What is Customer Satisfaction Score - CSAT

"How satisfied were you with your recent purchase?"

We've all been there, answering this very question after checkout or clicking a star rating. But for CX professionals, this simple question unlocks a goldmine of information.

Have you ever felt frustrated after a confusing online return process? Or maybe disappointed by a product that didn't quite live up to the hype? Every customer interaction, positive or negative, shapes their perception of your brand. 

But how do we truly capture the essence of that experience? The Customer Satisfaction Score (CSAT) paves the way! It goes beyond a single "satisfied" or "unsatisfied" to a deeper understanding of how customers feel about specific experiences. 

What is CSAT?

At its core, the Customer Satisfaction Score (CSAT) is a customer experience metric used to gauge the satisfaction levels of your customers with a particular interaction, product, or service.

Typically measured through a short survey question such as, "How would you rate your overall satisfaction with the [product/service] you received?"

Responses are usually captured on a scale, for instance, 1 to 5, with 1 being "very unsatisfied" and 5 "very satisfied." 

Why CSAT Holds the Key to Customer Loyalty

Understanding customer satisfaction is not just about gathering numbers; it's about deciphering what those numbers say about your customers' expectations and experiences. High CSAT scores among other critical CX metrics such as the NPS Score, can be indicative of several positive outcomes, including:  

1.  Sustainable Growth 

Satisfied customers are more likely to return, leading to increased customer lifetime value.  

2. Word-of-Mouth Promotion

Happy customers become brand advocates, recommending your business to friends and colleagues.

3. Reduced Churn

By identifying and addressing areas of dissatisfaction, businesses can prevent customers from leaving for competitors.  

How to Measure CSAT: Beyond the Basics 

Collecting customer feedback through CSAT surveys is just the first step. The true power lies in transforming those responses into actionable data.  

Here's how to effectively measure CSAT and gain valuable insights: 

1.  Choose Your Measurement Scale

• Likert Scale: This classic scale uses a range of options, typically from 1 (Very Unsatisfied) to 5 (Very Satisfied). It's simple to understand and widely used.
• Smiley Scale: Emojis or smileys can be a more engaging option, particularly for mobile surveys.
• Star Rating: Similar to the Likert Scale, star ratings are easy to understand and visually appealing.  

2. Craft Your Survey

Keep your CSAT survey concise and focused on the specific experience you're measuring. Here's an example: 

Question: How satisfied were you with your recent customer support interaction? 

Scale: (1) Very Unsatisfied  (2) Unsatisfied  (3) Neutral  (4) Satisfied  (5) Very Satisfied 

3. Gather Responses

• Emails
• Support ticket follow-ups
• Website pop-ups (use sparingly to avoid interrupting the user journey)
• Mobile app surveys
• QR codes 
  
  

💡Pro Tip: With a tool like Pisano, you can easily design, distribute, and manage your CSAT surveys across various channels, ensuring you reach the right customers at the right time. 

4. Calculate the CSAT Score

Once you have your responses, it's time to calculate your CSAT score. Here's the formula:

CSAT Score = (% Satisfied Responses + % Very Satisfied Responses) x 100

For example:

If you receive 100 responses and 60 customers choose "Satisfied" or "Very Satisfied," your CSAT score would be (60 / 100) x 100 = 60% 

5. Turn Numbers into Customer Centricity

By regularly measuring and analyzing CSAT scores, you can:

• Identify areas for improvement: Is your onboarding process confusing? Are your return policies cumbersome? Pinpoint pain points and prioritize improvement initiatives.
• Benchmark performance: Track your CSAT score over time to monitor progress and compare yourself to industry benchmarks.
• Empower your teams: Share CSAT data with relevant departments to foster a customer-centric culture and encourage data-driven decision-making. 

🪷An Inspiring Example of a CSAT Success Story 

Meet Alex, the dedicated Customer Experience Manager at SolarFlare Electronics, an imaginary tech company known for its innovative solar-powered gadgets.  

Despite receiving accolades for innovation, SolarFlare struggled with a critical aspect of their business—customer satisfaction seemed to be waning, evidenced by a steady decline in their CSAT scores over recent quarters. Alex knew this trend could not continue if SolarFlare was to maintain its market position and grow.  

SolarFlare's CSAT surveys were revealing a pattern; customers were frustrated with the after-sales support and the complexity of setting up their devices. Despite this feedback, actionable insights were hard to come by, and the team felt stuck in a reactive mode, addressing issues as they arose but unable to stem the tide of growing dissatisfaction.  

Determined to turn things around, Alex introduced a new initiative. The goal was simple: transform SolarFlare's approach to customer satisfaction from reactive to proactive.  

Leveraging an advanced VoC tool like Pisano, Alex and the team redesigned the CSAT surveys to be more intuitive and engaging, ensuring they were sent out at the optimal moment after purchase. This move significantly increased response rates, providing a richer data set to work from.  

With advanced analytics, Alex was able to segment the feedback, identifying that the setup process for their flagship product was the primary pain point. Surprisingly, the analysis also revealed that customers loved the product design and found the solar tech highly effective—valuable insights that had previously been overshadowed by negative feedback.  

Armed with these insights, SolarFlare launched a series of instructional videos and quick-start guides, simplifying the setup process. They also introduced a dedicated helpline for immediate after-sales support, staffed by knowledgeable tech assistants.  

Perhaps most importantly, Alex implemented a closed feedback loop system. Every customer who left a CSAT score below a certain threshold was contacted for a follow-up, ensuring their specific concerns were addressed. This not only helped in rectifying immediate issues but also demonstrated to customers that SolarFlare genuinely cared about their satisfaction.

The impact of these changes was swift and significant. Within just two quarters, SolarFlare's CSAT scores began to climb.

Customers were not only satisfied but delighted with the new, simplified setup process and responsive after-sales support. Word-of-mouth recommendations led to an increase in sales, and the improved CSAT scores provided a competitive edge in the tech industry.   

Pisano: Creating Difference with Your CSAT Strategy 

At Pisano we believe in the transformative power of understanding and managing customer experiences. Our Experience Management Platform goes beyond mere data collection, offering advanced tools and expert insights to:

• Streamline Feedback Collection: Effortlessly gather CSAT data across multiple touchpoints, ensuring you capture a comprehensive view of customer satisfaction.
• Unlock Actionable Insights: Dive deeper into your CSAT scores to understand the why behind the numbers, allowing for targeted improvements.
• Drive Meaningful Change: Our platform doesn’t just tell you what needs to be fixed; it helps you prioritize and implement changes that have a real impact on customer satisfaction.