Consumer power is at an all-time high in the age of social media, viral reviews, and user-generated content. It’s time for businesses to use consumer feedback to improve customer experience, inspire brand loyalty, and boost profitability. Customer satisfaction score (CSAT), provides decision-makers with quantitative and qualitative actionable data at critical contact points.
Customer satisfaction score can be used to assess customer happiness at the time of purchase, during onboarding, or following a support interaction.
How Do You Calculate Customer Satisfaction?
Satisfaction ratings are key performance indicators that assess how satisfied a consumer is with a company’s products or services. You may use customer surveys to learn how satisfied your customers are with your brand at any step in their journey.
- A simple inquiry is used to determine a client’s happiness with a service, product, transaction, or contact. The consumer can select from a number of alternatives, including:
- A numerical value ranging from one to three, one to five, or one to ten.
- Extremely dissatisfied, dissatisfied, neutral, satisfied, and very satisfied are examples of verbal indications.
- Smiley faces and stars are examples of international symbols.
- The scoring mechanism is the same whether you use numbers, words, or symbols.
What is a Customer Satisfaction Score and How Do You Calculate It?
Scores on the CSAT are simple to compute. Simply sum up all of the affirmative replies, divide by the total number of responses, then multiply by one hundred. The proportion of customers that are happy with their brand experience is shown in the final number.
The majority of people believe that a four out of five or five out of five star rating is a good result. If 50 clients give your organisation a five-star review and 30 give it a four-star rating, the total number of favourable comments is 80.
If 100 persons participated in the survey, divide the total number of positive replies by the total number of clients questioned to get 0.8. Multiply this figure by 100 to get the final percentage of happy vs. dissatisfied clients. In this example, it’s 80 percent, which is a fantastic result.
Advantages of Measuring Customer Satisfaction
Despite its simplicity, many firms utilise the score as a key performance indicator (KPI) to gauge client success. In fact, the CMSWire State of Digital Customer Experience 2021 poll found that it is the second-most often utilised metric of digital CX progress. Bookings, renewals, revenue, and/or growth were the only measures that businesses deemed more beneficial. The advantages of assessing satisfaction do not stop there. The following are the primary benefits of using customer surveys.