Customer Satisfaction Score (CSAT) is a metric that shows how satisfied your customers are with your company’s products or services. CSAT is an important measure of customer experience for organizations. As CSAT score helps brands determine how well they are currently satisfying customers’ demands and what they can do to improve.
CSAT being a simple and effective method, it is quite popular. All leading brands take customer satisfaction surveys from time to time to learn about their customers. CSAT feedback can be taken at any customer journey touchpoints such as – post-purchase feedback, after customer support service, or website experience.
Here we will see how measuring CSAT score works, and how you can easily determine it:
How to Measure CSAT:
There can be one or multiple questions for CSAT Survey. Also, questions can be changed according to the product’s or brand’s needs. Here is a single question type CSAT survey to find CSAT score.
“How would you rate your overall satisfaction with the product you received?”
Respondents can use the following 1 to 5 scale:
1. Very unsatisfied
5. Very satisfied
So according to the consumer’s experience and interaction with the brand, they select one of the above options. The customers who are extremely happy with the products/services are more likely to select “Very satisfied” as their response. In contrast, the ones who are not happy will choose “Very unsatisfied”.
Calculate Customer Satisfaction Score:
To calculate the customer satisfaction score, you have to divide the total number of positive responses (4 or 5) by the total number of responses. Then multiply the result by 100 to get the CSAT score in percentage.
Eg. If you receive 125 positive responses out of 200 responses. Your CSAT score will be 62.5%.
You can use the following formula to use CSAT.
Here is how,
This way you can measure the CSAT score for any type of CSAT question.
We have discussed what is CSAT score and how to calculate it. Now we will discuss why Customer Satisfaction is important for any business.
Why Customer Satisfaction is Important?
According to Forbes, businesses lose $338.5 billion due to bad customer service every year. Research shows that customers with positive experiences talk about it with 7 people on average. However, customers with negative experiences share their experience with an average of 12 people.
The customers who are satisfied with your services return more often and spread positive words for your business. Moreover, verbal recommendations is still an effective way to market your business since people trust the opinions of those who have already used the services.
Thus, you need to ensure that your customers spread positive feedback about your business resulting in an increased conversion rate and higher revenue. That’s how the power of ‘word of mouth’ outweighs all other types of marketing for people. And to accomplish that, you must keep your customers satisfied with your excellent services.
QaizenX allows you to ask the right question to the right people at the right time. QaizenX helps you to increase customer satisfaction scores.
Once you gather responses using the above types of CSAT questions, you can calculate the Customer Satisfaction Score using the above formula.
To summarize, conducting a customer satisfaction survey will help your brand to retain customers before they decide to leave. However, this will be only possible if you listen to your customer and start offering them a solution.
Moreover, customers are giving you their valuable time to fill the survey. It is therefore imperative that you analyse feedback and respond accordingly to keep them engaged. With this approach, you can show them you care about them and increase their loyalty towards your brand.