What is CSAT?
CSAT is the abbreviation for Customer Satisfaction. CSAT measures customer satisfaction on a range of points that are typically focus areas for the company. These can include the customer’s overall satisfaction with your business or specific touchpoints in the customer journey that are critical for their future choice of supplier. CSAT delves deeper into specific areas than, for example, NPS, which primarily measures customer loyalty.
CSAT is usually structured on a scale that is predetermined. For example, the scale might range from 1 to 7, with labels on the endpoints such as “Strongly Agree/Satisfied/Important” to “Strongly Disagree/Dissatisfied/Not Important at All.” The scale can be presented with a weighted score for added insight.
Additionally, by giving respondents the opportunity to comment on their chosen score, you can gain a deep understanding of your customer base’s satisfaction with each specific focus area.
How CSAT creates value
CSAT adds value to your business by providing insights into how your customers perceive selected focus areas related to your brand, services, and products. It gives your customers the opportunity to share their experience on specific areas that you choose to present to them. Ultimately, this provides you with a data-driven foundation to focus your efforts on the individual areas.
Depending on how the survey framework is structured, a high CSAT score would indicate that customers are satisfied with a particular focus area. In addition, customer comments provide further nuances that strengthen the overall data foundation.
The days of large-scale surveys are over.
If you wish to include many questions in your customer satisfaction survey, it can be beneficial, depending on the situation, to distribute the questions across multiple surveys or to target different groups of respondents with specific questions. A smaller number of questions also has the advantage of making the follow-up work on corrective actions more focused, and the response rate is typically significantly higher.
CSAT gives you the opportunity to obtain a focused data foundation to steer your business in the optimal direction.
The CSAT Scale
To calculate your CSAT score, you typically ask questions focused on the areas where you want customer feedback, such as: “How satisfied are you with the service you received?” Respondents rate their satisfaction on a scale.
Examples of Scales for CSAT:
Numerical Scale: For example, 1 Very Dissatisfied, 2 Dissatisfied, 3 Neutral, 4 Satisfied, 5 Very Satisfied
Star Rating: 1 star = Dissatisfied, 2 stars, 3 stars, 4 stars, 5 stars = Very Satisfied
Emoji Scale: Sad face, Slightly sad face, Neutral face, Smiling face, Laughing face
Calculation of CSAT Score:
To calculate your CSAT score, you focus on the positive responses (typically the top two values on the scale, such as 4 and 5 on a 5-point scale). The number of positive responses is divided by the total number of responses and then multiplied by 100 to give a percentage. The formula is as follows:
Importance and Use of Data
Why is CSAT important?
A high CSAT score at individual touchpoints indicates that customers are satisfied, which often leads to repeat business and word-of-mouth recommendations. On the other hand, a low score can provide the company with an early warning of potential problems that could affect customer loyalty.
Use of CSAT Data:
Data from CSAT measurements can be used to make adjustments to products or services, improve customer service, or even guide product development. By continuously monitoring CSAT, companies can stay up to date with customer expectations and preferences.
Implement CSAT as a Strategic Tool:
Overall, CSAT is a simple but effective tool for measuring customer satisfaction and loyalty. It allows companies to get valuable feedback from their customers, and can help them improve their products and services and increase customer loyalty.
Contact CleverInsight
If you are interested in learning more about how measurements of customer loyalty, CXS, CSAT, and employee satisfaction & well-being can be implemented in your company, we are ready to provide you with a non-binding introduction. If you are already looking for a solution, we are of course also ready to present our user-friendly, Danish-developed system to you. Call, write, or book a meeting right away.