CSAT Score is short for customer satisfaction score, and is an indicator of how satisfied customers are with your business’ products, services and procedures. It’s usually expressed as a percentage, meaning that a 100% score would mean every single customer is pleased with their experience with you, whereas a lower score would indicate more negative feedback.
A CSAT score is generally calculated from a survey question where customers are asked to rank their experience from 1 to 5, with 1 being very unsatisfied, up to 5 which is very satisfied. Their simplicity is both a blessing and a curse, since while they do give easy and quick information they aren’t able to capture the depth of issues, although they can indicate problem areas. These questions usually end up at the bottom of a survey, or as a quick pop-up after a purchase on a website.
Despite the ideal score being a perfect 100%, a score of 80% and above is generally considered an indicator of success, although this of course will vary by industry. After all, an 80% chance of satisfaction is nowhere near high enough for a service as crucial as repairing a car’s worn brake pads! CSAT is a good way of measuring single interaction satisfaction, but lacks a wider view of the customer journey – use an NPS for a bigger picture view.
How to calculate CSAT Score
To calculate your CSAT score, you need to take the data from the 1 to 5 scale mentioned above. Any customer who ranks their experiences as either a 4 or a 5 is counted as a satisfied customer, as those who give those results are more likely to be retained as customers (in the event that you can offer more services to them, of course).
The calculation can be performed as follows:
- Sum the number of customers who gave a 4 or a 5 as their response.
- Divide by the total number of customer responses.
- Multiply by 100 to get your answer as a percentage.
In mathematical terms:
CSAT = (Number of satisfied customers (4 or 5 as a response) / Number of total customer responses) 100
This calculation assumes that anyone who ranked their experiences as 3, which is neutral on most scales, wouldn’t be likely to be a retained customer. While this is true in broader terms, it depends on several factors which might affect it such as your market share and how many bad experiences they have undergone out of how many total.
Bear in mind that CSAT can only focus on one interaction with your customer, and so shouldn’t be taken as a blanket measure of the customer experience you provide.