CUSTOMER SATISFACTION SCORE

What is Customer Satisfaction Score?

The Customer Satisfaction Score or the CSAT is a standard, yet common business metric. The main aim is to measure how satisfied a customer is with your brand’s products, services or with customer service interaction. 

There are three scales to measure a customer’s satisfaction. It is as follows: 

  • 3 point scale.
  • 5 point scale.
  • 10 point scale.

A survey will ask respondents using verbal indicators as follows: “very unsatisfied,” “unsatisfied,” “neutral,” “satisfied,” and “very satisfied”. You can also use emojis or rating stars as indicators.

The CSAT score is used to measure customer loyalty and used to improve customer experiences at key touchpoints. The customer satisfaction score can understand the impact of both happy customers and unhappy customers.

To create an interactive CSAT survey with Merren, a customer feedback tool. Sign up for a 14 day free trial here.

How do you calculate customer satisfaction scores?

Here is how you can calculate your CSAT score. 

Create a customer satisfaction survey:
Design a survey with Merren for free here

You can use the 5-point rating scale to measure the number of satisfied customers for a numerical scale. 

On a scale of 1 to 5, label your survey as follows: 

1: Very Unsatisfied.

2: Unsatisfied.

3: Neutral.

4. Satisfied.

5: Very Satisfied. 

Merren offers pre-labeled scales when you design a survey to measure CSAT Score. 

Distribute the survey:

Start collecting responses via interactive channels at various touchpoints. More responses help you get accurate scores. 

Calculate the results: 

Calculate the CSAT Score with the following formula: 

CSAT = Number of satisfied customers 

            ——————————————-   x 100

            Total number of respondents 

Example: You have 100 respondents. 80 respondents rate themselves as either “satisfied” or “very satisfied,”. Your CSAT score will be 80%.

Further reading: how to improve your CSAT score in B2C business.

Which is better, CSAT or NPS?

Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS) are essential metrics for evaluating customer experiences. 

What are CSAT and NPS metrics?

CSAT measures customer satisfaction with specific services or products by asking customers to rate their immediate experiences. 

NPS measures long-term customer loyalty and the likelihood of customers recommending the brand to others. It categorizes respondents into promoters, passives, or detractors. 

Areas of highlight:

  • CSAT used to highlight areas of improvement in particular interactions or touchpoints.
  • NPS provides brands with broader, high-level insights into overall customer sentiment. It is a long-term measure of customer sentiment. 

Areas of application: 

  • CSAT is ideal for short-term performance evaluations, such as assessing satisfaction immediately after a customer service interaction. 
  • NPS is used to track long-term customer loyalty trends, offering a holistic view of customer sentiments for strategic decision-making. 

Converting one metric into the other is not advisable. They measure different aspects of customer experience. 

In summary, both CSAT and NPS are valuable tools for understanding customer satisfaction and loyalty. Read more about it here: CSAT vs NPS.

What are the 5 customer satisfaction scores?

There are 5 commonly used customer satisfaction metrics used in the customer experience protocol. 

  • Customer Satisfaction Score (CSAT): CSAT measures how satisfied customers are with a company’s product, service or in a B2C interaction. Customers have to rate the level of satisfaction on a scale. The scale can be a 5-point rating scale or a 10-point rating scale. The scale converts the responses into a percentage with a formula.
  • Net Promoter Score (NPS): NPS measures customer advocacy by asking how likely customers are to recommend a company to others on a scale of 0 to 10. The formula subtracts the percentage of detractors (scores 0-6) from the percentage of promoters (scores 9-10).
  • Customer Effort Score (CES): CES measures the ease of customer interactions with a company. Customers are asked to rate the amount of effort they had to put in to get their issue resolved. It is mapped on a 5-point rating scale or a 7-point rating scale. Read more about Customer Effort Score scale here
  • Customer Lifetime Value (CLV): CLV estimates the total revenue a business can expect to generate from a single customer over their lifetime in the business. It measures the long-term value of customers with regards to their order value and purchase frequency. Read more about CLV here.
  • Churn Rate: Churn rate measures the percentage of customers who stop using a company’s products or services. A high churn rate can be influenced by a number of factors. It denotes dissatisfaction or potential issues with customer retention.

To design an interactive customer feedback survey with Merren, sign up for a 14 day free trial here.