What is CSAT?

CSAT, or Customer Satisfaction Score, is a performance indicator used to measure how satisfied customers are with a product, service, or interaction. Typically collected through short surveys immediately after a transaction or customer service interaction, it asks customers to rate their satisfaction on a scale (usually 1-5 or 1-10). The score is then calculated by averaging the ratings, helping businesses gauge customer experiences and identify areas for improvement.  

Say, for example, you work in the hospitality industry and are designing a customer satisfaction score, there are different things you can include to have a better understanding of your customers' satisfaction.

This is just an example of how a customer satisfaction form could look. Remember to base your questions on your business and the services you provide. This form is ideal if you are looking to gather customer satisfaction for a range of different things in one go.

This is another way you can present your customer satisfaction form. This is ideal if you are asking about a certain area of your business. For example, if you want to know how satisfied a customer is with a product or service, then this is the ideal CSAT to use.

How Can You Calculate the Customer Satisfaction Score?

To measure customer satisfaction, businesses can use a CSAT calculator. The process involves sending a survey with relevant questions to customers via forms, email, or survey software. Once responses are collected, the CSAT score is calculated by averaging the responses using either a composite score formula or by calculating the percentage of “satisfied” customers with a detailed score formula. CSAT calculators are the quickest and simplest way to calculate either score.

Why is CSAT Important?

Customer satisfaction is directly linked to customer loyalty, retention, and revenue growth. Satisfied customers are more likely to return, recommend your business to others, and share positive feedback, all of which contribute to long-term success. By measuring CSAT, businesses can:

1. Identify Strengths and Weaknesses: CSAT highlights areas where your business excels and improvements are needed. Whether it’s the quality of a product, the responsiveness of customer support, or the usability of a website, CSAT provides insights into what’s working and what’s not. Mapping the customer journey can help uncover these critical touchpoints.
   
   
2. Track Performance Over Time: By regularly collecting CSAT data, businesses can track their performance and measure progress. If customer satisfaction is consistently high, it’s a sign that your processes are aligned with customer expectations. On the other hand, a drop in CSAT can serve as an early warning system, helping you take corrective action before problems escalate.
   
   
3. Better Customer Retention: The most loyal customers are often those who are consistently satisfied with their experience. By maintaining high CSAT scores, businesses can increase customer retention and reduce churn rates, ultimately increasing lifetime customer value (CLV). To learn more about what makes a good customer experience, take a look at this article from MaxContact
   
   
4. Make Data-Driven Decisions: CSAT provides valuable data that can guide decision-making. Whether it’s refining product features, improving customer service protocols, or enhancing the online shopping experience, CSAT data offers a tangible basis for strategic decisions.
   
   
5. Increase Revenue: Happy customers are more likely to make repeat purchases and recommend your business to others. Positive word-of-mouth referrals are one of the most powerful (and cost-effective) marketing tools available to businesses, and CSAT plays a key role in cultivating customer loyalty.
   
   

Best Practices for Collecting and Using CSAT

To strengthen the effectiveness of your CSAT data, consider these best practices:

1. Use Simple and Relevant Questions: Keep your survey short and focused. Stick to one or two questions that are directly related to the customer’s recent experience. A clear, concise question such as “How satisfied are you with your recent purchase?” will yield better results than asking for general feedback.
   
   
2. Ask for Feedback at the Right Time: Timing is important when collecting CSAT. Send surveys immediately after a transaction, service interaction, or support call, when the experience is still fresh in the customer’s mind. Avoid sending surveys when customers are likely to be disengaged, such as days after an interaction.
   
   
3. Incorporate Follow-up Questions: While CSAT typically relies on a single question, including a follow-up question asking “What could we do better?” or “Why did you give us that score?” can provide valuable qualitative insights to explain the numbers.
   
   
4. Segment Your Data: Don’t just rely on overall CSAT scores. Break down your data by different segments such as product, service type, customer demographics, or specific support agents. This will help you identify specific areas where improvement is needed.
   
   
5. Act on Feedback: The most important step in using CSAT is acting on the feedback. If your CSAT scores are low in specific areas, take steps to improve those areas. Whether fixing a product flaw, training customer service agents, or streamlining a process, responding to customer feedback will show your customers that you care about their satisfaction. Real-time contact centre data can help you take immediate action.
   
   
6. Benchmark Your CSAT Scores: Compare your CSAT scores with industry averages to understand how your business stacks up against competitors. While benchmarking is useful, focus on continuous improvement rather than simply trying to match or exceed the competition.
   
   

Limitations of CSAT

Although CSAT is a valuable tool, it has its limitations:

1. It’s Subjective: CSAT is based on customers’ perceptions, which can vary depending on individual experiences. A customer may rate a service highly even if there are some flaws, or they may give a low score based on a single issue that doesn’t represent the overall experience.
   
   
2. It Doesn’t Measure Loyalty: CSAT measures satisfaction, not loyalty. Customers can be satisfied with a product or service, but still shop elsewhere for various reasons.
   
   
3. Survey Fatigue: Customers may become overwhelmed if asked to complete surveys too frequently. It’s essential to strike the right balance and ensure surveys are used appropriately.
   
   

Improving Your Customer Satisfaction Score

To improve your customer satisfaction score, you must focus on customer needs, improving your service quality and consistently meeting or exceeding customer expectations. There are many different ways you can improve your CSAT, whether it be through employee training or surveys and feedback forms. If you feel like your CSAT results are too low, then investing in regular training for customer service can be a great way to improve your score. 

Surveys and feedback forms are a great way to improve your CSAT. Make sure that you regularly collect feedback through surveys or questionnaires so that you have a better understanding of your customers' needs and preferences.

If multiple customers make a complaint about a certain product or service, make sure that you regularly update and improve the products or services based on your feedback and market trends.

Turn Satisfaction Into Loyalty

Struggling with customer satisfaction but not sure why or how to fix it? You're not alone. Many businesses face the same challenge: knowing something’s not working, but lacking the insight to pinpoint the problem. That’s where a CSAT (Customer Satisfaction) survey comes in. It gives you the data you need to truly understand how your customers feel and where things might be falling short.

At MaxContact, we don’t just help you collect that data, we help you act on it. By supporting your customer service teams with the right tools, built-in workflows, and real-time performance insights, we make it easier to deliver the kind of experience your customers expect. When your customers are happy, your CSAT scores rise, along with loyalty, retention, and brand trust.

If you’re ready to improve customer satisfaction but don’t know where to start, MaxContact is here to guide you every step of the way. Get in touch to find out more!