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What is CSAT?
Customer Satisfaction Score (CSAT) is a metric used to measure how satisfied customers are with your product or service. It is usually measured by asking customers to rate their satisfaction on a numerical scale or a Likert scale, often ranging from 1 to 5 or 1 to 10.
The CSAT survey question typically asks customers to rate their satisfaction with a specific interaction or experience, such as a customer service interaction, a purchase, or a website visit. The responses are then aggregated to calculate the overall CSAT score.
How is CSAT different from CES & NPS? 👇🏼
NPS, CSAT & CES are all customer experience metrics that are used in different places of your customer journey 🚀. Here’s how they are different from each other 🔽
✅ What do they mean?
NPS
Measures customer loyalty and willingness to recommend your product to others.
CSAT
How satisfied were they after trying out a feature or performing an action on your product?
CES
How much effort a customer had to put in to resolve an issue or achieve a goal.
✅ Type of indicator
NPS
Lagging Indicator
CSAT
Leading Indicator
CES
Leading Indicator
✅ How are they measured?
NPS
NPS is measured by asking customers a single question →
"On a scale of 0 to 10, how likely are you to recommend our product/service/brand to a friend or colleague?”
CSAT
CSAT is typically measured using a scale of 1 to 5 or 1 to 10, with a high score indicating high satisfaction and a low score indicating low satisfaction.
CES
CES is typically measured using a scale of 1 to 5, with a low score indicating high effort and a high score indicating low effort.
✅ What are they focused on?
NPS
It points to the overall experience of your product.
CSAT
Getting feedback on satisfaction over a single feature or interaction in your product.
CES
Getting an understanding of effort required over a single feature or a single customer interaction in your product.
✅ What is the level of specificity
NPS
Willingness to talk and recommend the product to the people they know.
CSAT
It can be incredibly specific on a certain action or feature on your product.
CES
It can be very specific on a certain action or feature on your product.
✅ What does it fundamentally solve for?
NPS
Will they encourage others to use the product or stay away from the product?
CSAT
Did it meet customer expectations?
CES
How easy is it to use?
Btw we also breakdown business models and create growth strategies for them. Our most famous ones are the Zepto Business Model & Meesho Business Model breakdowns.
We also create loaded templates 💪🏼 to make your life as a growth operator easier.
How do you measure CSAT?
Customer Satisfaction Score (CSAT) is typically measured through a survey question that asks customers to rate their satisfaction with your product on a numerical or Likert scale. The survey question may ask customers to rate their satisfaction based on a recent interaction or experience, or on their overall satisfaction with your product.
Here's an example of a CSAT survey question 👇🏼
"On a scale of 1-5, how satisfied were you with your recent purchase/service experience?"
- Very Dissatisfied
- Somewhat Dissatisfied
- Neutral
- Somewhat Satisfied
- Very Satisfied
Customers select the response that best represents their level of satisfaction, and their responses are then tallied and used to calculate the overall CSAT score.
To calculate the CSAT score, the number of satisfied customers (those who rated their satisfaction as 4 or 5) is divided by the total number of respondents and then multiplied by 100 to get a percentage.
What is a good CSAT score for your product?
Customer Satisfaction Score (CSAT ) is highly contextual and varies across industries and organizations, so it is challenging to define a universally "good" CSAT score.
However, a good CSAT score is typically considered to be above 80% or 4 out of 5 on the scale.
It is crucial to set your own benchmarks and track CSAT scores over time to monitor trends and improvements. Comparing CSAT scores with industry averages or competitors can also provide valuable insights into your overall performance.
Why should you measure CSAT?
1. Measure the impact of changes 🦿
Measuring CSAT over time can help you understand how changes to their products and it’s features are affecting customer satisfaction. This can help you make informed decisions about where to invest resources to improve the customer experience.
2. Measure customer loyalty 🫂
Satisfied customers are more likely to become repeat customers and recommend your product or brand to others. Measuring CSAT can provide insights into customer loyalty and advocacy, which can be important metrics for assessing the long-term health of a business. Since it is also a leading metric, it can help you get a prediction of your NPS metrics even before you calculate them.
3. Benchmark against competitors 🥷🏼
Measuring CSAT can help you benchmark your performance against competitors in the industry. This can provide you deep insights into how your product/ company is performing relative to its peers and identify areas for improvement 🚀
What are some metrics that directly affect CSAT?
CSAT paints a bigger picture of the overall customer satisfaction with your product or service. But there are some even smaller leading metrics that will help you understand CSAT in depth.
Response time ⏱️
The speed at which customer queries or issues are addressed is significant. Faster response times lead to higher CSAT scores, as customers feel valued and supported. It’s not just about solving issues quicker. You also need to make sure your customers feel heard when they come to you with a problem/ query.
First Contact Resolution (FCR) rate 📈
FCR measures the ability of a customer support team to resolve an issue during the first customer contact. Higher FCR rates indicate efficient problem-solving skills within the customer support team.
Average Handling Time (AHT) ⚖️
AHT is the average duration it takes to handle customer interaction, including the time spent resolving the issue and providing your customer with a solution. Reducing the time taken to resolve queries is crucial to maintain high CSAT scores.
P.S: If you loved reading about CSAT, you will find this list of 23 growth metrics incredibly helpful 💪🏼
Written by
GrowthX Editorial Team
Growth can be achieved in a profitable, scalable & sustainable way. That’s what we write here, one blog at a time 🚀
