Customer satisfaction is more than a “nice-to-have” measure. It greatly impacts customer loyalty, retention, and long-term profitability.
But to harness these benefits, your business needs a clear, actionable understanding of customer satisfaction. That’s where CSAT comes in.
The Customer Satisfaction Score (CSAT) is the most straightforward way to measure customer satisfaction. This metric provides valuable insights into how customers perceive their experiences with your product/service/brand.
Because it’s so widely used, CSAT is a key benchmark across industries. It can help you understand how your business compares to competitors, and you can use it to track your company’s progress over time. But how do you ensure your CSAT surveys yield the best possible insights?
How to measure customer satisfaction with CSAT surveys
With a CSAT survey, you can ask your customers about their recent experiences. It’s on you to ensure that the data accurately reflects customer sentiment.
Let’s go through the essentials of designing and conducting high-quality CSAT surveys.
Understanding CSAT surveys
A CSAT survey typically asks customers to rate their satisfaction on a scale.
The most commonly used question is straightforward: “How satisfied were you with your recent experience?” This question is accompanied by a satisfaction scale, such as:
- 1 to 5 scale (where 1 = very dissatisfied and 5 = very satisfied) This is by far the most common way to structure a CSAT survey.
- 0 to 10 scale (where 0 = extremely dissatisfied and 10 = extremely satisfied)
- 1 to 3 scale (where 1= dissatisfied and 3 = satisfied, and it’s common to use ☹️, 😑 and 🙂 instead of numbers)
- Binary choice (simply “satisfied or unsatisfied”)
These options offer flexibility in designing a survey that aligns with the company’s objectives and customer expectations.
The CSAT formula — How to calculate a CSAT score
Calculating the CSAT score is a straightforward process that provides a clear, numerical representation of customer satisfaction levels.
By using a simple formula, you can quickly interpret customer feedback and make data-driven decisions.
The CSAT formula
This formula yields a percentage that reflects the proportion of customers who report being “satisfied” or “very satisfied” with their experience.
Step-by-step calculation of CSAT
- Collect responses using a satisfaction scale — Conduct a survey asking customers to rate their satisfaction on a scale. Using a 1–5 scale, consider responses of 4 and 5 as “satisfied” ratings.
- Count the satisfied responses — Tally up the number of responses that fall within the “satisfied” range (e.g., ratings of 4 and 5).
- Calculate the CSAT score — Divide the number of satisfied responses by the total number of responses and multiply by 100 to get the percentage.
Most companies use a 1-5 scale, and this is your best bet if you want to compare your own score to industry averages. If you prefer the more nuanced 1-10 scale instead, it’s best to count ratings of 8, 9, and 10 as “satisfied”. With a 1-3 stale, only 3 means “satisfied”.
Example calculation
Let’s go through a quick example for clarity. Suppose you have:
- Number of satisfied responses (a rating of 4 or 5 out of 5) = 63
- Total responses = 92
Using the CSAT formula, we get:
The CSAT score is approximately 68.5%, indicating that around 68.5% of customers were satisfied with their experience.
While CSAT scores give a clear percentage, their meaning can vary based on context.
Higher scores indicate stronger satisfaction, and many companies aim for CSAT scores above 80% as a benchmark. However, it’s crucial to consider industry standards, as a good CSAT score in one sector (e.g., retail) may differ from another (e.g., healthcare).
Designing effective CSAT survey questions
For a CSAT survey to be effective, the questions should be clear, concise, and purpose-driven.
Below are tips for creating questions that yield valuable insights:
- Use a consistent rating scale — A standard rating scale (like 1 to 5) helps customers respond intuitively and provides a uniform way to compare results over time. Plus, data analysis is simpler with consistent rating scales.
- Include open-ended questions — While the main CSAT question is typically quantitative, adding an optional open-ended question allows customers to explain their rating in their own words, providing valuable qualitative insights.
- Limit the number of questions — Keep the survey short and relevant to avoid survey fatigue. A single satisfaction question, possibly followed by an optional open-ended prompt, might be your best bet.
Recommended reading: All you need to know about satisfaction survey questions
Timing and frequency of CSAT surveys
The timing of a CSAT survey can greatly influence the feedback received. Here are a few timing strategies to consider:
- Post-interaction surveys — Sent immediately after an interaction (e.g., post-purchase or after a customer service call), these surveys capture feedback while the experience is fresh in the customer’s mind.
- Periodic surveys — These surveys are sent at regular intervals, like monthly or quarterly, to gauge satisfaction over time. This approach works well for subscription-based or long-term service businesses that benefit from ongoing satisfaction data.
- Event-triggered surveys — In situations like a new product launch or website redesign, conducting CSAT surveys after these events can offer insights into customer responses to changes or new features.
By designing surveys that align with the company’s specific goals, organizations can gather reliable data and create a roadmap for improvement based on real customer experiences.
What is a good CSAT Score? Benchmarks and industry standards
Determining what qualifies as a “good” CSAT score can be relative, as the target score often depends on the industry, business type, and customer expectations.
Still, general benchmarks and industry standards can offer guidance on what to aim for when assessing customer satisfaction.
Understanding “good” CSAT scores
In most industries, a CSAT score above 80% is generally considered strong, indicating that a significant majority of customers report satisfaction. Scores in the 90% range are typically regarded as excellent and suggest that the business is meeting or exceeding customer expectations consistently. However, benchmarks can vary widely across industries:
- Retail and E-commerce — A CSAT score between 80% and 85% is often seen as good, reflecting that customers are happy with their purchases and the shopping experience.
- Hospitality and tourism — Here, satisfaction expectations are high, and a CSAT score of 85% or higher is generally desirable. This industry heavily relies on customer satisfaction for reputation and repeat business.
- Healthcare and financial services — Given the complexity and high stakes in these sectors, a CSAT score between 70% and 80% is often acceptable. These industries tend to face unique challenges, including regulatory requirements and personal stakes that impact satisfaction.
- Technology and SaaS — Aiming for a CSAT score around 80% is a good target, although scores between 75% and 85% are common due to varying product complexities and user expectations.
- Telecommunications — Generally, a CSAT score between 70% and 80% is considered strong in this sector, as service reliability and customer support often pose challenges.
Evaluating CSAT in context
A good CSAT score should be evaluated not only against industry averages but also against internal performance metrics and historical data.
Tracking the CSAT score over time allows companies to monitor improvements and dips, helping identify factors that may be influencing satisfaction levels, such as seasonal demand, new product launches, or service enhancements.
Setting realistic targets based on industry standards while continuously striving for improvement is key. Remember, a “good” CSAT score isn’t a fixed number—it’s a dynamic indicator that reflects the health of customer relationships and the effectiveness of a business’s customer service and experience efforts.
Why the Customer Satisfaction Score matters
At its core, CSAT quantifies the immediate reactions and impressions that customers have after specific interactions. It serves as a critical tool because it provides quick, actionable feedback.
The importance of CSAT in business success
💞 Customer loyalty and retention — Satisfied customers are more likely to remain loyal to a brand. A high CSAT score indicates that customers are happy with their experience, which directly contributes to loyalty and reduces churn rates.
✨ Positive brand perception — Consistently high CSAT scores help shape a positive brand image, building a reputation for reliability and quality. This attracts new customers through word-of-mouth referrals and online reviews.
🔄️ Feedback loop for continuous improvement — CSAT offers an effective way to identify areas for improvement. By tracking CSAT scores across different touchpoints, your team can pinpoint specific issues—whether in product quality, service delivery, or customer support—that may need refinement.
🎯 Alignment with business goals — CSAT supports business growth by aligning with key performance indicators (KPIs). For instance, an increase in CSAT can indicate successful customer-centric initiatives, justifying investments in customer experience (CX) strategies and guiding future decisions.
In a business environment where customer expectations are constantly evolving, CSAT acts as a reliable measure that enables your business to keep up with and adapt to these changes.
Factors affecting CSAT scores
1. Product or service quality
At the foundation of any positive customer experience is the quality of the product or service itself. Customers expect a product to meet certain standards, such as durability, usability, and value for money. When a product performs well, it directly boosts satisfaction levels, often translating into higher CSAT scores.
- Consistency in quality matters, especially for repeat customers.
- Product improvements based on customer feedback can prevent dissatisfaction and support rising CSAT scores over time.
2. Customer service experience
How well a company handles customer inquiries, complaints, and service requests significantly impacts CSAT. Customers expect quick, friendly, and knowledgeable responses from customer service representatives.
Recommended reading: How to provide service excellence
Even if there’s a problem with the product or service, effective customer service can help resolve issues and even improve satisfaction.
- Response time — Customers value swift responses. Long wait times for support often lead to lower satisfaction.
- Empathy and personalization — Customers appreciate service reps who understand their issues and personalize responses rather than relying on scripted answers.
3. Ease of access and convenience
Whatever your industry is, your customers want convenient, hassle-free access to your product/service, and they want support interactions to be straightforward.
If an interaction is challenging or inconvenient, satisfaction can suffer, even if the product itself is excellent. Ensuring a smooth, streamlined experience across all channels and touchpoints (e.g., website, mobile app, in-store) is crucial.
- Omnichannel experience — Customers increasingly interact with brands across multiple channels, so a consistent and seamless experience on each platform positively impacts CSAT.
- User experience — Whether it’s an intuitive website, a well-designed mobile app, or efficient in-store navigation, an easy-to-use interface can enhance satisfaction.
4. Price-value perception
Customers often compare the cost of a product or service to the perceived value they receive in return. If customers feel they are getting good value for their money, they’re more likely to be satisfied. On the other hand, if prices seem high without a corresponding increase in quality, CSAT scores may dip.
- Transparent pricing — Hidden fees or unexpected costs often lead to frustration, negatively impacting CSAT.
- Perceived fairness — Customers are more satisfied when they feel the pricing is fair compared to competitors.
5. Company reputation and trust
Customer satisfaction isn’t solely based on individual experiences; it can also be influenced by a company’s broader reputation. Customers tend to feel more satisfied and confident in a company with a strong reputation for quality, integrity, and social responsibility.
- Corporate Social Responsibility (CSR) — Brands that demonstrate a commitment to positive societal impacts often see higher CSAT scores, as customers feel good about supporting them.
- Brand consistency — Consistently delivering on promises (e.g., delivery times, product features) helps build customer trust, increasing satisfaction.\
6. External factors and market dynamics
Unfortunately, customer satisfaction can also be affected by external, uncontrollable factors such as economic shifts, societal trends, and competitor actions. During an economic downturn, customers may become more price-sensitive, affecting satisfaction scores even if product quality remains unchanged.
- Economic conditions — Inflation, unemployment, and other economic factors can influence how customers perceive value, potentially affecting CSAT.
- Seasonal demand — During peak times (e.g., holidays), an increase in demand may impact service quality and product availability, leading to fluctuations in CSAT.
Understanding these factors allows businesses to better interpret their CSAT scores and implement proactive strategies to address areas where satisfaction might be falling short.
CSAT vs. other customer satisfaction metrics
CSAT is part of a broader ecosystem of metrics, each offering unique insights into customer experience.
To get a comprehensive view of customer sentiment, businesses often use CSAT in conjunction with other key metrics.
1. Net Promoter Score (NPS)
NPS measures customer loyalty by assessing the likelihood that a customer will recommend the business to others. Unlike CSAT, which focuses on immediate satisfaction, NPS captures long-term loyalty, providing insight into the strength of the customer’s relationship with the brand. A high CSAT doesn’t always equate to a high NPS; a customer may be satisfied with a transaction (CSAT) but not loyal to the brand long-term (NPS).
2. Customer Effort Score (CES)
CES measures the ease of interaction with a business. It assesses how much effort a customer had to exert to resolve an issue, make a purchase, or get help. This metric highlights areas where reducing customer effort can enhance satisfaction. It helps businesses identify and remove friction points in the customer journey.
A customer may rate their satisfaction highly but may still feel the process was unnecessarily difficult—something CES would capture
3. Customer Lifetime Value (CLV)
CLV isn’t a customer satisfaction metric per se, but it’s an important complementary metric that reflects the potential revenue a customer will bring to the business over their entire relationship. It’s calculated by predicting the average transaction value, purchase frequency, and duration of the customer relationship.
High CLV is often correlated with high satisfaction, as satisfied customers tend to make repeat purchases and engage more with the brand.
Improvem
Combining CSAT, NPS, and CES for comprehensive insights
- CSAT measures immediate, transaction-based satisfaction.
- NPS captures brand loyalty and willingness to recommend.
- CES highlights ease and friction in customer interactions.
By evaluating these metrics in tandem, you can address specific areas (e.g., ease of use, brand loyalty) while also gaining a big-picture understanding of customer relationships. For example, if CSAT and CES scores are high but NPS is low, you may need to strengthen your company’s long-term brand appeal, even if it’s performing well in individual transactions.
Common CSAT mistakes
Missteps in managing CSAT can lead to inaccurate results and misguided actions. Here are some frequent errors to watch out for—and tips on how to sidestep them.
1. Overlooking survey timing and context
Sending CSAT surveys at the wrong time or without context can distort the accuracy of responses. The timing of survey deployment significantly impacts the feedback customers provide.
❌ Conducting CSAT surveys too long after the customer interaction.
✅ Send surveys immediately after key interactions (like a purchase or support call) while the experience is still fresh in the customer’s mind.
❌ Leaving the question too vague or confusing.
✅ Make it clear which interaction, product, or service the customer is giving an opinion on.
2. Using ambiguous rating scales
Unclear rating scales can confuse customers, leading to inconsistent or unreliable responses. For example, a “1 to 5” scale with poorly defined labels might not mean the same thing to every customer.
Use a clear and simple scale with labeled descriptions for each point (e.g., “1 – Very Dissatisfied” through “5 – Very Satisfied”). Alternatively, try an emoji-based scale or binary options.
3. Neglecting open-ended feedback
Relying solely on quantitative scores without collecting qualitative feedback can leave critical insights undiscovered. The numerical CSAT score alone may not fully explain the reasons behind customer satisfaction or dissatisfaction.
Always provide an optional open-ended question, like “What made you rate us this way?” This can reveal specific pain points or positive factors that the rating alone doesn’t capture.
4. Ignoring CSAT results or failing to act
A CSAT survey’s value lies not just in gathering feedback but in responding to it. Ignoring the insights gained from CSAT scores can damage customer trust and retention.
Establish a clear process for reviewing and acting on CSAT feedback. Share insights across relevant departments, prioritize recurring issues, and update customers on improvements based on their feedback.
5. Focusing solely on high scores
While high CSAT scores are a positive indicator, solely focusing on the positives without addressing low scores misses valuable improvement opportunities. Customers who rate their experiences poorly are offering critical insights into areas that need attention.
Recommended reading: How (and why) to ruin your CSAT score
6. Failing to segment CSAT data
Interpreting CSAT data without segmentation overlooks important distinctions among different customer groups. CSAT scores can vary widely by customer type, product line, or service channel.
❌ Analyzing CSAT scores as a single aggregate number without breaking down responses by customer demographics, product type, or other factors.
✅ Segment CSAT results to identify trends specific to different customer groups or interactions. For example, separate feedback for new versus returning customers or segment data by location or product. This allows for more targeted improvements based on customer profiles.
7. Assuming customer feedback is always objective
Psychology plays a subtle yet significant role in how customers respond to satisfaction surveys. Factors like mood, recent experiences, and even the wording of questions can impact CSAT scores. For example:
- The peak-end rule means that people tend to remember the peak (best or worst part) and the end of an experience more vividly than the rest. If a customer’s interaction ends on a positive note, they are more likely to rate their satisfaction higher.
- Because of recency bias, customers tend to rate based on recent events rather than the entire experience. This means that if a recent issue was resolved right before the survey, they might rate the experience positively even if previous interactions weren’t as smooth.
- In high-context cultures (e.g., Japan), customers may be less vocal about dissatisfaction to avoid conflict, potentially giving a “neutral” rating even if they’re unsatisfied. In contrast, customers in low-context cultures (e.g., the U.S.) are generally more direct in expressing both satisfaction and dissatisfaction. This is part of why segmentation is so important.
It’s important to learn all you can about customer biases and never rely solely on a single piece of feedback. The higher your feedback rates become, the less you’ll have to worry about the results being skewed.
Strategies to improve CSAT
1. Enhance customer service quality
Customer service is often the defining moment of a customer’s experience with a brand. A prompt, friendly, and knowledgeable response to inquiries and issues significantly boosts satisfaction.
You must equip your team with both product knowledge and interpersonal skills. Well-trained agents can resolve issues faster, understand customer emotions, and provide personalized solutions.
Our experience shows that more autonomy leads to better results in customer support. When agents are empowered to make decisions (e.g., offering additional assistance without managerial approval), customers benefit from quicker, more satisfying resolutions. And by caring personally for each customer, they ensure loyalty and excellent communication.
The more your customers trust your Service team, the more feedback they will share. So not only will your CSAT score rise, you’ll likely get higher response rates over time.
Recommended reading: Achieve amazing service quality with RATER metrics
2. Reduce response times across channels
A key driver of satisfaction is the speed with which customer inquiries are addressed. Waiting too long for help can frustrate customers, impacting their satisfaction levels. Live chat tools and AI-powered chatbots can help with that, as long as it’s always possible to reach a human when necessary.
Omni-channel support is a must as well. Offering support across various channels (e.g., phone, email, social media) lets customers choose their preferred method of communication.
3. Personalize customer interactions
Personalization shows customers that they’re more than just a number. From addressing customers by name to recommending products based on past purchases, personalization fosters a stronger, more positive connection.
Use data from past interactions and purchase history to personalize recommendations and support. Avoid scripted answers and strive for personalized replies that demonstrate understanding of the customer’s specific issue or question.
Most importantly, follow up. A quick check-in after an issue is resolved can make customers feel cared for and appreciated, increasing the likelihood of higher satisfaction ratings.
4. Encourage and act on customer feedback
Inviting feedback is essential to improving CSAT. It provides a direct line to the customer’s thoughts and reveals specific areas for improvement. The real impact, however, lies in how this feedback is utilized.
- Create a seamless feedback loop. Regularly ask customers for feedback via CSAT surveys, follow-up emails, or post-purchase surveys. The more feedback you gather, the more data you have to improve.
- Analyze and prioritize feedback. Not all feedback carries the same weight. Prioritize feedback that highlights common issues or suggestions and take action to address them.
- Close the feedback loop. When customers see that their feedback has led to real changes, they feel valued and more likely to continue engaging with the brand. Inform customers when you implement changes based on their suggestions—it shows commitment to their satisfaction.
5. Optimize the user experience (UX)
The usability and accessibility of a brand’s website or app significantly impact satisfaction. A seamless, intuitive user experience is essential to ensuring that customers can easily navigate, find information, and complete transactions. It also increases CSAT response rates: if users enjoy interacting with your brand, they’re more likely to leave feedback.
Pages should load quickly, and customers should be able to find information or complete tasks without frustration. Self-service options, such as FAQs, help centers, and tutorials, need to be readily available.
6. Build a customer-centric culture across departments
A customer-first culture ensures that every team member, regardless of department, understands the importance of customer satisfaction and actively contributes to it.
From product development to marketing, ensure that every department considers how their actions impact customer satisfaction.
And the reverse is also true: every department can learn from CSAT scores, and that is the only way to achieve sustainable growth.
7. Proactively address common pain points
You can analyze past support tickets in tandem with CSAT scores to identify recurring issues.
If certain complaints come up repeatedly, take steps to address the root cause. For instance, if slow delivery times are a common complaint, consider optimizing logistics or partnering with faster carriers.
Most importantly, communicate changes to customers. This not only boosts satisfaction but lays the foundation for lasting changes.
The power of listening to your customers
CSAT is more than just a number. It’s a window into the thoughts, feelings, and experiences of the people who sustain your business. Each time a customer rates their satisfaction, they’re offering you something invaluable: insight into their journey, their needs, and, most importantly, their trust in your brand.
So start building a culture of listening. Lean into the feedback, positive and negative, and use it as a compass instead of a trophy. Every score is an opportunity to strengthen your connection with customers. That is how you’ll keep exceeding your own business goals.
About Simplesat: Simplesat is the leading omnichannel survey app designed to enhance customer feedback management across various platforms, including Zendesk. Trusted by businesses worldwide, Simplesat delivers actionable insights that drive business growth and customer satisfaction.
