Customer Satisfaction Score (CSAT)

Definition

Customer Satisfaction Score (CSAT) is a commonly used metric in customer support and success to gauge the overall satisfaction of customers with a product, service, or a specific interaction or transaction. It is typically measured using a short survey where customers rate their satisfaction on a scale, often from 1 (very unsatisfied) to 5 (very satisfied).

Importance

CSAT is crucial as it provides direct feedback from customers about their experiences and satisfaction levels. High CSAT scores indicate happy customers, which can lead to increased customer loyalty, positive word-of-mouth, and higher retention rates. Conversely, low CSAT scores can signal problems that need to be addressed to improve customer satisfaction and prevent churn.

Calculation

CSAT is calculated by asking customers to rate their satisfaction on a scale (usually 1-5). The scores are then averaged to give the overall CSAT score. For example, if you have five customers who rate their satisfaction as 5, 4, 3, 4, and 5, your CSAT score would be (5+4+3+4+5)/5 = 4.2 out of 5.

Example

For instance, after a customer support interaction, a company might send a survey asking the customer to rate their satisfaction with the support they received on a scale of 1 to 5. If most customers rate their satisfaction as 4 or 5, the company can conclude that their support team is doing well. If many customers rate their satisfaction as 1 or 2, the company knows they need to make improvements.

Best Practices

1. Send CSAT surveys promptly after interactions while the experience is still fresh in the customer’s mind. 2. Keep the survey short and simple to encourage participation. 3. Use the feedback to identify areas for improvement and implement changes. 4. Don’t just focus on negative feedback; positive feedback can highlight what you’re doing right and should continue doing.