# 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.

## 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.

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