How to Use the Customer Satisfaction Score (CSAT) Metric

Simplifying CX YouTube series episode on how to use the CSAT metric.

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Video Transcript

Hey everyone, Sara here from GetFeedback. Welcome to another episode of Simplifying CX. 

If you’re new to this channel, welcome! Our videos are here to provide you with straightforward answers to the biggest CX challenges. If that sounds relevant to you—don’t forget to subscribe!  

Today I’m going to go over the basics of the Customer Satisfaction Score, also known as CSAT, which is one of the most popular customer loyalty metrics. 

First, I’ll explain why CSAT is important. Then I’ll go over how to measure it. 

Lastly, I’ll explain how you should use the Customer Satisfaction Score metric. 

So, CSAT is a customer loyalty metric used by companies to gauge how satisfied a customer is with a particular interaction or overall experience.

This metric goes hand in hand with great customer experience. In fact, satisfaction goes a long way⁠—just a 10% increase in a company’s CSAT score leads to a 12% increase in trust from customers.

Also, satisfied customers are more likely to upgrade or add services and are less likely to cancel them.

OK so how do you measure it?

The Customer Satisfaction Score is assessed by asking customers to rate on a five-point scale—1 being very unsatisfied and 5 being very satisfied—what their overall satisfaction was with a product, service, or specific interaction.  

The metric is looking specifically at the percentage of happy customers. Which is why the CSAT percentage score is calculated by looking at the 4 to 5 ratings. 

The formula is: (The total Number of  4 and 5 responses) ÷ (Number of total responses) x 100 = % of satisfied customers.

So, for example, a CSAT rating of 80% means that the majority of customers are giving a satisfied rating.

If you’re using CSAT already and you’re not sure how you compare to your peers, a good resource is the American Customer Satisfaction Index.

 According to the index, the current overall U.S. Customer Satisfaction Score is 76.5%. But keep in mind that the benchmark will vary by industry so I recommend going onto their website for the latest information.

Customer Satisfaction Score is both a relationship metric and a touchpoint metric.

It’s a relationship metric in the sense that it can be used to evaluate the overall customer relationship and end-to-end experience.

And as a touchpoint metric, it can be used to capture feedback after individual customer interaction with different points of the customer journey.

For instance, you should use a CSAT survey to measure the experience during the beginning of the customer journey, which includes the discovery and explore stage. Here your customer is deep into the research phase, trying to learn about your brand and comparing it with others like it. So, for example, you could ask how satisfied they were with the ability to find answers to their questions on your product page. 

It’s also great for evaluating the overall experience during the purchasing stage, especially for B2B companies.

As well as for measuring the performance and quality of a product or service and the satisfaction of a complex support need.

In summary, the Customer Satisfaction Score should be used to measure the customer satisfaction of an end-to-end experience as well as a specific interaction or event. 

For a complete guide on how to use the CSAT metric, click on the description section of this video. 

Also, if there’s a topic that you’d like us to cover, tell us in the comments section! 

And make sure to subscribe now to see more videos that simplify CX. 

Until next time!  

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