What is Customer Satisfaction Score (CSAT)? – Formula and Ways to Improve Customer Satisfaction Score [With Examples]

What is customer satisfaction score (CSAT)?

Customer satisfaction score or CSAT is a metric that measures the customer’s level of satisfaction with your product or service, generally through a customer satisfaction survey that asks: “How satisfied were you with [company]?”

How to calculate customer satisfaction score (CSAT)?

To calculate CSAT, you first need to collect responses from your customers for the ultimate question “How satisfied were you with [company]?” and respondents will rate you on a scale of 1-5.

For the calculation, we only take into consideration satisfied (who rated 4 & 5) responses.

Now, divide the ‘number of satisfied customers’ by the ‘total number of responses’ and multiply by 100.

Formula for calculating customer satisfaction score (CSAT)

Customer Satisfaction Score formula
Customer Satisfaction Score Formula

Real-life example of customer satisfaction score (CSAT)

You run a software company and rolled out a survey asking your customers the ultimate question “How satisfied were you with [company]?”.

You get a total of 200 responses. Out of those, 50 responded very satisfied (5 rating), 80 responded satisfied (4 rating) and the rest were between the scale of 0-3. So, your total number of satisfied customers will be 130 (50 + 80).

Therefore, your CSAT will be: 130/200 x 100 = 65%

What’s considered a good customer satisfaction score? (benchmark)

A customer satisfaction score (CSAT) of 65% - 80% is considered good across all industries. A score of 80% or more is considered to be gold for your company, although it varies by industry and area of the business. 

The breweries industry has the highest industry benchmark of 81% according to the American Customer Satisfaction Index, while the hotel industry has the lowest (73%).

The higher your CSAT score, the better.

Ways to improve your customer satisfaction score (CSAT)

  • Employ a customer feedback loop: A customer feedback loop is a system to (1) collect customer feedback, (2) analyze it, and (3) act on customer feedback. It is a surefire technique to ensure that you’re listening to your customers and providing them with the best experience.
  • Offer multichannel customer support: Calls and emails aren’t enough in this face pace world.  18% of customers who comment or complain on social media expect a response immediately, while 83% expect it to come the same day. You can implement live chat on your website, use social media automations e.g. DM automation Instagram, and increase your response time.
  • Provide great customer experience: 86% of buyers are willing to pay more for a great customer experience. Knowing what your customer wants and aligning your products/services encourages customer loyalty and satisfaction rate.

Also Read: Related Metrics

Subscribe to our newsletter

Occasionally, we send you a really good curation of profitable niche ideas, marketing advice, no-code, growth tactics, strategy tear-dows & some of the most interesting internet-hustle stories.

By clicking Subscribe you're confirming that you agree with our Terms and Conditions.
Thank You.
Your submission has been received.
Now please head over to your email inbox and confirm your subscription to start receiving the newsletter.
Something went wrong. Please try again.