Definition
The Customer Satisfaction Score (CSAT) is a metric used to measure the level of satisfaction of customers with a particular product or service. It is usually measured by a survey asking customers to rate their experience with the product or service they received on a scale of 1 to 5, with 1 being “very dissatisfied” and 5 being “very satisfied.”
The measurement is very popular amongst brands, who ranked CSAT second (39%) behind bookings, renewals, revenue and/or growth (36%) when CX professionals were asked how their organizations measure digital CX improvement in a 2021 CMSWire survey[i].
How is CSAT measured?
You can measure the CSAT by conducting a survey among your customers, asking them to rate their satisfaction level on a scale of 1-5. You can either conduct the survey after a particular interaction, post-purchase, or regularly send a feedback request to your customers. Once you get your customers’ responses, you calculate the CSAT score by adding the number of satisfied customers (4-5 ratings) and dividing the total by the number of responses, multiplied by 100. The higher the CSAT score, the better the customer satisfaction level.
How can marketers and CX professionals use CSAT to measure the customer experience?
Marketers and CX professionals can leverage the CSAT score to improve customer experience by pinpointing the areas of dissatisfaction and taking the necessary steps to improve them. For example, if the CSAT score indicates low satisfaction levels with the customer support team, marketers and CX professionals can work with the support team to address any pain points. Similarly, if customers are unhappy with website navigation or product quality, businesses can make changes to improve their experience.
Other metrics to consider for measuring customer experience:
While the CSAT score is a popular metric, it is not the only metric to consider when measuring customer experience. Other metrics include Net Promoter Score (NPS), Customer Effort Score (CES), and Customer Lifetime Value (CLV). NPS measures customer loyalty, CES measures the ease of using a product or service, and CLV measures the lifetime value of a customer. Marketers and CX professionals can use these metrics in combination to get a complete view of the customer experience.
The Customer Satisfaction Score (CSAT) is a critical metric for marketers and CX professionals as it allows them to measure customer satisfaction levels accurately. This, in turn, can help businesses improve customer experience, increase brand loyalty, and drive revenue growth. Along with other metrics like NPS, CES, and CLV, businesses can get a complete view of customer experience and make data-driven decisions to improve it further.
[i]CMS Wire. 2021. https://www-cmswire.simplermedia.com
Related
- Net Promoter Score (NPS)
- Customer Effort Score (CES)
- Customer Satisfaction Score (CSAT)
- Customer Experience (CX)
Products
Resources
Meaningful Measurement of the Customer Experience (2022) by Greg Kihlström
