Knowledge is power—especially when you’re looking to improve your customer experience. According to the Zendesk Customer Experience Trends Report 2022, customer engagement is up 14 percent compared to last year. While this means more work for your support agents, it also means there are more opportunities for you to expand and retain your customer base. Show
Regardless of industry, customer satisfaction score (CSAT) is one of the most popular metrics for gauging how consumers feel about the customer experience (CX). When you collect CSAT scores, you give buyers the opportunity to voice their opinions, making them feel heard. This not only fosters customer loyalty but also allows you to learn where you’re excelling (and where you’re not). If you’re looking to become a customer-centric business, it’s important to understand how CSAT helps make that happen. What is customer satisfaction score (CSAT)?Customer satisfaction score is a CX metric and key performance indicator (KPI) that gauges how satisfied a consumer is with a product, a service, a specific interaction, or the overall experience with a brand. Companies measure CSAT with a survey that asks, “How satisfied are you with [product/service/experience]?” Along with the question, there’s a five-point scale customers use to illustrate their satisfaction. There’s also usually a comment box where respondents can provide support and reasons for their rating. By capturing feedback at key interaction points in a buyer’s journey, CX metrics like CSAT provide teams with quantitative and qualitative data that can help decision-makers take action to improve customer sentiment and business processes. Both consumers and companies alike consider customer service a brand differentiator with the power to make or break the customer experience. According to our CX Trends Report, 73 percent of business leaders say there’s a direct link between customer service and financial performance. If companies want to increase profitability and brand loyalty, they need to use customer feedback (like CSAT scores) to their advantage. CSAT vs. Customer Effort Score (CES) vs. Net Promoter Score® (NPS)CSAT, CES, and NPS are the most commonly used customer satisfaction metrics because they’re straightforward and simple to implement. In short:
Like CSAT, CES is measured using a survey. It asks customers to rate the ease of their interaction on a scale of “very easy” to “very difficult.” Teams can also focus the question on certain tasks, such as communicating with support agents, purchasing or returning products, or leaving reviews.
NPS data is collected through a survey, too. An NPS survey typically asks, “How likely are you to recommend us to someone you know?” Customers rate their likelihood on a scale of 0 to 10, with 10 being “very likely” to recommend. A few advantages of each metric:
While each KPI has its advantages, they’re best used in conjunction with one another. This will give you a well-rounded view of your customers’ feelings about, and interactions with, your company. Benefits of measuring customer satisfactionThough CSAT data is easy to gather, don’t let the simplicity fool you. According to The State of Digital Customer Experience, CSAT is the top metric companies use to measure digital CX improvement. Here’s why. Gain a better understanding of your audienceUnmet expectations lead to dissatisfaction. By collecting user feedback during key touchpoints, you learn whether you’re meeting—and hopefully exceeding—your audience’s needs. This not only helps you discover exactly what your customers are seeking from your product or service, but it also provides insights into the challenges or bottlenecks they face along their journey. Improve customer retention and loyaltyWhen you have a large customer base, it can be difficult to identify individual buyers who are at risk of churning. By studying CSAT scores, you can often pinpoint unhappy customers, giving you time to make adjustments before you lose them. Plus, when consumers see that you’re actively improving your products and processes based on their feedback, it speaks volumes about your company’s commitment to its customers. CSAT metrics aren’t only useful for preventing dissatisfaction or customer churn; they can also help you create brand advocates. While you should certainly pay attention to—and act on—negative feedback, positive comments can be just as beneficial for growing your business. Pay attention to those who give you top scores and reach out to them. Thank them for their business, and ask them to leave a review or share their experience on social media. How to calculate customer satisfaction scoreThe first step is to send a customer satisfaction survey. Once you receive your responses, you can determine your CSAT in one of two ways: a composite customer satisfaction score (which is simply the average of your survey scores) or a more detailed customer satisfaction score (which measures the percentage of customers who consider themselves “satisfied” or better). To calculate the composite customer satisfaction score, divide the sum of all scores by the sum of the maximum possible scores, then multiply the result by 100 to get a percentage. We recommend using the more detailed customer satisfaction score calculation, as it’s more useful for determining the number of happy customers. To calculate this percentage, first divide the total number of customers who are “very satisfied” (5) or “satisfied” (4) by the total number of responses. Then, multiply that result by 100 to get your customer satisfaction percentage. Let’s review an example. Say you survey a group of customers and receive the following responses:
The composite customer satisfaction score for this data set is 70 percent: 35 ÷ 50 = 0.7 The detailed customer satisfaction score for this data set is 50 percent: 5 ÷ 10 = 0.5 According to Qualtrics, using only positive responses in your calculation is more beneficial. Why? Because using the two highest values on CSAT surveys is “the most accurate predictor of customer retention.” When and how to use customer satisfaction score surveysYou can send CSAT surveys to your customers at any point during their journey, but the three most common touchpoints are: after a support interaction, after a purchase, and after onboarding.
Surveying your customers after these three common touchpoints provides a well-rounded view of their overall sentiment toward your team, company, and products or services. You can also measure CSAT at key moments in the customer journey—particularly after “customer lifecycle moments.”
When gauging satisfaction, you want the experience to be fresh in your customers’ minds, so it’s important to send CSAT surveys in a timely manner. It may be helpful to set up automated surveys that are triggered by an interaction (agent support, purchase, and onboarding). You can send out randomly timed surveys for the lifecycle moments. What can you measure with CSAT surveys?To put it simply, you can evaluate buyers’ level of satisfaction (or dissatisfaction) with your company, products, services, and customer support. Along with overall satisfaction, CSAT surveys can provide insights into consumers’ experiences with your support agents. They can shed light on several areas, including:
CSAT surveys can also measure customer sentiment in other areas critical to your company’s success, such as:
Once you’re ready to design your CSAT survey, make sure you customize it to capture the specific information you’re seeking. If you need a jumping-off point, we have CSAT survey templates and best practices available for your reference. Free customer experience guideFind out how to create great customer experiences that will lead to loyal customers, improved word-of-mouth promotion, and increased revenue. What is a good CSAT score?Although there are loose guidelines around the CSAT score you should shoot for, it’s not an exact science. Every business, product, and service is different, so what’s considered a good score for one industry may not be good for another. That being said, most brands consider CSAT scores between 75 and 85 percent to be adequate. Resources such as the American Customer Satisfaction Index (ACSI) can help you find “typical” CSAT scores for your industry. The ACSI provides CSAT score benchmarks for a number of business sectors as well as individual companies. Regardless of your specific percentage, if your CSAT score increases over time, your team is doing something right. Track your progress by measuring CSAT regularly and making it a part of your overall CX strategy. CSAT scores by industryACSI data shows that the overall U.S. customer satisfaction score is 73.55 percent. Find a complete list of CSAT benchmarks (shown in percentages) by industry below: Specialty
retailers: 77 Airlines: 76 Municipal: 73 Inpatient care: 70 Consumer shipping: 74 Subscription TV service: 65 Full-service: 80 Automobiles: 78 Nondurable products
Banks: 78 Social media: 70 Of course, this isn’t an exhaustive list of every existing sector and business type. But it’s a good place to start for benchmarking your CSAT scores against industry averages. How to improve your CSAT scoreIf you’re dissatisfied with your CSAT score, don’t worry too much—you can fix it. And if you’re happy with your score, it’s still good to have an improvement plan in mind. There are several tactics you can use to improve your CSAT score, but we’re going to focus on some of the most actionable options.
Align your CSAT metrics with your CSAT goalsHow you use your customer satisfaction score will largely depend on the products and services your company offers. Your overall CX strategy should dictate the CSAT metrics you choose to measure in your surveys. But before putting any data into action, you’ll want to create goals for your CSAT metrics. After all, calculating CSAT does nothing to help your CX if you don’t use the information to improve your products, services, support processes, or overall business practices. What do you mean by customer satisfaction?Customer satisfaction is defined as a measurement that determines how happy customers are with a company's products, services, and capabilities. Customer satisfaction information, including surveys and ratings, can help a company determine how to best improve or changes its products and services.
What type of customer service is required to improve customer satisfaction?Trained customer service has better records and significantly increases customer satisfaction and loyalty. A recent survey of US-based customers said 69% of them feel customer service is highly essential for their loyalty towards a brand.
How can information about customer satisfaction be collected?There are three useful variations of these surveys: In-App Surveys. Post-Service Surveys. Long Email Surveys.
What are the methods used to obtain responses from customers?By the end of this post, you'll have all the information you need to answer it.. Customer feedback surveys. ... . Email and customer contact forms. ... . Usability tests. ... . Exploratory customer interviews. ... . Social media. ... . On-site activity (via analytics) ... . Instant feedback from your website.. |