What is Customer Satisfaction (CSAT) Score – Definition, Calculation, Benefits, and More

Mike has been shopping from Zara for quite some time now. Recently he bought a pair of trousers which was missing some buttons and the product quality was really poor.?

Being a consistent customer of Zara, Mike reached out to its customer service and informed them of the situation. They quickly picked up the trouser and refunded the amount to Mike. And not just that, they apologized to him and gave him a gift voucher.?

Happy with the response, Mike reached out to Twitter and shared his experience around. And he continued to shop with Zara.?

This is the power of a happy customer. And what makes a happy customer??

Customer satisfaction.

Having said that, how’d you know if the customer is satisfied with you or not?

How can you measure their customer satisfaction?

Here comes in - CSAT survey.?

What is the CSAT survey??

CSAT surveys are the surveys that help brands (like Zara) retain their existing customers (Mike) by gauging their satisfaction. The Customer Satisfaction (CSAT) score is a transactional metric that is used to measure customer satisfaction at every touchpoint across the customer journey.?

So, why is it important?

Here are the 5 things that make CSAT surveys valuable:?

1. It helps you understand the expectations of your customers.
2. It indicates customer retention.?
3. It tells you why customers choose you over your competitors.
4. It lets you evaluate your customer's liking of any product.
5. It helps you recognize what experiences you should reinforce to boost customer loyalty and retention.

Now that we know the importance of a CSAT survey, how can we create one?

To create one, you must know the types of CSAT surveys first.?

Types of CSAT survey

There are four types of questions that you can ask in the CSAT survey:??

1. Rating scale questions can be asked to know customer reviews on the product, product feature, customer support efficiency, transaction experience, or new launches on a 1-5 scale.

2. Binary scale questions are those questions where only two options are given i.e. either yes or no.

3. Likert scale questions are used to evaluate the customer’s emotions towards a product on a scale of 1-5 or 1-7 where 5 or 7 is the highest score, 1 is the lowest, 2 & 4 are moderate and 3 is neutral.?

→ Know more about Likert Scale Questions

4. Semantic differential questions are similar to Likert scale questions as it also has the 1-5 scale or 1-7 scale. But the options given are descriptive.?

Now that you have created and shared the survey and gathered the responses, how can you calculate the CSAT score??

How to calculate the CSAT score?

You can calculate the score by dividing the positive responses by the total number of responses you’ve received and multiplying the result by 100. There you will get the CSAT score percentage.?

For instance, you gathered a survey from 100 customers where 40 customers responded positively and 20 customers responded negatively. Then, according to the formula, your CSAT score will be:?

(40/100) * 100 = 40%

Now, let us quickly look at when you should send the Customer Satisfaction Score.?

When should you send CSAT surveys??

You can send these surveys just after the customer has used your product/services to get honest and unbiased answers. Sending the surveys at the correct time is important and if CSAT is used strategically, it can become a major ally.??

Let us understand it better with an example of a B2B SaaS journey from awareness to purchase to renewal.???

• You can send the CSAT surveys just AFTER a WEBINAR. It will tell the success of the webinar, and assess if the customers have moved from the level of awareness to the consideration.
• Now to analyze your after-sales performance, send surveys after PRODUCT PURCHASE and before handing over the customer to the customer success manager.?
• After ONBOARDING, you can send the CSAT surveys to know the customer’s experience and their requirements. It also informs you about where you can improve your services.?
• Sending the CSAT survey during the NEW PRODUCT LAUNCH/UPDATE will help you to know the insights about customers’ liking your product and how well they’re able to adapt new features. You can also use an in-app survey for those customers who have tried the feature/product.??
• After the CUSTOMER SUPPORT call also, you can send the CSAT survey. This is one of the most efficient and easiest ways to know how your customer support is and whether your customers are getting the expected support or not.?
• To identify how happy or unhappy your customers are, send the CSAT survey before some time of RENEWAL or REPURCHASE. In the case of renewal, you will get enough time to make your customers happy.

That’s all for now!

To know more, head to our guide on What is Customer Satisfaction (CSAT) Score – Definition, Calculation, Benefits, and More?