What is Customer Satisfaction Score (CSAT)?

As a product person, you are in a constant search for ways to improve your customer experience. One metric that can help you do this is Customer Satisfaction Score (CSAT).

Customer Satisfaction Score (CSAT) is a way to measure your customer satisfaction with your product or service. CSAT can be used to measure overall satisfaction as well as different aspects, like support or delivery.

Let's say you have an eCommerce website where you would like to know how satisfied your customer is with the sales process. You can introduce Customer Satisfaction Score (CSAT) survey after the checkout process to ask that.

Another example would be an agency serving customers' websites. You can use Customer Satisfaction Score (CSAT) to discover opportunities to improve websites for your customers.

Measuring CSAT early can give your business insights into where you should focus your effort. As you measure CSAT and implement changes, the score will go up and your business will attract more loyal customers.

How to calculate Customer Satisfaction Score (CSAT)?

You can discover your Customer Satisfaction Score (CSAT) by conducting a survey.

The survey consists of one question: “How satisfied are you with our product?”. If you aim for a specific part of your business, you can substitute the question to be more targeted.

Customers will rate their satisfaction from 1 to 5, where 1 is “Very unsatisfied” and 5 is “Very satisfied”. As you gather responses, you will need to use Customer Satisfaction Score (CSAT) formula to calculate the score.

CSAT = (Number of satisfied customers / Total number of customers) x 100

In CSAT, customers who responded with 4 and 5 are considered to be satisfied.

Imagine that our eCommerce store received 50 responses where 43 customers rated their satisfaction with 4 and above. We will calculate the CSAT score as follows - 43 / 50 x 100. In our example, the score will be 86%.

As per the formula, Customer Satisfaction Score (CSAT) may vary between 0% and 100%. The higher the score, the more satisfied your customers are. A good CSAT score is anything above 75%.

It is important to measure your CSAT score constantly in order to get insights about your growth. Product managers often align CSAT scores with the changes they are introducing to see how these changes reflect on the Customer Satisfaction Score (CSAT).

Conclusions

Just like other customer satisfaction surveys, ​​Customer Satisfaction Score (CSAT) is very important for the success of your product or service. At the same time, you need to understand that it is just a metric that is not able to tell you what, where, and how you should act.

Product managers often combine Customer Satisfaction Score (CSAT) survey questions with follow-up feedback to receive additional information. This allows them to receive additional information from satisfied and unsatisfied customers.

It is important to acknowledge that measuring Customer Satisfaction Score (CSAT) is a constant process and not a one-time deal. While you can get quick wins fast, the true power of CSAT comes with time.