What is CSAT and How Do You Measure and Use It?

What is the Customer Satisfaction Score (CSAT)?

Customer Satisfaction Score (CSAT) is a metric that gauges how happy a customer is with a specific interaction, product, or service offered by your business. 

CSAT is typically measured through surveys that ask customers a direct question about their satisfaction level. A high CSAT indicates a positive customer experience.

‎How to Measure CSAT

Customer Satisfaction Surveys

To maximize the effect of your survey, focus on getting to the point fast.

Briefly mention the purpose of the survey, ask the core satisfaction question, and start collecting the data.

You can add an open-ended question for detailed feedback, but the key is to keep the survey short and sweet. Also, avoid technical jargon or confusing phrasing.

Make sure your survey design is mobile-friendly to ensure a seamless experience across devices. Also send surveys soon after the interaction to capture fresh experiences.

CSAT Question Types

Do you want to see these surveys in action? Check out these examples:

‎One way to collect quick data for CSAT is by using the Likert scale in your surveys.

When using the Likert scale, you ask a direct question about satisfaction, like "How satisfied were you with your recent experience?"

Then, customers respond by choosing a value on a numbered scale. Popular options include 5-point (very dissatisfied - very satisfied) or 7-point scales.

The higher the point, the higher the level of satisfaction.

Likert scale is an ideal option because it makes it easy for customers to understand and respond to the question quickly.

You can also use emoticons or smiley faces in your customer satisfaction surveys.

You can leverage emoticons as a visual way to represent the rating scale. How?

Emoticons add a touch of friendliness and informality, potentially making the survey more engaging and encouraging participation.

They are also universally understood symbols, allowing customers to quickly grasp the scale and choose their response without reading detailed descriptions. 

This can be particularly helpful for mobile users or those who might struggle with traditional text-based scales, especially for those with language barriers or visual impairments (as long as the emoticons themselves are accessible).

CSAT Survey Sample Questions

💡 Quick Tip: You can create in-app surveys to gauge customer satisfaction with UserGuiding. No coding skills are needed, and you can start collecting data in minutes.

Before creating your survey, make sure to check out these questions targeting specific customer interactions:

Product Purchase:

• "How satisfied are you with the ease of purchasing our product on our website?" (Likert scale: Very difficult - Very easy)
• "On a scale of 1 to 5, how likely are you to recommend our product to a friend?"

Customer Service Experience:

• "How satisfied were you with the recent interaction you had with our customer service representative?" (Emoticons)
• "To what extent did our customer service team resolve your issue?" (Multiple choice: Completely resolved - Partially resolved - Not resolved)

General Satisfaction:

• "Overall, how satisfied are you with [Company Name]?" (Likert scale: Very dissatisfied - Very satisfied)
• "How likely are you to return to [Company Name] for future purchases?" (Emoticons)

Bonus: Open-ended follow-up (For any of the above)

• "Why did you choose this rating?" (Optional, allows for qualitative feedback)
• "Is there anything we can do to improve your experience?" (Optional, allows for specific improvement suggestions)

Customer Satisfaction Formula

Now that your survey is up and running, it's time to calculate your customer satisfaction score! This process has multiple steps, so make sure to follow them carefully:

1. Gather Your Data:

• You'll need the total number of responses you received to your CSAT survey.
• Identify the number of responses that fall into the "satisfied" category. This will typically be the highest rating(s) on your Likert scale (e.g., "satisfied" and "very satisfied" for a 5-point scale).

2. Apply the CSAT Formula:

The CSAT formula is a simple calculation that expresses your satisfaction score as a percentage. Here's the formula:

CSAT Score = (Number of Satisfied Responses / Total Number of Responses) x 100

3. Example Calculation:

Let's say you received 100 CSAT survey responses. Out of those, 62 customers rated their experience as "satisfied" or "very satisfied."

CSAT Score = (62 Satisfied Responses / 100 Total Responses) x 100 = 62%

In this example, your CSAT score would be 62%.

What is a good CSAT score?

There's no single "magic number" that defines a good CSAT score. It can vary depending on your industry and specific goals. However, here's a general guideline:

• Above 80%: Considered a world-class score, indicating exceptional customer satisfaction.
• Between 75% and 80%: Represents a good level of satisfaction, but there's still room for improvement.
• Between 60% and 75%: Indicates an average satisfaction level. Analyze the feedback to identify areas for improvement.
• Below 60%: Suggests potential customer dissatisfaction. Take a closer look at the feedback to address critical issues.

Keep in mind that your ideal CSAT score will depend on the industry benchmarks, your historical performance, and qualitative customer feedback.

How to Use CSAT?

CSAT on its own is just one piece of the puzzle. It may give you a snapshot of customer sentiment, but you need to understand the "why" behind the score.

Still, CSAT is a handy tool to measure customer satisfaction with a specific interaction. What else does CSAT bring to the table, you ask?

Here's a list:

Track customer satisfaction over time

Regular CSAT surveys track customer satisfaction trends over time. 

This allows you to measure the impact of changes made based on past feedback, like a business barometer for customer happiness.

Identify areas for improvement in customer experience

CSAT (especially CSAT surveys) pinpoints problem areas in customer experience. 

The low scores trigger a deeper dive. 

By analyzing the feedback alongside the scores, you can identify specific pain points and take action to address them. 

Benchmark performance against competitors

You can analyze your scores alongside industry benchmarks to find bright spots where you can double down.

Conversely, low CSAT scores expose weaknesses. Use competitor data (if available) to see if they outperform you in specific areas.

By strategically using CSAT, you can identify opportunities to differentiate yourself and deliver a customer experience that outshines the competition.

Keep in mind that industry context is important. A high CSAT in SaaS might be lower than in e-commerce.

Make data-driven decisions for customer retention strategies

We mentioned that low CSAT scores act as red flags, highlighting customers who might be on the verge of churning.

Similarly, you should track CSAT scores after implementing changes based on feedback. 

Rising scores indicate your retention efforts are working, while stagnant scores might necessitate a different approach.

Key Takeaways

To wrap things up, remember that customer satisfaction score (CSAT) acts as a spotlight, illuminating pain points in your customer experience. 

Use this data to prioritize improvement efforts and close the gap between where you are and where you want to be.

You can leverage CSAT to benchmark your performance and identify areas where you can surpass competitors.

Remember, CSAT is most effective when combined with other methods. 

Consider open-ended questions to paint a complete picture of customer sentiment and loyalty.