What Is CSAT (Customer Satisfaction Score) And How Do You Measure It?
What is CSAT?
CSAT is short for Customer Satisfaction Score. It is a commonly used indicator that can be used as a key performance indicator for customer service and product quality in all types of business activities. Although it is a common idea to consider customer satisfaction as an idea, CSAT is a more specific measure expressed as a percentage 100% is great, 0% is terrible.
How do you measure CSAT?
CSAT is measured by customer feedback. This is derived from one or more formulas of this question:
“How would you rate your overall satisfaction with the [goods/services] you received?”
Respondents used the following scale from 1 to 5:
- Not so satisfied
- Not satisfied
- Very satisfied
Although CSAT scores are usually expressed as a percentage measure, the scores can be averaged to arrive at a comprehensive customer satisfaction score.
The most common method of eliciting feedback is through surveys, whether it is traditional surveys, identifiers, pop-up windows, or static forms within the website, within the application, via SMS or other methods.
To calculate the CSAT score based on survey data, you will use answers 4 (satisfied) and 5 (very satisfied). The two highest values used in the survey have proven to be the most accurate predictors of customer retention.
To make this calculation, you also need to know the total number of responses received. If you run the customer feedback program from a central platform, you can easily find this number.
Use the following formula to get the percentage score:
(Number of satisfied customers (4 and 5) / number of survey responses) x 100 = percentage of satisfied customers
When should CSAT be measured?
So, when should you ask customers to provide feedback on their experience? The answer may depend on the type of product or service you provide. For individual interactions (such as a phone call to your call centre), it makes sense to request feedback immediately so that the conversation can come to mind.
For experiences that will last for a while, such as subscriptions or long-term use items (such as tools or furniture items), you may need to give customers some time (days or weeks) before requesting these ideas so that they can evaluate the purchase and Check its performance in the use different case.
Essentially, CSAT is a “right here” metric about a specific experience, not an ongoing customer relationship.
You can ask returning customers to provide feedback multiple times (although make sure not to make customers ask for reviews too much, as this may cause their own problems).
What is a good CSAT score?
You participated in the CSAT questionnaire and the results are displayed. But how do you know if CSAT scores are good? How do you define your expectations?
Measuring CSAT scores is not accurate science, because every business and product is different, but you can use ACSI (American Customer Service Index) and other resources to understand the typical situation of the industry, which is industry, industry, brand and company provide benchmark scores.
But what is certain is-if your score goes from low to high, then you are doing it right. To track your progress, you must continuously measure CSAT by making CSAT a regular part of the customer experience plan.
What are the advantages and disadvantages of CSAT?
Like all indicators, CSAT is just one of the difficult problems in measuring business success. This is the feature you need to understand.
Easy to measure
Using a simple classification scale format, CSAT data can be captured in one question, which can be quickly and easily managed across multiple channels.
It’s easy for your customers
Because of its simplicity and simplicity, CSAT questions are a trivial task for customers. If you ask multiple times, it will reduce the chance of them running out of CSAT questions.
It produces easy-to-use data
The numerical data provided by CSAT is easy to process and analyze using various statistical tests.
Since CSAT has become a benchmark, it can be compared with other companies. Also, you can even use your impressive results for marketing and promotion.
Disadvantages of CSAT (Customer Satisfaction Score)
It relies on self-report
As we all know, self-reported data is very prone to bias. Even using simple content such as CSAT questionnaires, you may get incorrect answers based on some people’s emotions or life events.
Its depth and detail are limited
CSAT is a powerful measure of positive or negative. It will not capture the nuances or details in the experiment.
One person answer
When someone has a one-on-one experience, CSAT can work well. But what if they answer on behalf of the family, the team, or the entire company that uses the product or service?
Vulnerable to response bias
People who respond to CSAT are likely to have experienced very positive or extremely negative experiences. People who feel neutral may be reluctant to participate in surveys.
How is CSAT different from Net Promoter Score (NPS) and Customer Effort Score (CES)?
CSAT measures customer satisfaction with products or services, while the Net Promoter Score (NPS) measures customer loyalty to the organization. At the same time, CES (Customer Workload Score) measures how easy it is for customers to complete tasks with you.
The goal of CSAT is to respond to specific interactions, products or events “here and now”. But is limited in measuring the ongoing relationship between the customer and the company.
CSAT can also be used in a variety of situations to focus on specific parts of the customer experience. For example, “How would you rate your overall satisfaction with the phone service received/helped/connected to an assistant?”
In contrast, NPS loyalty measurement contains only one question: “How likely are you to recommend [organization X / product Y / service Z] to a friend or colleague?” It requires customers to have a broader understanding of the brand or product and focus Based on their intentions, not overall satisfaction.
CES supplemented Monday’s content, adding a new dimension to CSAT experience data and helping to predict the likelihood of future customer loyalty. Like others, it is a one-question scale with a scale of possible answers.
How to use CSAT?
Just like NPS, CSAT can measure customer experience. But understanding the state of customer experience performance is only the first step. What really matters is how you use scores to enhance and improve the experience.
CSAT results (and CES and NPS) must be supplemented by more qualitative research to understand the driving factors behind the results so that you can take action to improve the customer experience (and thus your business results).
Link CSAT to income
When you understand the relationship between satisfaction and income, you can start to make an impact. Tracking overall customer profitability is called “lifetime customer value,” which is the next step in making the customer experience a long-term business success strategy.