CSAT is a marketing metric that allows business owners to measure customer satisfaction scores. It's one of the easiest ways to identify customer satisfaction with a product or service.

In this article, we'll consider the importance of CSAT, uncover the difference between this metric and NPS, show you how to calculate the score, and provide some tips to improve it.

Why is customer satisfaction score important?

Every business strives to deliver the best customer experience. It helps companies grow, build loyalty, and blow up sales. To learn whether customers are satisfied with the products and service, brands use different types of surveys, for example, NPS and customer satisfaction surveys.

CSAT allows companies to improve the customer experience at different stages: acquisition, onboarding, ordering, post-purchase service, etc. All these stages make up the customer lifecycle, so to ensure a smooth customer journey, brands monitor this score regularly.

The problem of customer churn befalls every business sooner or later. The good news is that you can predict and prevent it by asking your clients directly if they're satisfied with your product and service. After analyzing the results, you can act on them and focus your efforts on dissatisfied clients before they leave you.

Lastly, regular customer feedback allows businesses to have a clear picture of their position in the market and in clients' minds. So, tracking CSAT regularly enables stakeholders to deliver the best customer experience and reduce the churn rate.

It was mentioned that CSAT and NPS are the most popular surveys among companies that help them reveal their clients' attitudes towards the brand. So, let's take a closer look at each metric.

CSAT vs NPS

Customer satisfaction score lets companies find out the current level of their client's satisfaction with a product or service. Brands can offer this kind of survey to their clients at each stage of their buyer journey and after each touchpoint, for example, after the sale or at the end of the onboarding process. This way, marketers can reveal their weak points and get point-in-time feedback.

NPS stands for Net Promoter Score. This metric allows brands to find out if their customers would recommend the brand to their friends. With an NPS, you can discover the number of Detractors (dissatisfied clients) and Promoters (enthusiasts who are ready to recommend the company). With this survey, you can have more insights into the long-term relationships with your customers.

The core difference is that very satisfied clients are not necessarily promoters. So, NPS is more about measuring loyalty towards your brand.

Now that you know the benefits of CSAT, you might be interested in its formula.

How to calculate CSAT?

First of all, you need to create a survey to collect feedback. You can provide users with an automated in-app survey that they can take after each interaction with your brand, for example, after a conversation with your customer support agent, after a sale, after creating the first landing page with your service, etc.

Take a look at several examples of such surveys. Generally, they let users tell if they are satisfied with a product or service. Very often brands offer a 5-point scale to assess the level of satisfaction or dissatisfaction.

Canadian fast-food restaurant A&W offers its customers to take this kind of survey after each visit. Clients only have to choose positive or negative smiley faces. This survey provides the company with general customer feedback.

A&W

Source: Benbria

A world-know coffee chain Starbucks offers their customers a 5-point scale to assess their satisfaction. This survey provides a more in-depth look at customer experience.

Starbucks

Source: Benbria

After you receive all your clients’ points, you need to count the number of all customers who are satisfied and very satisfied. Then count the number of all users who were asked. Now you can find out your CSAT with the formula below.

CSAT = (Satisfied customers/Total customer surveys)*100

The score will be expressed as a percentage.

Say, 250 users took your customer satisfaction survey. You used a 5-point scale, so the number of satisfied and very satisfied customers made up 135 (45+90). So, your CSAT is 54% ((135/250)*100).

This result indicates that the majority of your customers are satisfied, however, you need something to improve. In the next section, we’ll share some tips.

How to improve customer satisfaction score?

Follow our tips below to make customer satisfaction a priority for your business.

  1. Provide multichannel customer support. People are different, hence they solve their problems in different ways. You should keep in mind this if you want to satisfy them. If a client needs a consultation, email won’t be the best choice. Let them call you. If users have some FAQs, a live chat can be the best option. So, let customers choose the preferable communication channel.
  2. Provide immediate support. Clients expect businesses to answer immediately. If they fail, customers might choose a competitor. To avoid this issue, provide 24/7 customer support and enough agents. You can automate answering FAQs and create a chatbot for Facebook, WhatsApp, Telegram with SendPulse. This way, you can delegate some routine tasks to a chatbot and let customer care agents solve more complicated issues.
  3. Act on feedback timely. Customers appreciate brands that care. To be such a brand, show clients that their opinion matters. Thank them for their feedback and fix the troubles they have immediately. Create a workflow so that each issue is directed to the department responsible for it. For example, if a client complains about some bugs, report this to your product development team. If a client requests a personalized premium plan, let your customer success team contact them.
  4. Monitor complaints regularly and act on them. Very often clients who are not supported properly, share their negative experiences on social media. This can be very harmful to a brand's reputation. So, use special tools to monitor your brand's mentions on Facebook, for example. Once you see a complaint, act immediately. Respond to every user and be thankful for their positive reviews as well. This makes them feel important.
  5. Offer users customer satisfaction surveys regularly. Collecting clients’ feedback regularly will pay off. You’ll see some common behavioral patterns, problems, and strengths. This information is pivotal for every brand because it provides insights into your performance from firsthand experience.

Congrats, now you know why customer satisfaction score is important, know how to measure and increase it. Make use of SendPulse tools for effective communication with clients and improve your product and service every day!

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