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What is CSAT

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Customer Satisfaction (CSAT) is a measure of how happy your customers are with your products or services. It's usually determined through surveys, questionnaires, or direct feedback from customers. CSAT scores are typically expressed as a percentage, with 100% being the highest level of satisfaction.

CSAT surveys typically ask customers to rate their satisfaction with a specific interaction or experience, often using a scale of 1 to 5 or 1 to 7. Questions like "How satisfied are you with our service?" or "On a scale of 1 to 5, how would you rate your experience?" are common in CSAT surveys

How To Calculate CSAT

Calculating Customer Satisfaction (CSAT) is a straightforward process that involves using survey responses to determine the overall satisfaction level of your customers. Here's a step-by-step guide on how to calculate CSAT:

Step 1: Design Your CSAT Survey

Start by creating a simple and concise survey that asks customers to rate their satisfaction with a specific interaction or experience. Common CSAT survey questions include:

"How satisfied are you with our product/service?"

"On a scale of 1 to 5 (or 1 to 7), how would you rate your experience with us?"

"Did our service meet your expectations?"

Ensure that you use a clear and easy-to-understand scale for customers to provide their ratings.

Step 2: Collect Survey Responses

Distribute your CSAT survey to your target audience. This can be done through various channels, such as email, natively embedded on your website, through mobile apps, or even in person if you have a physical store. Make it as convenient as possible for customers to provide feedback. Tools like Qualtrics, SurveyMonkey, or Velaris’ built-in survey feature can help with this.

Step 3: Calculate CSAT Scores

Once you've collected enough survey responses, it's time to calculate your CSAT score. The formula for calculating CSAT is:

CSAT Score (%) = (Number of Positive Responses / Total Number of Responses) x 100

In this formula:

"Number of Positive Responses" refers to the total number of responses that fall into the highest satisfaction ratings. For example, if you're using a 5-point scale, ratings of 4 or 5 would typically be considered positive responses.

"Total Number of Responses" is the total number of survey responses you received.

Step 4: Interpret Your CSAT Score

After calculating your CSAT score, you'll have a percentage that represents the overall satisfaction level of your customers. Here's how to interpret it:

Score Meaning
100% Every respondent gave you the highest possible satisfaction rating. This is an excellent result but can be challenging to maintain consistently.
>70% This is generally considered good and indicates a high level of customer satisfaction.
50% - 70% Average. There is room for improvement.

Your CSAT score is a starting point for understanding customer satisfaction, but it's essential to dive deeper into the survey responses. Analyze the feedback and look for common themes or areas where customers express dissatisfaction. Use this information to identify specific improvements or changes needed in your products or services.

Remember that CSAT is not a one-time calculation. It should be an ongoing process, with regular surveys and analysis to track changes in customer satisfaction over time. Continuously monitoring CSAT scores and making necessary improvements will help you maintain a high level of customer satisfaction and drive business success. 

How to Improve Your CSAT

  • Listen to Your Customers: The first step in improving CSAT is to listen actively to your customers. Encourage feedback through surveys, emails, or direct conversations. Pay attention to both positive and negative feedback, as it can provide valuable insights into areas that need improvement.
  • Set Clear Expectations: Ensure that your customers know what to expect when they engage with your business. Transparency about pricing, delivery times, and product features can prevent disappointment and lead to higher satisfaction.
  • Fix Issues Promptly: When issues or complaints arise, address them promptly and effectively. Show your customers that you care about their concerns and are committed to resolving them.
  • Personalize the Experience: Tailor your interactions with customers based on their preferences and history with your business. Personalization can make customers feel valued and appreciated.

Why Does CSAT Matter?

  • Customer Loyalty: Happy customers are more likely to become repeat buyers and loyal advocates for your brand. High CSAT scores can lead to long-term customer relationships, which are more valuable than one-time sales.
  • Business Growth: Satisfied customers are more likely to refer friends and family to your business. Word-of-mouth marketing is a powerful tool, and CSAT plays a significant role in generating positive recommendations.
  • Reduced Churn: When customers are satisfied, they are less likely to switch to competitors. High CSAT scores can help reduce customer churn, which is essential for the stability and growth of your business.
  • Improved Reputation: Positive CSAT scores can enhance your brand's reputation in the market. Happy customers are more likely to leave positive reviews and testimonials, boosting your online presence.

Key Takeaways:

  • CSAT measures customer satisfaction with products or services through surveys.
  • It's expressed as a percentage, with higher scores indicating higher satisfaction.
  • Calculating CSAT involves a simple formula: (Positive Responses / Total Responses) x 100.
  • High CSAT scores lead to customer loyalty, business growth, and a better reputation.
  • Strategies for improving CSAT include active listening, clear expectations, and employee training.
  • Regularly monitor CSAT and act on feedback to maintain high satisfaction levels.

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