What is Customer Satisfaction Score (CSAT)?
A metric that measures how satisfied customers are with a product, service, or interaction, typically on a numerical scale.
Detailed Explanation
Customer Satisfaction Score is a direct measure of customer sentiment, usually collected through post-interaction surveys asking customers to rate their satisfaction on a scale (commonly 1-5 or 1-10). The CSAT is calculated as the percentage of customers who rate their experience positively (typically 4 or 5 on a 5-point scale). CSAT can be measured at different touchpoints — after a purchase, following a support interaction, upon project completion, or at regular intervals. It provides immediate, actionable feedback that can be linked to specific processes, teams, or individuals. When tracked over time, CSAT trends reveal whether improvements are having the desired impact on customer experience.
Why It Matters
Customer satisfaction directly predicts retention, referrals, and revenue growth. A 5% increase in customer retention can increase profits by 25-95%. CSAT gives you a regular pulse check on how customers feel about your business, enabling early intervention when satisfaction dips.
Example
A home maintenance company sends a two-question CSAT survey via SMS after every job: "How satisfied were you with the service?" (1-5 scale) and "Would you recommend us?" They track CSAT by technician and by service type, identifying that their plumbing team consistently scores 4.8 while their electrical team averages 3.9. Targeted training for the electrical team closes the gap within two months.
Related Terms
A loyalty metric that measures the likelihood of customers recommending your business to others, based on a single-question survey.
A measurable value that demonstrates how effectively an organisation or individual is achieving key business objectives.
A formal commitment between a service provider and a client that defines the expected standard of service, including response times, availability, and quality metrics.
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