What is a CSAT Score?
CSAT stands for Customer satisfaction score. The Customer Satisfaction Score (CSAT) is a customer loyalty indicator that firms use to determine how happy or satisfy a customer is with a specific encounter or overall experience.
It’s a widely used metric as a key performance indicator for customer service and product quality in many sorts of businesses. While customer satisfaction is a broad notion, CSAT is a more precise metric that is expressed as a percentage. A 100% would be fantastic; 0% would be disastrous.
Why are CSAT scores important?
Measuring customer satisfaction is critical for organizations because it allows them to identify crucial issues in their operations immediately. Analyze and assess consumer interactions. You may use the CSAT to evaluate important customer satisfaction indicators such as overall satisfaction, loyalty, attribute satisfaction, and intent to repurchase.
Here are some points given to explain the importance of CSAT score:
It helps you prevent customer churn proactively
The only way to avoid losing customers is to anticipate their departure. Even today, many people are surprised when customers leave, and in many situations, financial restraints are to blame. Customer dissatisfaction with the firm, on the other hand, remains the major reason for customer churn.
By discussing consumer complaints with you, CSAT surveys help you reduce customer turnover. The easiest approach to find out is to directly ask the consumer. A simple inquiry with clear response possibilities may go a long way toward providing you with the necessary information at the right moment to maintain consumer loyalty.
It helps you increase revenue generation from existing customers
Customer satisfaction surveys provide you with a comprehensive view of your customers’ feelings. It allows you to keep track of their contentment and tell you who is happy with your product, who is really happy with it, and who is unhappy with it. It assists your customer success team in ensuring that your clients’ happiness levels are rising.
When a customer’s satisfaction level rises from unhappy to satisfied, they are far more likely to renew their account the next billing cycle. The increase in income from current customers is closely related to the increase in CSAT score.
It helps in creating customer communities for product UX tests
Customers who have renewed their accounts for more than two years are a great source of product feedback on the user experience and features. They believe in and are devoted to your brand.
Get live input on an impending product or service update by connecting them with community managers, often from your UX and customer success teams. It not only assists you in developing customer-validated features, but it also makes your consumers feel special, important, and heard.
What is a Good CSAT Score
What constitutes a strong CSAT score varies by industry, but the general rule is that it should be between 75 and 85 percent. Because CSAT is based on survey replies, near-perfect scores are extremely uncommon.
If your CSAT is 75%, that means that 3 out of 4 consumers choose a favorable reaction over a neutral or negative one. Whatever your score is, if it continues to rise over time, you’re making smart judgments and should keep doing what you’re doing.
The American Customer Satisfaction Index (ACSI) compares average customer satisfaction levels across ten industries. According to their 2020 statistics, if you score over 80%, you’re doing quite well, regardless of what industry you’re in.
What is a high CSAT score?
Anything around 25% is considered a good CSAT response rate, while 50% or greater is considered an excellent CSAT survey response rate.
What is a positive CSAT score?
In a CSAT scoring scale ranging from 1-5, the number of responses at 4 (satisfied) and 5 (Highly satisfied) are considered as Positive CSAT responses or Positive CSAT scores. A score of 75% represents four in five customers giving you a positive score as opposed to neutral or negative.
What is the average CSAT score?
In a CSAT scoring scale ranging from 1-5, the number of responses at 3 (average or neutral) are considered as Average CSAT Score. The average percentage across all businesses is around 15%. Some organizations have rates of above 40%, but those are usually businesses with a lot of satisfied customers, so it’s not as relevant.
What is a negative CSAT score?
In a CSAT scoring scale ranging from 1-5, number of responses at 2 (dissatisfied) and 1 (Highly dissatisfied) are considered as Negative CSAT responses or Negative CSAT score. A negative score indicates that the company has more detractors than promoters, and a positive score indicates the opposite. Negative feedback is far more valuable than positive feedback, despite the fact that it can be terrible to read.
How to calculate and monitor CSAT score
If you want to figure out how to calculate your CSAT score, you’ll need to know the formula.
Simply said, determining your CSAT score is computing a percentage based on the consumer input you gathered through surveys. The score will range from 0 to 100 because it is a percentage.
Step 1: Add up the number of satisfied responses.
If your clients rate 4 or 5, consider them happy with your brand. So, if 30 clients gave you a 4 on the CSAT scale and 50 gave you a 5, your total is 80.
Step 2: Divide that number by all the responses you received.
Perhaps you received a total of 112 replies to your survey. As a result, divide 80 by 112 to get 0.71.
Step 3: Multiply by 100.
This will provide you with the percentage. As a result, the CSAT score would be 71 in this case.
Formula for CSAT score calculation
CSAT is simply the percentage of all the CSAT survey responses you receive that are positive.
CSAT (%) = (No. positive responses / Total no. responses) * 100
For example, if you had 400 positive responses out of 500 total responses your CSAT score would be 80%.
400 / 500 x 100 = 80%
How to improve CSAT score
If you’re looking to improve your CSAT score, how do you go about it? Here are a few of the suggestions given below:
Knowledge and Training
When your CSAT score falls short of your expectations, it’s usually due to a lack of understanding. Examining negative ratings in further depth for trends and identifying areas where the team may want additional training is a smart place to start.
Discuss your goals
How can your team realize what influence their performance has if they aren’t aware of or reminded of the broader aim they’re working toward? Sharing your CSAT score with other data helps agents understand what factors influence it and how their actions might influence it.
By creating a real-time dashboard for your team, all of your agents will be able to view what’s going on at the team level right now.
Automation of tasks and development of processes
Is there any way to cut down on the amount of time agents spend on particular tasks? Simple procedures and processes may be automated to free up time for busy support staff to focus on more complex enquiries and higher-value clients, where they can contribute more value. Assign tickets to agents based on their skill sets by ensuring that your team is successfully triaging. You might create a chatbot to answer your most popular questions, or you could create a list of template replies to save agents time when a basic request comes in.
Improve your First Response Time (FRT)
CSAT and FRT are inextricably related. Customers want a speedy response; if you keep them waiting, they’ll be less likely to give you a high satisfaction rating, even if you remedy the problem as soon as you talk with them.
You’ll almost certainly notice an improvement in your total CSAT score if you enhance your FRT. Consider changing your schedule or shift patterns to cover the lines during your busiest times, ensuring that all agents are well-trained and confident, and finally, considering new support methods that allow for a speedier response.
High Quality Service
Maintaining a high level of service involves spending time assessing the quality of your team’s dialogues. In team meetings, discuss both good and bad talks on a frequent basis.
Use technologies to allow individual team members to evaluate and grade each other’s chats, ensuring that all customers receive the same quality of care.
Include quality scores in your agent incentive program to encourage good service.
Monitor other KPIs
Other KPIs, in addition to CSAT, can help you obtain a better picture of how your team is functioning and identify areas for development.
KPIs like Ticket Volume and First Response Time (FRT) provide insight into a support team’s effort and can help explain CSAT fluctuations.
Satisfy your customer’s expectations
Customers are likely to have certain perceptions of the services provided by your firm. To keep customers pleased and minimize irritation, provide them with the information they require so that they are not left in the dark. Tell them they’re third in line or give them an estimate of how long they’ll have to wait for a response.
CSAT versus NPS: which is better?
CSAT scores are based on a customer’s most recent support encounter, whereas NPS (net promoter score) measures the likelihood of the consumer recommending the brand/service to others.
CSAT surveys are often conducted quickly after a contact, whereas NPS surveys are typically conducted on a regular basis (e.g. every six months).
For Customer Support teams, the benefit of adopting CSAT over NPS is that it better assesses their contributions.
While NPS may be a better indicator of customer satisfaction with your entire product/service, it is impacted by a variety of factors beyond the Customer Support team’s direct control. Pricing, product performance, customer service, and brand all have a role, and determining the relative value of each may be challenging.
Though they both analyze customer sentiment in different ways, we believe that all Support teams should track CSAT, but NPS is also beneficial for discovering ways to better service your customers’ requirements.
Types of Customer Satisfaction Survey
Customer Satisfaction (CSAT) survey
“A customer satisfaction survey is a data collection project that assesses a person’s happiness or satisfaction with a product or service.”
A basic question with a binary response (e.g., yes/no, happy face/sad face) is commonly included in customer satisfaction surveys. “Did our product do what you intended it to do?” they inquire.
Because these scores are generally high (in the 98 percent range or more), a sudden rise in negative ratings indicates that there is a problem that has to be addressed right away.
Net Promoter Score (NPS) Survey
“The Net Promoter Score (NPS) survey is a customer loyalty and satisfaction metric that is calculated by asking consumers on a scale of 0 to 10 how likely they are to suggest your product or service to others—but there’s a lot more to it than that.”
On a scale of 0-10, consumers are asked to assess how likely they are to suggest your company/product to a friend or partner in a Net Promoter Score survey. The proportion of critics (0-6 responses) is then compared to the percentage of promoters (9-10 answers) to evaluate where your firm stands—the more promoters you have, the more happy customers are with you.
Customer Effort Score (CES) Survey
“Customer Effort Score (CES) is a metric obtained from a customer satisfaction survey that assesses how easy it is for customers to utilize a product or service.“
A Customer Effort Score measures how much effort a customer has to put in to utilise a product or service, discover information, or address a problem. The Customer Effort Score assesses how much engagement consumers must expend to utilize your product or resolve a problem with customer service.
“This form of customer satisfaction survey entails sending a questionnaire to them at critical points in their trip in order to better understand their experience.”
Milestone surveys are surveys sent out at important points along the customer journey to assist in better understanding the user experience. A milestone can be either time-based (e.g., sending a survey 60 days after signup) or experience-based (e.g., sending a survey 60 days after signup) (e.g., sending after onboarding is complete).
Customer Satisfaction Survey Questions
You need to ask the appropriate questions if you want to get useful feedback from your clients. Providing data isn’t always simple, and it’s not the customer’s responsibility to offer constructive feedback to your company. Instead, it is the surveyor’s job to come up with a thought-provoking question that would pique the participant’s interest.
If you’re having trouble determining what to ask your consumers, consider the following sorts of questions for your customer satisfaction survey:
1- Product use questions
When it comes to consumer happiness and success, your company needs to collect feedback on your product or service. If you don’t, assessing consumer demands and providing effective solutions will be more challenging.
Finding out how pleased your consumers are with your offer gives significant information to your marketing and product teams, which can be leveraged to increase client retention.
2- Customer Demographic questions
Because demographics find things simpler for organizations to classify customers into customer personas, demographics are critical for marketing and sales teams. This classification aids employees in visualizing their target audience by classifying clients based on important qualities. The data may then be used by marketing and sales teams to chase prospects that are most likely to be receptive.
Always take a proactive and inclusive approach when presenting these sorts of inquiries. Customers should always have the option to skip these questions if they don’t want to answer them. Your aim is to get honest information from the consumer, but you don’t want to do it at the price of their comfort.
3- Multiple Choice Questions
A participant can only offer a certain number of responses to multiple-choice questions. Because these queries demand less work to respond than open-ended questions, the results are simple to tally up, and you’re more likely to obtain a response from a user (where users need to type in their answers).
Rating scale questions, binary scale questions, nominal questions, Likert scale questions, and semantic differential questions are all examples of multiple-choice questions.
- Rating scale Questions
These are the CSAT questions that give responders a number scale to pick from, such as 1 to 5. During the CSAT score survey, the rating scale provides your audience a choice of options to pick from. This may be used to get feedback on your product, customer service, or new features.
- Binary scale questions
These are the types of CSAT questions that provide responders a choice between two options. A yes or no, or a thumbs up or thumbs down, for example. This may be used when you require a definitive response, such as if your customer received assistance from your customer service staff or whether he discovered what he was searching for in the help article.
- Nominal Questions
Different types of replies are identified by nominal questions. You can’t put a numerical value on the responses since they don’t overlap (unless you add a ‘all of the above’ option).
- Likert Scale Questions
These are the kind of CSAT questions that give participants a 5 or 7-point scale to react on, with 1 being the lowest and 5/7 being the highest. Customers’ feelings about a product are assessed using Likert Scale Questions. The intense emotions are 1 and 7, the moderate emotions are 2 and 4, and the neutral mood is 3.
- Semantic Differential Questions
These questions, like Likert Scale questions, give responders a 5 or 7-point scale, but the semantics of the alternatives are more detailed. It allows the user to select the best response that best expresses their viewpoint.
4- Psychographic questions
Psychographic questions delve deeper into your clients’ interests, habits, behaviors, and inclinations than demographic inquiries. It’s not so much about who your consumer is as it is about why they behave the way they do.
Psychographic inquiries may appear invasive, yet they’re really useful pieces of information that reveal the motivations behind your customers’ purchasing decisions. They’re frequently expressed in terms of your industry, rather than your product. These questions are useful in customer satisfaction surveys since they allow you to infer how you might provide better service to your consumers.
5- Open Text Questions
Open-text questions are surveying questions that enable respondents to provide their answers in a text area. This lets users to completely express themselves rather than relying on the company’s pre-written reply.
While they might take some time to evaluate, these questions encourage individuals them to be honest and transparent while also allowing them to address any issue. When it comes to establishing your clients’ basic beliefs, open-text inquiries may be really useful.
Customer Satisfaction Survey Examples
Example 1 – Uber
Uber has two main spectators: drivers and passengers, and it performs an excellent job of gathering feedback from both. After each journey, passengers rate the drivers, and the drivers rate the passenger as well.
This survey ensures that both the driver and the passenger are treated fairly and transparently, and the scores have an impact on both sides’ reputations. The driver has the ability to refuse a booking if a customer has a lower rating. Create a survey for each of your intended audience if you have more than one.
Example 2 – Netflix
Netflix gives personalized entertaining suggestions to its users, which would not be feasible without a thorough grasp of client happiness.
Overall, when it comes to customer service, Netflix is at the top of its game. It is as customer-friendly as it gets, thanks to its recommendation system. Netflix analyses all of its users’ behavior and suggests movies and episodes based on their ratings, likes, and dislikes, or just what they’ve been viewing. It also solicits comments on a regular basis in order to enhance its services.
Netflix is attempting to gain a better understanding of its users’ actions and preferences through a poll. This demonstrates that even if you have market dominance, such as Netflix does, you should not rest on your laurels. Continue to get input from your clients and users, and don’t be hesitant to go specific in order to fully comprehend their requirements.
Example 3 – Skype
Skype, a company known for its communications technology, is another example of a product that delivers excellent customer service. If you use Skype to call someone, you’re probably aware that it asks for review after each call. But, more importantly, it believes in quickly resolving consumer issues.
Skype asks for opinions on the call quality in a form. It’s only three questions long, and the shorter the better when it comes to surveys. It also allows users to swiftly respond to queries by providing many options rather than requiring them to type out a response (though they have that option, too).
In this three-question customer satisfaction survey, Skype gets right to the point. Furthermore, by simply asking about “Audio Issues” and “Video Issues,” it maintains the focus on the product. Try asking specific product performance questions, then leaving a vacant text box for users to clarify, if you sell a product where consumers could have concerns.
Example 4 – McDonalds
McDonald’s is a fast-food chain that understands how to appeal to its clients, employing various tactics in different nations throughout the world. Incentive-based feedback is one way it measures success.
The labeled receipt on the McDonald’s survey was one element that stood out. The component is emphasized so that participants understand what McDonald’s is asking them in the survey. This not only ensures that McDonald’s receives correct data from the survey, but it also decreases consumer friction if they are unclear or confused about a subject.
What are the Disadvantages of Customer satisfaction?
There are some disadvantages of Customer satisfaction, given below:
CSAT relies on your customers spending the time to complete the survey. Clearly, not all consumers feel the same way, so you’ll never get a complete picture of how everyone feels. Those that reply are frequently on either extreme satisfaction or satisfaction scale and are either highly happy or very unhappy. That is, you aren’t constantly looking for people who are lying satisfied or somewhere in the center. It’s a good idea to check your number of respondents and strive to get as many clients to react as feasible.
Customers might misread satisfaction questionnaires, and the score they provide is not always an accurate picture of how they feel. Here are a few examples: the customer may use the survey to grade the brand as a whole rather than just one contact, or they may be irritated by how difficult it was to reach someone while receiving excellent service. With the latter, Customer Effort Score (CES) is an important health measure to examine when determining how simple it is for your consumers to receive support.
Online surveys are trying to flood customers. Although surveys are straightforward to complete, some individuals just do not enjoy doing them. Customers may become irritated if you send surveys too frequently, and this can lead to customer fatigue. Despite your reputation for offering exceptional products or services, customer fatigue might result in low response rates or worse satisfaction scores.
We live in a high-tech world where we are bombarded with undesired junk email, email solicitations, and sales calls on a regular basis. It’s difficult for your consumers to think that they aren’t being monitored whether they do an online survey, a phone survey, or any other sort of survey. Customers nowadays are afraid to give up information that might lead to additional junk emails and unwanted calls due to their fears of disclosing sensitive information. Assure clients that any information they supply in response to your customer feedback surveys will be kept private. It may be difficult to have a good response rate without this disclaimer.
Is customer satisfaction a KPI?
Customer satisfaction is one of several key performance indicators (KPIs) that businesses track on a regular basis, whether for-profit, nonprofit, public, or private. Your customer satisfaction KPI is akin to a marker for your company; enhance it, and you’ll boost the condition of your company as a whole.