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What Is Customer Satisfaction Score (CSAT)?

by | 7 Oct 2022

Today, customer satisfaction is a key element in the smooth running of a company. An unhappy customer can damage the reputation of your business and even decrease your sales. We are in an era of “customer-centricity” and finding the right tools for your business to measure customer satisfaction is crucial. One way companies measure their success with customers is through customer satisfaction scores (CSAT). But what is this tool and how do you use it? Find out in this article.

What is the CSAT (customer satisfaction score)?

CSAT stands for « customer satisfaction ». It is a basic measure of a customer’s satisfaction with a company’s product/service. CSAT determines the level of satisfaction of a customer at key interaction moments. Just after an online purchase, after a call or after the resolution of a support ticket for example. The most important thing is to know how to use it correctly. You need to use these scores to draw conclusions and improve your products/services. To better understand the factors that make the score change and improve, CSAT results can be complemented by further qualitative research.

How does the CSAT work?

CSAT is measured by one or more variations of a generic CSAT question that appears at the end of a customer satisfaction survey. The question is in this form: « How would you rate your overall satisfaction with the [goods/services] you received? » Then the respondents to the survey use the following scale (from 1 to 5):

  • Very dissatisfied
  • Dissatisfied
  • Neutral
  • Satisfied
  • Very satisfied

Finally, the results are averaged to obtain a customer satisfaction score from 0% to 100%.

what is customer satisfaction score

How to calculate the Customer Satisfaction Score (CSAT)?

The CSAT score only calculates the answers 4 “satisfied” and 5 “very satisfied”. The most accurate indicator in satisfaction surveys are the two highest values. Generally, CSAT scores are expressed as a percentage. Totally satisfied customers will be 100% and unsatisfied will be a 0% score.

In fact, the Calculation of the CSAT score is quite easy: (Number of satisfied customers (4 and 5)/ Number of survey responses) x 100 = % satisfied customers.

Applying CSAT to your business

Note that the CSAT Score may vary between industries. Here’s a little overview of industry benchmarks for CSAT score, according to the American Customer Satisfaction Index.

  • Apparel: 79
  • Automobiles and Light Vehicles: 82
  • Banks: 81
  • Breweries: 85
  • Cellular Telephones: 79
  • Computer Software: 79
  • Consumer Shipping: 78
  • Credit Unions: 81
  • Financial Advisors: 80
  • Full-Service Restaurants: 81

So be careful to analyse your score according to your sector. Indeed, if you wish to have even more accurate and complete results, the use of CSAT combined with other survey methods (CES, NPS ®, …) may be an option. In any case, starting by analyzing your customer satisfaction is an important first step. The more you know about your customers and the quality of your services, the better you can serve them and improve.

Do you also want to start with a CSAT score to get to know your customers better? Don’t hesitate to ask for a free demo of our platform!

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