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What is a Customer Satisfaction and how does it work?

Customer Satisfaction Score (CSAT) is a customer metric used to measure how your product, service, and overall experience either fall short, meet, or exceed customer expectations. The CSAT survey most commonly asks a variation of the question, “‘How satisfied [are/were] you with the [goods/service] you received?” CSAT survey questions need to be brief, to the point and should assure the customer that the company is genuinely concerned. Respondents answer using a 5-point scale, ranging from very unsatisfied to very satisfied.

Some average out their results to get a Composite CSAT, but most express them as a percentage scale — 100% being total customer satisfaction, and 0% being total dissatisfaction. The method for calculating CSAT is somewhat similar to the NPS® method, wherein only the highest values — in this case, (4) or ‘satisfied’ and (5) or ‘very satisfied’ — are included in the calculation. These can most accurately and reliably predict customer retention.

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How CSAT helps customer success teams like yours

CSAT matters because companies that actively prioritize customer satisfaction grow and increase revenue. With 86% of consumers willing to pay more if that means they’ll get a better experience, it’s evident that this has become a key differentiator today — not even price or the product itself. When you maximize satisfaction rates across the customer journey, you can boost your revenue by up to 15% and lower the cost of serving customers by as much as 20%.

If you don’t place a premium on customer satisfaction, you won’t be aware of problems or complaints until it’s too late. FeedbackLabs’ CSAT surveys help you assure your customers that you care about their experience and offer them an open line of communication.

They also help prevent negative word-of-mouth and keep customers happy by giving you the information and tools you need to address dissatisfaction before it evolves into a problem. FeedbackLabs makes it effortless to respond to your CSAT surveys consistently, allowing you to close the loop on a customer interaction while identifying trouble spots and recurring complaints.

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