Understating CSAT Score

The Customer Satisfaction Score (CSAT) is a key performance indicator that measures customer satisfaction with a product, service, or experience. It is one of the simplest and most straightforward feedback metrics used by businesses to evaluate how satisfied customers are with specific aspects of their experience.

How CSAT is Measured

CSAT is typically measured by asking customers a single question: "How would you rate your overall satisfaction with the [product/service] you received?" Respondents are asked to rate their satisfaction on a predefined scale. This scale can vary but commonly ranges from 1 (very unsatisfied) to 5 (very satisfied). Sometimes, the scale may have more points, such as from 1 to 10, or use different terminologies like stars or happy-to-sad face icons.

Calculating CSAT Score

The CSAT score is calculated by taking the sum of responses showing satisfaction and dividing it by the total number of responses, then multiplying the result by 100 to get a percentage.

Uses of CSAT

CSAT scores provide instant feedback about how customers feel about a recent interaction or purchase. They are widely used across various touchpoints and interactions to measure:

• Satisfaction with a purchase

• Customer service interactions

• User experience on a website or app

• Effectiveness of a product or service

Advantages and Limitations

Advantages:

• Simplicity and clarity: CSAT is easy to implement and understand, making it popular for measuring specific transactional customer interactions.

• Immediate feedback: It provides immediate insights into customer satisfaction, allowing businesses to quickly identify and resolve issues.

Limitations:

• Lack of depth: CSAT does not provide deep insights into the reasons behind customers' feelings, requiring follow-up questions for more detailed understanding.

• Not predictive: It does not predict future behaviors such as the likelihood of customer retention or repeat purchases.

CSAT is particularly effective when combined with other metrics like NPS and Customer Effort Score (CES) to provide a comprehensive view of customer experience and loyalty.