Feb 28, 2023


Min Read


Divya Kandwal

What is CSAT score? (customer satisfaction score)

CSAT score

what is csat

customer satisfaction score

“How satisfied are you with our product?”. Unless you live under a rock, you must have come across and answered this question. This question is so common that you often answer it on autopilot (this isn’t a bad thing, per se). Companies use this- customer satisfaction score (CSAT score) to measure and improve customer satisfaction across important touchpoints of the customer journey.

What is customer satisfaction score or CSAT? meaning and definition

CSAT or Customer Satisfaction is a common key performance indicator (KPI) used to track how satisfied customers are with your company’s product/ service. 

The question is phrased as-

“How would you rate your satisfaction with [name of your company]?”

Respondents choose their rating from a 5-point scale where, 

1= Very unsatisfied

2= Unsatisfied

3= Neutral

4= Satisfied

5= Very satisfied

You can measure CSAT at any touchpoint but usually, companies send CSAT surveys

  • After a support interaction 
  • Post sale 
  • Quarterly or bi-annually

CSAT is one of the main CX metrics. The other- Net Promoter Score (NPS) and Customer Effort Score (CES) are used in tandem with CSAT to gain a deeper understanding of customer behavior and experience.

How do you calculate customer satisfaction (CSAT) score?

Customer satisfaction score (CSAT) is simply the percentage of satisfied customers. It is calculated by dividing the sum of all positive responses by the total responses and then multiplying it by 100. 

On the CSAT scale, 

1 and 2 are considered negative responses

3 is neutral, and

4 and 5 are positive responses

CSAT only takes positive responses (that’s respondents who gave 4 and 5 ratings) into account.

For instance, out of 1000 respondents, 300 customers rate your service 4 and 300 rate you 5, then the CSAT score will be-

(300+300/1000) X 100= 60%

Tracking CSAT over time is a great way to ensure that you are continuously improving your customer experience. 

What’s the difference between CSAT, NPS, and CES?

Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and Customer Effort Score (CES) are the three most common CX metrics used by companies around the world. Each has its strength and weakness. But used together, they show you an accurate picture of what’s going on with your customers.  

CSAT, as we’ve discussed measures customer satisfaction with your product or service. It’s a great customer service metric for understanding the efficiency of your service team. 

NPS or Net Promoter Score measures customer loyalty. The question you ask is- 

“How likely are you to recommend us to your friends and family?” 

You can use it after an interaction (sale, support call, subscription renewal) or periodically. Companies send NPS surveys quarterly or bi-annually (also known as Relationship NPS) to track year-on-year improvement in customer loyalty and CX. 

Relationship NPS, unlike CSAT, correlates strongly with revenue and is used to track and predict financials. 

CES or Customer Effort Score measures how easy it was for your customer to transact with you. CES is a purely transactional metric. You can send a CES survey after the first sign-up, purchase, service interactions, etc. It works on the logic that the easier you make it for your customers to interact with you, the happier they will be. 

It’s measured on a 7-point scale, with the question-

“How easy was it to resolve your issue with [your company’s name]?”

How do you use CSAT survey?

CSAT score, like any other metric, is only a number. Like we always say, measuring CSAT is not a data collection exercise. What you do with CSAT to improve satisfaction and revenue is what really matters. 

Measuring CSAT doesn’t improve CX and revenue. Acting on the insights gained from measuring CSAT improve CX and revenue.

And it starts with setting strategic goals. 

Step 1- Set realistic CSAT score goals

Why do you want to measure CSAT? Having strategic and realistic goals is the first step for starting any customer satisfaction management program. Usually, companies measure CSAT to-

  • Improve customer satisfaction year-on-year
  • Find satisfaction gaps in your customers’ interactions with the service team
  • Monitor and improve the efficiency of the support and service agents
  • Improve satisfaction at a critical touchpoint (such as renewal for the insurance industry)
  • Benchmark against competition

Having a (or several) goals for your CSAT program sets you up for success from the very start.

Step 2- Decide when and how to send CSAT surveys

Map critical touchpoints of the customer journey. The great thing about CSAT is that it’s flexible and can be used at multiple touchpoints. Some of the most common touchpoints where CSAT works extremely well are-

  • After a customer makes a purchase 
  • After a support interaction
  • Store visit
  • Post renewal of a subscription
  • After-service interaction (for consumer durables, automobiles)
  • After a customer raises a complaint, etc

You can send CSAT surveys as email, SMS, or even as pop-ups on your app/ website.

Step 3- Analyze and report drivers of CSAT score 

You’ve started sending out CSAT survey and the feedback is pouring in. You’re now collecting relevant customer feedback data. But what do you do with it? The obvious answer is- you analyze and report this data. Having a process mapped out helps make sense of the chaos that customer data usually is.

At Numr CXM, we use machine learning and advanced analytics to uncover what is driving the CSAT score. This shows you what you need to fix to quickly improve CSAT and get the most bang for your buck. Ensuring that everyone in your organization has access to these insights fosters a culture of customer centricity. It also ensures that all stakeholders have a clear picture of what’s going on with your customers. We do this through role-based, real-time dashboards to prioritize action and improvement. 

To sum up, we turn chaotic CSAT data into deep insights that will improve satisfaction and revenue.

Step 4- Close the loop to transform CSAT insights into action 

Take these CSAT insights and use them to develop strategic action plans. This is done through an alert management system (AMS). There are many types of AMS but Numr AMS works like this-

  1. We raise a ticket whenever a negative CSAT survey comes in
  2. A notification is sent to the relevant team member
  3. The team member follows up with the customer to understand what went wrong
  4. They close the ticket once the issue is resolved. 

You can set up relevant thresholds and trigger points. For example, you may want to set up triggers that prioritize high-value customers over others. 

You can also use CSAT insights to improve business processes and overall experience. For instance- if a lot of customers seem dissatisfied with onboarding, finding gaps and improving the overall process will improve satisfaction at scale. 

Finally, let your customers know that you’ve taken their feedback into account. Tell me what you’ve done and how things will be different to gain their loyalty. 

Customer satisfaction score- the path to growth 

Improving customer satisfaction is how you grow your business organically. This is why 80% of companies use CSAT scores to analyze customer experience and improve it. The more satisfied your customers are, the happier and more loyal they’ll be. At the end of the day, loyal customers are a superpower that set your business apart from the competition. 

Want to improve customer satisfaction, experience, and revenue? Contact us and we'll do the heavy lifting for you.

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