Measuring Customer Satisfaction (CSAT)

Learn about the measurement metrics in customer satisfaction (CSAT) and how to leverage Net Promoter Score, CSAT and CES question types to gather data and make smart decisions to grow and improve customer satisfaction based on real insights.

Get Your Free Account Now

Join over
10 million users

Logos
Video

Watch the 1-minute tour

What is Customer Satisfaction?

Customer Satisfaction is the measure of a customer’s delight or dismay while or after the use of an organization’s product or services. This may also apply to customer service experience of the consumer while interacting with the customer.

In the business world, there exist a wide list of tools and tactics implemented to measure customer satisfaction (CSAT). Particular surveys and questionnaire templates may be distributed to the relevant audience with a view to accumulating relevant information and data that can be scrutinized and analyzed into insights for improvement and decision making.

Most often, such data is collected and measured right after a transaction or at a fixed interval using the best survey scales such as Net Promoter Score(NPS), Customer Effort Score (CES) or Customer Satisfaction Score (CSAT) to name a few.

The basic point is to measure how a customer feels after interacting with a business, brand, their service or products.

Surveys and polls are amazing sources to check the customer satisfaction levels. Customer satisfaction surveys are easily the most effective tools to get feedback on the quality of products and services. Using questions like multiple choice or matrix questions can be quite impactful in getting the desired results.

Surveys can also be used to know what the customers think about your market reputation and how you can make improvements. These customer satisfaction surveys can also be instrumental in developing new features or products by scrutinizing customer feedback as they tend to tell you what can and cannot work with respect to the current market trends.

Customer satisfaction surveys can indirectly be beneficial for your employees as well. Instead of being hard on the employees on the basis of the surveys, you can put the feedback to good use. This will make the employees more inclined towards developing better results for your organization.

Common Customer Satisfaction Surveys:

  • Voice of Customer Surveys:Measuring customer opinion on parameters that matter to a business can happen if you ask the right type of questions. This is a template which can give you ready-made survey questions that can be customized to be sent out to your clientele so that you make well-informed decisions.

  • Product Surveys: Performance of a product is hugely reliant on how well-received it is with the customers and so, product surveys play a vital role in understanding aspects of products such as features, cost, usage etc.

  • Service Evaluation Surveys: Service promptness, ease of getting customer service or staff responsiveness are key to keep customers satisfied. By editing this service evaluation survey template you can get insights on how well do you fare in terms of customer service and keep making improvements where there are registered customer complaints.

Learn more:50+ Customer Satisfaction Survey templates>>

Customer satisfaction is an important factor to understand how content customers are with the organization. Poor customer experience leads to almost 90% of the customers discontinuing business with an organization.

To know the level of contentment among customers, you can use various types of customer satisfaction like Customer Satisfaction Score, Net Promoter Score, Customer Effort Score, Likert Scale.

Here are some of the commonly used tools to measure your customer satisfaction and experience metrics:

  1. Net Promoter Score (NPS):

    Net Promoter Score (NPS)is the percentage of the customers that will recommend your company or business to their family, friends or colleagues and is an important tool to measure customer satisfaction and experience metrics.

    Your NPS can be determined by asking a simple Net Promoter Score question to your customers, “On a scale from 0-10 (where 0 being lowest and 10 being highest) how likely are you to recommend us to your family or friends?”

    NPS_Formula

    Your NPS can be calculated by subtracting the Detractors from the Promoters.

    Net_Promoter_Score_Customer_Satisfaction

    Why measure NPS?

    There are a number of studies conducted that have already shown that NPS results have a significant impact on the business of a brand or an organization. Some might argue and say NPS is just a snapshot of a customer’s sentiments, however, these sentiments actually determine whether the customers will recommend your brand or not.

    This customer satisfaction and experience metrics facilitate in-depth feedback and if you have the right platform you can even convert your detractors into promoters by immediately addressing their issues with an excellent customer service.

  2. Customer Satisfaction Score (CSAT):

    Customer satisfaction is an important tool that helps you understand if you have surpassed or not your customer’s expectations with respect to your product or services and helps you measure customer satisfaction and experience metrics.

    Customer Satisfaction (CSAT) Score is measured by sending customers a survey asking them to rate their level of satisfaction with the interaction on a scale of “Not satisfied at all” to “Very satisfied.”

    Customer_Satisfaction_Score_(CSAT)

  3. Customer Effort Score (CES):

    Customer Effort Score (CES) is a survey metric used to measure the level of customer satisfaction and experience, usually by asking a single question with an effort to increase customer loyalty and decreasing customer effort.

    Simply put, more the customer efforts lesser is the customer loyalty. A business or an organization constantly strives to make their customer effort “effortless”. An excellent customer experience directly results in reducing customer efforts.

    Customer_Effort_Score_for_Customer_Satisfaction

  4. Customer Churn:

    Customer churn is an experience where the customers or clients stop purchasing products or availing services from a brand. Customer churn is also known as customer attrition.

    Customer churn rate or customer attrition rate is the mathematical calculation of the percentage of customers who are not likely to make another purchase from a business.Its extremely important to keep the customer churn rate low for any business, as acquiring new customers is a fairly costly affair. Also, existing customers when satisfied with a brand, are great brand ambassadors and help spread a positive word of mouth and recommend your brand or services to their family, friends, and colleagues.

    Customer churn rate is the number of customers you have lost divided by the total number of customers. To have an estimate you can segment your customers on the basis of the frequency of their purchase.

    Customer_Churn

    This formula helps your calculate the customer churn rate and can be successfully applied to understand if it leads to an incremental revenue churn.

Every organization has its unique methods to garner feedback regarding customer satisfaction. These methods are broadly categorized into two surveys on the basis of the type of niche the organization belongs to or target audience:

  • Direct Transaction Survey:

    In cases where the organization requires immediate feedback after customer transactions, this type of customer satisfaction is conducted.

    For example, at a kiosk survey asking the buyers to provide immediate responses or a pop-up survey after an online transaction that asks the customers questions such as “How was your shopping experience?”. The purpose of conducting this survey is not to understand the detailed opinion of customers but is to keep a tab on the latest transaction experiences.

  • Overall Satisfaction Survey:

    These surveys are conducted to understand an organization’s bigger picture in the eyes of the customers. They’re also known as “relationship surveys” as they’re generally used to maintain customer relationship by gauging customer experiences whether good or bad.

    Usually, overall satisfaction customer surveys are conducted in disguise of direct transaction surveys to learn about customer satisfaction regarding their entire experience with an organization.

Service quality is an aspect that affects customer satisfaction but isn’t the only parameter deciding it. Service quality reflects customer perspective towards your products and services in comparison to their expectancy.

Higher service quality directly leads to an increase in customer satisfaction which will save time and efforts that are put in towards maintaining a standard of maintaining customer satisfaction. Due to globalization and technological advances happening every day, it has become extremely critical to bring a balance to customer satisfaction and service quality. This can be achieved by imparting the importance of service to the staff members who are dealing directly with customers and also by giving utmost importance to customer service.

×
×