What is Customer Satisfaction Score (CSAT) and How to Measure It

by time news

2023-09-11 11:05:34

You know you should measure customer satisfaction, but choosing the right methodology can be overwhelming. So where do you start? To make your choice easier, we’ve covered one of the most popular types of satisfaction surveys below: the Customer Satisfaction Score (CSAT). We’ll discuss what a CSAT survey measures, when to use it, and how to take advantage of it.

What is Customer Satisfaction Score (CSAT)?

The Customer Satisfaction Score (CSAT) measures customer satisfaction with a business, purchase, or interaction. It is one of the simplest ways to measure customer satisfaction and is obtained by asking a simple question, such as “How satisfied are you with your experience?” To answer, there is a corresponding survey scale, which can be 1 – 3, 1 – 5 or 1 – 10.

Customer Satisfaction Score Calculation

A CSAT score is the sum of all positive responses, divided by the total responses collected, and then multiplied by 100. The result gives you the overall percentage of satisfied customers at your company.

For example, if you received 25 total answers and 15 of them were positive, your CSAT score would be 60% (15 positive responses/25 total responses = 0.60 x 100 = 60%).

This indicates that most people are satisfied with your offer, but it also highlights that there is much more room for improvement.

These estimates can be extracted from surveys. If the resulting number is not satisfactory, it is easier to decide to reflect and remedy the experience you provide to your customers. To help with that process, you can track customer satisfaction throughout the entire customer lifecycle very easily using the customer satisfaction score.

Since it’s a quick survey, you can take it across multiple experiences during a customer journey and get an overview of how your customer is feeling at various touch points along the way. This makes it easier to find potential bottlenecks and improves the customer experience.

What is a good customer satisfaction score?

While CSAT scores vary by industry, a good score typically falls between 75% and 85%. Since CSAT only measures your clients’ scores, it’s difficult to get a near-perfect score. Having a score of 75% means that three out of four customers gave you a positive score instead of a negative or neutral one.

When should you use customer satisfaction scoring?

After Customer Lifecycle Moments

Ideal for: During the onboarding and post-purchase stages.

CSAT links customer satisfaction surveys to key moments in the customer experience. That way, you can connect your customer insights with business questions and measure the effectiveness of key moments like user onboarding.

The best time to send a customer satisfaction survey is after a significant part of the customer life cycle has been completed. For example, sending a satisfaction survey at the end of a customer onboarding will help you capture valuable feedback on how to improve the onboarding experience.

At this point, the customer has likely already decided whether or not your solution solves their problem, and if it doesn’t, you need to know as soon as possible.

Before renewal

Best for: Six months before subscription renewal.

The six-month mark gives you enough time to act on feedback before moving to the renewal phase of the client’s subscription. You can always do something about a problem you know about, but you can’t do anything about a problem you don’t know about.

You can also activate CSAT surveys on a time-based schedule.

Because of the simplicity of customer satisfaction scoring, it’s easy to conduct this survey multiple times and at multiple touchpoints (not simply at the end of important experiences).

For this reason, it is important to ask the question frequently and on an ongoing basis.

Implementing customer satisfaction surveys on an ongoing basis will keep the feedback loop constant. The technology available makes it easier. This way, you’ll get a sense of people’s feelings when you’re not launching products or doing something different.

Most companies do this after releasing features or on a controlled schedule, which will influence responses.

After informational or customer service interactions

Ideal for: after customer demonstrations, troubleshooting and follow-up.

Finally, the customer satisfaction score can be used directly after customer service or customer information touchpoints.

For example, asking a single satisfaction question after a customer finishes reading a knowledge base article can help you evaluate its effectiveness.

In short, you can use CSAT surveys any time you want to measure customer sentiment: during the sales process, while they use the product, or while they interact with your content.

However, due to the nature of the question, the answer will lean towards the customer’s immediate experience and reaction. Therefore, these findings should not be taken as information about the broader customer experience or brand perception.

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