Businesses need to have a clear understanding of how well they’re meeting their customers’ expectations. By asking customers to rate their satisfaction, companies can quickly identify what’s working well and what might need improvement. This is where the CSAT score comes in.
The insights this metric provides are invaluable for making informed decisions that enhance customer experience and foster long-term loyalty.
CSAT score meaning
CSAT stands for Customer Satisfaction Score. It is a straightforward yet powerful metric that businesses use to measure how satisfied their customers are with a product, service, or experience.
It’s typically expressed as a percentage, calculated from the feedback customers provide in response to a specific question or set of questions.
Now that you understand the concept, let’s take a closer look at how CSAT scores can be useful for Customer Success.
How to calculate CSAT score
The CSAT score measures customer satisfaction by asking them to rate their experience with a product, service, or interaction. It involves the number of positive responses as well as the total number of responses to the survey, reflecting the proportion of your customer base that is satisfied.
CSAT formula
The formula for calculating CSAT is:
CSAT Score (%) = (Number of Positive Responses / Total Number of Responses) x 100
In this formula:
"Number of positive responses" refers to the total number of responses that fall into the highest satisfaction ratings. For example, if you're using a 5-point scale, ratings of 4 or 5 would typically be considered positive responses.
"Total number of responses" is the total number of survey responses you received.
All you need to do is to divide the number of positive responses by the total number of responses, and then multiply the result by 100.
You can also use this CSAT calculator to make this process much easier.
CSAT score benchmarks
After calculating your CSAT score, you'll have a percentage that represents the overall satisfaction level of your customers. Here's how to interpret it:
Your score is average if it’s in between 50% - 70%, meaning you should ideally aim to improve it. If it’s above 70%, that would typically be a good score that reflects your customers happiness with your product or service. A 100% CSAT score means every customer that responded gave you the best possible rating. This is a fantastic score, but you need to put in a significant effort to maintain it at that level.
Benefits of sending out CSAT surveys
Understanding how your customers feel about your product or service is crucial for any business aiming to thrive. Here’s how CSAT surveys contribute:
Actionable feedback
CSAT surveys give you immediate access to customer opinions, allowing you to pinpoint exactly what aspects of your service or product resonate with your customers and where there’s room for improvement. This can help you make targeted changes that enhance the customer experience.
Customer retention
Regularly monitoring customer satisfaction can be a game-changer in retention efforts. By keeping a close eye on your CSAT scores, you can identify dissatisfied customers early on and address their concerns before they escalate. This proactive approach not only prevents churn but also shows your customers that their satisfaction is your priority.
Continuous improvement
CSAT surveys are not a one-time activity. Tracking your CSAT over time enables you to see how changes in your product, service, or customer support affect overall satisfaction. This ongoing measurement helps you refine your approach and continually improve the customer experience.
Understanding these benefits is key to realizing the full potential of CSAT surveys. Now that we've covered why they matter, let's delve into how you can calculate your CSAT score and use it to drive meaningful change in your business.
How to run a CSAT survey
A well-executed CSAT survey can provide valuable insights into customer satisfaction, but to achieve the best results, you need to approach the process thoughtfully. Here's a step-by-step guide to help you get started:
Step 1: Choose the right moment
Timing is crucial when sending out a CSAT survey. You want to capture feedback when the experience is fresh in the customer’s mind, so consider sending the survey right after a key interaction. This could be after a purchase, a customer support interaction, or following a significant product update. By choosing the right moment, you ensure that the feedback you receive is relevant and accurate.
Step 2: Craft the questions
The core of any CSAT survey is the question that asks customers how satisfied they are with your product or service. A straightforward question like, "How satisfied are you with [product/service]?" on a scale from 1 to 5, is typically effective.
You can also include follow-up questions that allow customers to explain their score in more detail. These open-ended questions can provide deeper insights into what’s working well and what needs improvement.
Step 3: Personalize and customize your survey
A personalized survey can make a big difference in response rates and the quality of feedback you receive. Customize your survey to reflect your brand’s tone and style, making it a seamless part of the customer experience.
You can do this using tools like SurveyMonkey or even directly through a Customer Success software like Velaris.
Step 4: Distribute the survey
Once your survey is ready, it’s time to send it out. You can distribute CSAT surveys through various channels, such as in-app pop-ups or email. The key is to choose a method that is convenient for your customers and fits naturally into their journey.
Tools like Velaris simplify this process by allowing you to send surveys to specific customer segments directly from the platform, ensuring that the right customers receive the right survey at the right time.
Step 5: Calculate your CSAT scores
Once you've collected enough survey responses, it's time to calculate your CSAT score. You can do that manually by using the formula, or use our CSAT score calculator.
Your CSAT score is a starting point for understanding customer satisfaction, but it's essential to dive deeper into the survey responses. Analyze the feedback and look for common themes or areas where customers express dissatisfaction. Use this information to identify specific improvements or changes needed in your products or services.
Velaris can create customized email and in-app surveys for CSAT and other types of surveys using its survey builder. You can also trigger surveys using automation based on certain events like feature usage or lifecycle changes.
By monitoring and responding to customer feedback effectively, you can improve your product or service and, ultimately, enhance customer satisfaction.
With these steps, you're well on your way to effectively using CSAT surveys to understand and improve customer satisfaction. Next, let’s explore how to get your scores up.
How to improve your CSAT score
Increasing your CSAT score can have a significant impact on customer loyalty and long-term success. Let’s dive into some practical strategies to help you boost customer satisfaction and achieve better results:
Listen to your customers
The first step in improving CSAT is to listen actively to your customers. Encourage feedback through surveys, emails, or direct conversations. Pay attention to both positive and negative feedback, as it can provide valuable insights into areas that need improvement.
Set clear expectations
Ensure that your customers know what to expect when they engage with your business. Transparency about pricing, delivery times, and product features can prevent disappointment and lead to higher satisfaction.
Fix issues promptly
When issues or complaints arise, address them promptly and effectively. Show your customers that you care about their concerns and are committed to resolving them.
Personalize the experience
Tailor your interactions with customers based on their preferences and history with your business. Personalization can make customers feel valued and appreciated.
Improving your CSAT score is a powerful way to enhance customer satisfaction and build stronger relationships. But once you've made these improvements, it's crucial to keep the momentum going.
Key takeaways
- CSAT measures customer satisfaction with a product or service, providing a percentage-based metric that helps businesses understand how well they meet customer expectations.
- Regular CSAT surveys provide actionable feedback, help with customer retention by identifying dissatisfied customers early, support continuous improvement by tracking satisfaction over time, and allow benchmarking against industry standards.
- Crafting a CSAT survey involves identifying clear and relevant questions that customers can rate with opportunities to follow up their answers with more information
- The CSAT score is calculated as a percentage using the formula: CSAT Score (%) = (Number of Positive Responses / Total Number of Responses) x 100.
- CSAT scores can be improved by actively listening to feedback, setting clear expectations, promptly addressing issues, and personalizing customer interactions.
