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CSAT

What is CSAT?  

CSAT stands for Customer Satisfaction Score.  

It is used to measure a customer's satisfaction with a business, service, product, or experience.  

In most scenarios, the term "CSAT" gets interlinked with the term "CSAT score", which is the numerical measure of customer satisfaction.  

Usually, brands and marketers use CSAT scores to check their customer's satisfaction levels. It includes specific interaction times like:  

  • Buying a product,  
  • Phone conversation,  
  • Onboarding process,  
  • Customer Service, etc.  

To make it simple, it is calculated by asking questions such as:  

"How satisfied were you with your experience?"  

The Customer Satisfaction Score's biggest strength is its simplicity. A simple technique of rating would help in deciding the customer's experience. It helps in finding out whether or not your customer is happy with the customer experience.  

If for some reason the customer was not satisfied with the experience, the company can take necessary actions to improve it.  

Since it’s a quick and easy survey, you can ask for it across the different journeys to know how your customer feels throughout the entire process. This makes it easy for companies to find areas to improve upon and deliver quality customer experience.  

   

Why Measure Customer Satisfaction?

If you do not measure customer satisfaction, you will not be able to find the customers who are not happy.  

And if you do not know which customers are dissatisfied with you, there is a possibility of losing them. It is important to know your customers well and how satisfied they are with the experience.  

Without proper communication with your customer, you isolate yourself in a bubble. Companies who perform well never neglect their customers and take immense steps to keep them happy. The main reason businesses like to measure customer satisfaction is to check retention. It is easy to keep your customers than to make new ones. Companies need loyal customers for long-term business growth.  

You could bring in new customers, but if they do not stick around, you will not have a sustainable business. Customer retention plays a huge role in businesses.

Now that we have learned the importance of customer satisfaction, let us look at ways to measure it.

What Is a Good Customer Satisfaction Score?  

While CSAT scores vary by industry, a good score will fall between 75% and 85%. Since CSAT measures only your promoter scores, it is difficult to get a near-perfect score. Having a score of 75% means that three out of every four customers are happy with the experience.  

 

How to Measure Customer Satisfaction?  

The primary goal for any business should be creating happy experiences for their customers. Businesses that care about customer satisfaction grow and flourish. Although, measuring customer satisfaction is not extremely complicated, but it is not as straightforward as well. It is not like measuring revenue streams. Here are some great techniques designed for this purpose:  

  • Customer Satisfaction Surveys:  

Customer satisfaction surveys are the traditional method used for collecting data on customer happiness. These surveys consist of asking follow-up questions to check if their customers are satisfied or not.  

  • In-App Surveys:  

In the In-App survey, you integrate a feedback bar into your website. This method has the highest response rate because customers can give their opinion while they are still engaged on the website.  

  • Post Service Surveys:  

These surveys focus on customer satisfaction after receiving the service from the company. You ask for a survey at once after the service gets delivered. That’s when the experience is still fresh in the minds of the customers. The company communicates the survey either with a follow-up mail with an attached rating link, or by calling them.  

  • Email Surveys:  

Email Surveys acts like a particularly valuable tool in measuring customer satisfaction. Although the response rates are low, they give enough time to customers to respond to them. There are several free tools such as Google Forms, Survey Monkey, etc. for creating surveys.  

   

What is Net Promoter Score?

NPS measures the likelihood of customers who are most likely to recommend your brand to others. It is used for measuring customer loyalty. For e.g. on a scale of 1- 10, how likely are your existing customers looking to recommend your service to others? This method helps in measuring customer satisfaction and the intent of referring it. This method answers the question of whether your service or product is doing good or not.

 

How NPS Works?  

NPS is a simple customer surveying method, relying on one question:  

Would you recommend our brand to others? And how much would you rate us?  

Now, the customer rates your brand on a scale of 1 to 10. 10 being the most likely to recommend your brand and 1 being the least likely to recommend your brand to others. Responses are then segregated into one of these three categories:  

  •  Promoters:  

Customers with scores of 9 and 10 are the most loyal customers who are energetic about spreading the word about your brand. They are the most loyal customers of your company.  

  • Passive:  

Scores of 7 or 8 are passive customers satisfied with the service, although, they aren’t loyal to the company. These customers are more likely to switch to competitors if they get a better deal.  

  • Detractors:  

Customers giving scores between 0 and 6 are not satisfied with your brand.  

The percentage of promoters subtracted from the percentage of detractors stands for your NPS.  

 

Benefits of Improving and Tracking Customer NPS.

There are many benefits that may push you to improve and track net promoter scores. But here are some helps you may want to consider:  

  • Repeat Business:  

The promoter score is to track the likelihood of customers sharing your product with others. That being said, it is also a wonderful way to see if your customers are likely to repeat business with your company.  

  • Highlight Potential Improvements:  

When you install an NPS program, you may see areas that could use some tweaking. It is a metric and those numbers always keep improving.  

  • Raises Brand Awareness:  

If your customer’s start promoting your brand, it will result in greater brand awareness. Not only will recognition increase, it will also get potential customers to your brand. Product managers implement necessary changes that make customers happy.  

 

What are some techniques and tools for improving NPS?

Your NPS is not static; you should always be working on improving your Net Promoter Score. The higher, the better. These tools will help you gain better insight into customers, allowing you to make informed decisions to enhance customer satisfaction and loyalty. Tools for improving NPS are:  

  • Survey Tools  
  • Automation Tools  
  • Listening  
  • Mapping  

 

Tips for Improving CSAT.

Now that we have already gone through the methods of measuring customer satisfaction. Let us move into the most obvious question, “How can we improve customer satisfaction?”  

  • Request Customer Feedback  

In simple terms, make it easier for customers to raise their complaints. If your customers cannot give a feedback or complain to you, they will instead complain to their friends and family or on social media.  

They will be furious over the poor experience, lack of an outlet to address their concerns or have their complaints resolved.  

By supplying a platform for all your customer's feedback or difficulties, you can prevent customers from becoming detractors. By acting on it, you can turn the situation into something positive.  

  • Supply Proactive Customer Service  

The best way to improve your customer experience would be by reaching out to your customers. Contact them and try solving their problems before they can even reach out to you. Moreover, to increase the effectiveness, make sure the contacts are personal, prompt, and relevant.  

This way you can reduce inbound calls, improving the efficiency of your business. Through proactive customer service the company is making a medium for itself. A happy customer would bring more prospects to the business improving the business.  

  • Set Better Expectations  

The rule of thumb is to under-promise and over-deliver to your customers. If your website says your team would get back within 24 hours and you get back in an hour you are meeting the expectations set.  

Another example would be helping a customer on a weekend even if your company does not work on weekends.

Setting expectations that you cannot deliver on time will only leave your customers frustrated and unhappy.

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