by the number of customers at the beginning of the year to get the CCR. However, you can choose any of the cycles. If you regularly calculate the customer churn rate, you can see trends on a timeline. You will also recognize the huge role customer satisfaction plays for your company, because as customer churn increases, you will inevitably find that customer satisfaction has declined.

Customer reviews on rating portals reflect customer satisfaction

It is extremely important to pay attention to any feedback or rating that you receive through portals, websites or social media channels. The importance of reviews cannot be overestimated. They are a valuable indicator of customer satisfaction! According to a recent study, more than 90% of buyers value product reviews over product descriptions. Review portals like Google My Business are very popular with customers and this is where they get information about products and companies. Make sure you have positive reviews and recommendations online on websites or portals that your potential customers may visit. If you have positive comments or feedback about your products or services, you can ask them to leave a review. If they are happy and satisfied, they will be happy to recommend your company to their friends and acquaintances. QuestionPro supports you in keeping an eye on customer reviews on rating portals, reacting immediately to negative feedback and thus restoring customer satisfaction.


The great customer survey guide from QuestionPro with sample questionnaire

We have summarized everything you need to know about customer surveys in a separate blog article. Including examples and an importable template of a customer survey on customer satisfaction.

» Click here for the blog article Conducting a customer survey.

Important and valuable indicators for customer satisfaction

Achieving a high level of customer satisfaction must be a priority for every company that wants to operate successfully in the market over the long term. What are the most important indicators here?

Number of advocates

Customers who rate customer experiences as “very satisfied” or “extremely satisfied” in their customer surveys or NPS surveys are an excellent indicator of whether your company is actually doing well. If your customers rate you excellent, they will be happy with your customer care teams, your sales, your service, your company's culture, products and services, and your business is most likely doing well. Satisfied customers are loyal customers, which is vital as it is more expensive to acquire new customers than to retain existing customers. Loyal customers are great brand advocates and a significant source of income as they keep buying from you. But knowing that you have satisfied customers is nowhere near enough. Knowing the reasons for the high level of customer satisfaction is key. Even if something definitely works well, you have to know what and why it works in order to either repeat it at other customer touchpoints (customer interaction points), to intensify it and also to observe whether the trend does not develop in a different direction at some point.

NPS benchmarks

NPS benchmarks are critical to knowing where you stand in relation to your competitors in terms of customer satisfaction. No matter how good your result is, there is always room for improvement. Work on it and make sure your competition doesn't outperform you. If your competitors do better than you, study them and their methods to understand what you can do better yourself. You can find a very good overview of NPS benchmarks in this blog article on hubspot.de

Perception of your brand

Perhaps you are promoting your products and services in a certain way that you or your advertising agency believe will be well received by your customers and prospects, but are your customers actually okay with that? There are countless examples of how advertising can be wrong and even go completely wrong. Does your brand's message align with what your customers think? You can easily find out by asking your customers about it. One possibility is to conduct customer surveys that question your engagement in social media in order to understand how customers actually perceive your company and your products or services. When your communication aligns with the perception of your customers, your brand will be perceived as positive. If not, your business will be quickly dropped and customers will churn.

Overall ratings in review portals

An equally important indicator of customer satisfaction are ratings and reviews in review portals such as Yelp, Google My Business or Trip Advisor et al. If the ratings on the relevant rating portals are excellent due to high customer satisfaction, this also has the nice side effect that other customers and interested parties see these positive ratings. It is therefore very important for companies to always keep an eye on the level of customer satisfaction. And if the reviews within a review portal are bad, then you should react immediately to negative comments, ratings and reviews so that visitors to review portals can see that you actually care if something does not go so well. QuestionPro supports you as a web app in the management of your company reputation.

» Here you will find detailed information on the subject of rating portals

The most important reasons for putting customer satisfaction first

Customer satisfaction is crucial to keeping your customers and attracting new customers. Unsatisfied customers are a loyalty risk, and losing them harms your brand. Let's take a look at why customer satisfaction (CSAT) is so important to brand success.

Returning customers generate recurring revenue

Happy customers will likely buy from you again. An easy way to find out is through customer satisfaction surveys. Ask your customers to rate their satisfaction on a scale from 1 to 10 and see who would like to buy from you in the future. Customers who rate you 7 or more are satisfied and will most likely buy from you again. A value of 6 or below is already worrying; these customers are dissatisfied with you and are at high risk of churn. Customers with a rating of 9 or 10 are your biggest advocates and most loyal customers. Use customer surveys to find out how many customers will buy from you in the future.

A high level of customer satisfaction increases your online reputation

If the basic customer satisfaction in your company is high, then there is a high probability that your customers will write positive reviews in review portals such as Google My Business. Positive ratings in review portals inevitably increase your online reputation, because many customers now find out how other customers rate companies, brands, products and services before making a purchase. Get an idea of ​​how customers rate your company and use the web app for reputation management from QuestionProwith which you have central and direct access to reviews and ratings from review portals.

Satisfied customers help you to create innovations

Customers with a high level of customer satisfaction and increased identification with your brands and services support you in creating innovations! Many companies now use a corresponding community for innovation management and invite their customers to actively participate in the generation of ideas and the development of innovations, customers thus have the sublime feeling of being able to participate in product development, which in turn increases customer education and Increases customer satisfaction.

Differentiating factor from the competition

Customer satisfaction is the key to a brand's success or failure. In these competitive times with a huge number of brands, products and services, customer satisfaction must be the focus of your customer strategy. No amount of marketing campaigns and promotions will help you if your customers are not actually satisfied. Brands that have low customer satisfaction are likely to disappear from the market in the future. Brands that have advocates are more likely to outperform the competition. A high level of customer satisfaction is therefore an enormous competitive advantage. You will have brand advocates when you have happy customers.

Reduce customer churn

Contrary to popular belief, a high price isn't the number one cause of customer churn. Yes, you guessed it right; it's customer service. We know some brands that have a large customer base despite their high prices. You can use the customer satisfaction scores and the results of your CSAT surveys to improve your customer service processes. Poor quality in customer service harms you and costs you customers in the long term. Get continuous customer feedback to track your progress in increasing customer satisfaction.

Decrease negative word of mouth

According to a study by McKinsey, a dissatisfied customer tells between 9 and 15 people about their negative customer experiences. Given how many dissatisfied customers you might have, that's a lot of negative word of mouth that will damage your reputation. This has a direct impact on your company's sales and your brand's reputation. Repeat business depends on customer satisfaction, and dissatisfied customers are detrimental to your business. There will always be customer churn, but you don't want to lose customers to bad word of mouth. Regular customer satisfaction surveys will help you measure customer satisfaction and identify factors that could cause your customers to churn.

Retaining customers is cost effective

The cost of attracting new customers is 6-7 times the cost of retaining your existing customers. This shows how important customer satisfaction is. Instead of spending large sums of money on new customer acquisition, you should spend a fraction of it on improving your existing processes and systems in order to solidify customer loyalty and increase customer satisfaction.

Customer satisfaction, loyalty and loyalty

With a high level of customer satisfaction, identification with your company's products and brands also inevitably increases. And a high level of identification with a brand binds customers to your company. These loyal customers make you repeat purchases and make up a large portion of your sales. Losing customers has a huge impact on your company's sales and churn rates. According to a report from Adobe, loyal customers spend 67% more than new customers on reorders, upsells, and so on. If you add the positive word of mouth that your loyal customers give to friends and family, it adds up. Satisfied existing customers feel that they can promote the brand to their loved ones without disappointing them because of the great experiences they have had.

 Consistent sales

Brands that actively focus on customer satisfaction have healthy revenues. You won't lose existing customers and you will have a steady stream of revenue from repeat business. Customer satisfaction and increased sales are directly related. Satisfied customers stay loyal to your brand, keep buying it, and make recommendations to their colleagues, friends, and family. Conduct online customer surveys to determine which areas are negatively affecting customer satisfaction and need improvement. This will help increase customer satisfaction, reduce customer churn and thus keep sales from existing customers stable.

Increase in brand reputation and popularity

Customer satisfaction affects the brand's reputation and popularity. Take a look at customer feedback and find out which areas could be improved to increase the satisfaction of your valuable and important customers. Is it accounting or customer service? Don't be afraid to ask your customers; honest feedback helps identify customer expectations and act accordingly. Famous brands have their own teams and initiatives to improve customer satisfaction, which helps them generate high sales.

You should therefore regularly conduct customer satisfaction surveys

There are several advantages to measuring customer satisfaction. Let's look at some of the most important of them below.

1. Determine the number of loyal customers

Satisfied customers stay loyal and increase sales. They keep coming back when they like a product or service and are satisfied with the service and customer service offered. You can use these key figures to determine your loyal and satisfied customers. You can reach out to dissatisfied customers to find out their reasons and take steps to make them happy.

2. Find advocates and stimulate their willingness to recommend

You can use the Net Promoter Score to find out who your advocates, critics, and passive customers are. You can encourage your promoters to recommend your brand and its positive characteristics to friends and acquaintances or to publish their positive experiences in rating portals. Satisfied customers are the best proponents of your business. For passive customers, you can take steps to encourage them to become advocates. This could be done through discounts, offers, early product previews, various benefits, and so on. It would be helpful if you delved more into the critics by finding out the main reasons for their dissatisfaction and the not-so-positive experiences. This will help improve overall customer satisfaction.

3. Boost your brand reputation

Customers with great experiences may talk to their friends and family about their experience, but those with bad experiences will definitely talk about it. This not only damages your brand's reputation, but also your bottom line. Conducting customer satisfaction surveys can help you identify and address some of these concerns. With so many social media channels available, customers these days can easily post information about their less than good experiences or write bad reviews. You can avoid this by acting in a timely manner and taking the necessary measures to improve their experience and satisfaction.

4. Improve usability and customer experience

By conducting Customer Effort Score (CES) surveys, for example, you can collect quantitative and qualitative data and use these survey results to ensure that you make it fundamentally easier for your customers to interact with your products or your company, and this during future rollouts of Communicate functions or new offers in this way.

Increase customer satisfaction and minimize customer dissatisfaction

It is well known that good news is difficult to spread - in contrast to bad news! So if we encourage the satisfied customers to talk, then we have to deal with the dissatisfied all the more. The ideal case would of course be that we don't have any dissatisfied customers. But wherever people meet, mistakes are made, misunderstandings arise and there are different expectations. So they will always be there, the critics, the dissatisfied. Those who are for a real reason, and the eternally nagging ones too. And there shouldn't be too many of them!

So what needs to be done to calm dissatisfied and critical customers and get them back on track? The briefness of the following text can of course only provide suggestions with regard to your Customer Experience Management. Take action at the so-called touchpoints, i.e. the interfaces between customers and companies, and fill exactly these touchpoints with positive customer experiences to increase customer satisfaction. But what if the child has already fallen into the well? Here are a few tips and suggestions.

In terms of customer satisfaction: act quickly and in a solution-oriented manner!

From my own experience and from the experience of many of my customers and business friends, I would like to make the claim that 95% of all dissatisfied customers are loyal to your company if problems can be solved quickly and satisfactorily. So you should have an appropriate response management in place. If the customer contacts you, don't put them off, you will find ad hoc answers and solutions. Sometimes unconventional too. And before the customer can contact you: contact your customer. Regular satisfaction surveys reveal one or the other hidden frustration in advance. Find out how your customers are feeling at all times! This is active Customer Experience Management and increases customer satisfaction quickly and sustainably.


"For the feedback evaluation of all touchpoints, QuestionPro is a great choice to quickly and easily create questionnaires for obtaining customer feedback and to be able to adapt them "in time". The good price-performance ratio convinced us as well as the first-class support at QuestionPro."


Avoid relay runs for your customers and give your employees decision-making authority!

Nothing is more annoying and humiliating for a customer if he can speak to one of your employees, for example via a hotline or at the information desk, but this employee cannot make a decision and first has to ask a manager, but not the customer himself may forward. For heaven's sake, please never make your customers feel like they are talking to someone who has no decision-making authority and is basically nothing more than a human answering machine. Incidentally, this also causes frustration among your employees themselves! You should also avoid too frequent forwarding and referral to other departments, locations or responsibilities. This also causes frustration and reduces customer satisfaction.

Do not act petty, and certainly not petty!

Often the costs of managing a complaint or complaint process are higher than the value of the item itself. Determine the average costs that a complaint process entails and simply wave off any complaint that is below this amount! Many companies have been practicing this method successfully for a long time. So this method is not only beneficial for your customers because you give them quick relief. It also makes good business sense. Sometimes you can increase customer satisfaction with sheer common sense!

Listen, take your customer seriously. Always and without exception everyone!

Yes, there are complainers and professional critics. And they can rob us of a lot of time, money and the very last nerve. But even these very special customers often have very valuable suggestions and suggestions for improvement to fundamentally increase customer satisfaction. Listen to your Customer Experience Management, because not only good experiences are valuable experiences. And try to make these people happy too. Because they are loud and do not shy away from spending half the day spreading negative or apparently negative experiences. The reader who stumbles across such a negative report in one of the many social networks does not know that the author is a perpetual drummer. We don't have to go to the cross with them, but we have to learn to deal with them.

Empathy - empathize with the customer and create positive feelings!

The American writer and civil rights activist Maya Angelou formulated the following sentence: “I have learned that people forget what they said. But they will never forget what they felt. " Put yourself in the shoes of your dissatisfied customers who have worked hard for every euro they invest in the products and services. Pick up your customers where they are with all their anger and frustration and do everything to ensure that this negative feeling is quickly transformed into customer satisfaction. This sense of contrast has a lasting effect!

Expectations play an important role in terms of customer satisfaction!

Basically, it is a simple formula: with your service, with your products, with your complaint management, with your Customer Experience Management, with your communication behavior, with your speed and friendliness, simply always exceed the expectations of your customers. Conversely, this also means: do not create exaggerated expectations through exaggerated advertising messages! Anyone who has tried in vain for 2 days to reach a person on a hotline, although 24/7 support has been advertised, knows for sure what is meant by that. And then it is understandable when the customer simply lets his displeasure run free. We want to win it back in any case, because customer satisfaction is our top priority!

Reduce waiting times

Longer waiting times significantly reduce the value of customer satisfaction. You can't give your customers excuses such as: B. high call volume, understaffing, vacation season, etc. You need to anticipate such situations and plan accordingly. 

Listen to your customers

Listen to your customers, both satisfied and dissatisfied. Find out what works for you and what is standing in the way of an excellent customer experience. Carry out regular customer satisfaction surveys (CSAT) with the CX management platform and analyse which touchpoints are in need of improvement and how you can actually improve them.

Improve your NPS

The Net Promoter Score (NPS) measures customer loyalty and the willingness of your customers to recommend your products and services to their relatives and colleagues. Conduct NPS surveys to measure your Net Promoter Score. Often times, higher customer satisfaction leads to higher NPS. Having a good NPS is important in understanding how you compare to your competitors. See what your competitors are doing differently or better than you and improve your own NPS. This will help increase your customer satisfaction.

Build a customer community

Setting up communities is a great way to manage customer service, advertising and marketing activities, and respond to customer concerns. Using a community manager improves your social media presence and responsiveness. The community manager can oversee all conversations and make sure that the conversations are moving in the right direction. He can keep an eye on product or service problems and forward them to the team so that they can be resolved in a timely manner. Communities are a great way to collect new product ideas, feedback on existing and upcoming products, and improve customer satisfaction.

Read customer reviews

In addition to the leading social media channels, there are many websites and portals on which customers can submit their reviews, so-called review portals. Watch them or log into these portals to see what your customers are saying about your products and services. For good or bad, try to understand the reasons for these ratings. If they are good, see if you can repeat them elsewhere and improve the CSAT. If they are negative, what are the reasons and what steps can be taken to improve the customer experience? Once you start analyzing this, you can use this data to significantly increase customer satisfaction.

» Reputation management tips and best practices

Key Reasons and Benefits of Measuring Customer Satisfaction

Increased customer satisfaction is reflected directly in more sales. People tend to continue enjoying good experiences. And they tell friends and acquaintances about it! So, if your customers had a great customer experience with your products, services, support, or complaint management, they will likely continue to do so. Customers spend more when trust grows. They gradually become loyal customers who spend 67% more than the new customers. Measuring customer satisfaction and striving to continuously improve it offers tangible benefits. Some of the reasons you should always collect customer satisfaction data:

  • Recognize trends: Surveying your customers about customer satisfaction helps you understand their decisions and preferences and how these decisions result in patterns. Use different question types to get relevant information and avoid survey fatigue.
  • Gain valuable feedback: You will receive honest feedback through direct interaction with your customers. Communicating with them creates trust as they see that their feedback is valued.
  • Increase customer loyalty: Working on the areas of improvement can help fill in the gaps and improve customer loyalty.
  • Reduce acquisition costs: Acquiring new customers costs more money than retaining existing customers.
  • Understand the customer perspective: It is important to know your customers and understand their perspective. Without knowing why they like a particular product or service, knowing their needs and requirements, you cannot deliver an excellent customer experience.
  • Track Feedback Changes: If you have a product or service that has gone through multiple changes or iterations, customer satisfaction questions can help track changes in feedback over time. They help you with actionable insights that have the potential to make a difference.
  • Maintain Promoters: No matter how much you spend on advertising, it will never match word-of-mouth marketing. If you act on the suggestions, customers will take notice and develop a deeper appreciation and loyalty for your brand.
  • Maintain customer loyalty: surveys give the impression that you care about the opinion of your customers and that you want to offer them the best service. If you act on their feedback, they may come back to your brand.
  • Gain a competitive advantage: Your customer satisfaction can help your company stay competitive in the market. If you fail to do that, it should be an alarm signal for the survival of your business.

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