Customer
Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT) is a metric used to quantify the degree of customer satisfaction with a product or service at a specific interaction or overall experience. It's often collected through direct surveys with questions rated on a scale.
HOW TO MEASURE
CSAT is typically measured by asking customers to rate their satisfaction on a scale (e.g., 1 to 5 or 1 to 10), where the highest number represents the highest satisfaction. The score is then averaged to provide a metric that reflects overall customer satisfaction.
HOW TO IMPROVE
Quick Resolution of Issues: Ensure customer support is responsive and effective at solving problems.
Personalized Interactions: Tailor customer interactions to individual needs and preferences.
Product Quality and Reliability: Continuously improve the product to meet or exceed customer expectations.
Customer Feedback Loop: Regularly gather and act on customer feedback to make informed improvements.
Employee Training: Enhance customer-facing employees' skills to improve interaction quality.
FORMULA
CSAT=( Sum of satisfaction scores/Total number of responses )×100%
EXAMPLE
If a software company surveys 100 customers asking them to rate their satisfaction on a scale of 1 to 5, and the responses sum up to a total of 400, the CSAT score would be: (400/100)×100%=4.0. This score indicates an average rating of 4 out of 5, or 80% satisfaction.
DEPARTMENT USAGE
Customer Success: Uses CSAT scores to enhance customer service strategies and reduce churn.
Marketing: Leverages customer satisfaction data to promote brand strength and attract new customers.
Product: Guides product development by highlighting areas needing improvement based on customer feedback.
Leadership: Monitors customer satisfaction as a key performance indicator for business health.
The CSAT metric is essential for gauging customer happiness and loyalty, guiding business strategies, and improving products and services based on direct customer feedback.
View the collection of Metrics Workshops.