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Customer Satisfaction Score (CSAT)
Customer Satisfaction Score (CSAT)
Updated over a week ago

In today's customer-centric business environment, understanding and measuring customer satisfaction is paramount. One of the most direct and effective metrics for gauging this is the Customer Satisfaction Score (CSAT). This short article will dive into what CSAT is, explore its use cases, and detail how it is calculated, particularly within the context of an Iterate survey deployed across websites, mobile apps, or via email.

What is CSAT?

CSAT stands for Customer Satisfaction Score, a key performance indicator that measures the degree of customer satisfaction with a product, service, or experience. It is a straightforward metric, usually derived from a single question survey asking customers to rate their satisfaction with the business, product, or service on a scale. The scale typically ranges from "Very Unsatisfied" to "Very Satisfied", alternatively we allow you to use a star rating option, or completely customize the answer copy.

CSAT is pivotal for businesses aiming to understand their customers' perceptions and experiences. It provides immediate feedback on what they are doing well and identifies areas requiring improvement. By actively monitoring and acting on CSAT results, companies can drive customer loyalty, enhance product or service quality, and improve overall customer experience.

Why use CSAT?

The versatility of CSAT makes it applicable across numerous scenarios, including but not limited to:

  • Post-Transaction Surveys: Immediately after a purchase or interaction, asking customers to rate their satisfaction can provide insights into the buying experience and product expectations.

  • Service Experience: Following a customer support ticket, a CSAT survey can evaluate the effectiveness and responsiveness of the support team.

  • Product Feedback: To gather opinions on a new product or feature, CSAT can gauge initial satisfaction levels and suggest areas for enhancement.

  • Customer Journey Touchpoints: At various stages of the customer journey, CSAT can help identify friction points or highlight exceptional service areas.

Calculating CSAT

Iterate simplifies the process of collecting and analyzing CSAT data across various channels, be it your website, mobile app, or through email surveys. The calculation of the CSAT score is both straightforward and intuitive, making it easily understandable for businesses of any size or sector.

Here's how the CSAT score is calculated:

  1. Collect Responses: Utilize Iterate to ask your customers to rate their satisfaction level with your product, service, or experience. This can be done via any channel that best reaches your customer base—website, mobile app, or email.

  2. Calculate the Score: The CSAT score is calculated by taking the total number of satisfied customers (those selecting the top options, typically "Satisfied" or "Very Satisfied") and dividing it by the total number of responses received. Then, multiply the result by 100 to get a percentage.

This method ensures that the score reflects the percentage of your customers who are satisfied with their experience, providing a clear and concise measure of customer satisfaction.

Conclusion

CSAT is a crucial metric for any business focused on customer satisfaction and service excellence. It offers immediate feedback on customer perceptions and is instrumental in driving improvements across products and services. By leveraging Iterate, businesses can effortlessly deploy CSAT surveys across multiple channels, ensuring comprehensive coverage and insightful data collection. Understanding and acting upon CSAT scores can significantly impact customer loyalty and overall business success.

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