Happy customers fuel your success and become your most potent advocates. 80% of customer service companies rely on a key metric, the CSAT score (Customer Satisfaction score), to quantify and enhance customer satisfaction. Often shrouded in acronyms, this metric is pivotal in understanding and improving customer experiences.
What Is a CSAT Score
A CSAT score, or Customer Satisfaction score, is a quantifiable metric used to evaluate customers’ satisfaction with a specific interaction, product, or service a company provides. It serves as a numerical indicator of customer contentment, enabling businesses to gauge the success of their customer-centric efforts.
Measuring the CSAT Score
Measuring the CSAT score involves a systematic approach to gathering customer feedback and calculating their satisfaction levels. Here is a step-by-step guide on how it’s done:
- Designing the Survey: Design a CSAT survey tailored to your objectives. Keep the questions concise, focused, and easy to understand. Most CSAT surveys use a simple rating scale, often ranging from 1 to 5, with higher numbers indicating greater satisfaction.
o 1 = Very Dissatisfied
o 2 = Dissatisfied
o 3 = Neutral
o 4 = Satisfied
o 5 = Very Satisfied - Selecting the Right Questions: Choose questions that directly relate to the aspects of your product, service, or interaction that matter most to customers. Common CSAT questions include variations of “How satisfied are you with [ product/service/interaction ]?” or “How would you rate your experience with [company]?”
- Distributing the Survey: Decide when and where to distribute the CSAT survey. It can be sent immediately after a customer interaction, through email, on a website, or within a mobile app. The timing should align with the customer’s experience to capture the most accurate feedback.
- Collecting Responses: Customers’ responses are collected and recorded as they engage with the survey. Some businesses use automated survey tools to streamline this process and efficiently analyze the results.
- Calculating the CSAT Score: To calculate the CSAT score, you sum up the numerical ratings provided by customers and then determine the average. This average score represents the overall customer satisfaction.
Example of CSAT Score Calculation
To illustrate the calculation of a CSAT score, let’s consider a hypothetical scenario. You run an e-commerce platform and decide to measure customer satisfaction with the recent shopping experience. Using a CSAT survey with a scale from 1 to 5, you collect responses from 120 customers who made purchases in the past month.
- 40 customers rated their satisfaction as 5 (Very Satisfied)
- 30 customers rated their satisfaction as 4 (Satisfied)
- 15 customers rated their satisfaction as 3 (Neutral)
- 25 customers rated their satisfaction as 2 (Dissatisfied)
- 10 customers rated their satisfaction as 1 (Very Dissatisfied)
To calculate the CSAT score, you would:
- Add up all the sums of the 4 (Satisfied) and 5 (Very satisfied) responses only. Research has demonstrated that utilizing only the top two highest values provides the most accurate prediction.
30 + 40 = 70 - Divide the above sum by the total number of responses.
70/120 = 0.58 - Then multiply the result by 100 to get your CSAT percentage.
0.58 x 100 = 58%
In this example, your CSAT score would be 58%.
Interpreting CSAT Score
Typically, a CSAT score falling within the 75 to 85 percent range is often deemed satisfactory, while surpassing the 90 percent mark is considered outstanding. However, it’s important to note that this figure carries a degree of subjectivity. Interpreting CSAT scores is vital for making informed decisions and improving customer satisfaction. Here’s how to interpret CSAT scores effectively:
Benchmarking: To understand the meaning of a CSAT score, it’s essential to benchmark it against industry standards or your company’s historical data. This comparison helps you assess whether your customer satisfaction levels are above, at, or below average.
Segmentation: Consider segmenting your CSAT scores by specific criteria, such as product lines, customer demographics, or geographic regions. This segmentation can provide insights into which areas of your business are performing well and where improvements are needed.
Feedback Analysis: Alongside numerical scores, analyze the qualitative feedback customers provide. Customer comments can offer valuable insights into the reasons behind their satisfaction or dissatisfaction. Look for recurring themes and areas for improvement mentioned by customers.
A well-structured sales approach aligns with delivering top-notch customer experiences can lead to higher CSAT scores. REVVD‘s expertise can help your business achieve this synergy, ensuring that satisfied customers become the result of your efforts and the driving force behind your success.
