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CSAT
A Guide to Measuring
Customer Happiness
The most successful businesses are data-driven. They are the
companies where leadership bases their decisions on preset
metrics that they regularly track. Goals are determined and
adjustments are made with numbers serving as rationale.
All this is great, but how does that play with customer service?
When it comes to the touchy-feely aspects of a business,
where do numbers factor in?
Many companies use the Net Promoter Score® (NPS), while
others prefer to measure the CSAT score, or customer
satisfaction score.
What is NPS?
2. Why?
Respondents answer the first question with a number from 0 to 10, with
0 being extremely unlikely and 10 being extremely likely. Customers are
then given the chance to explain their first choice in an optional second
question that yields qualitative results.
Net Promoter Score® (NPS)
NPS scores are divided into three buckets. 0-6 are considered
Detractors: Customers who are unhappy and can damage a brand.
7-8 are Passives: Satisfied but unenthusiastic customers.
9-10 are Promoters: Loyal enthusiasts who will fuel growth.
What is CSAT?
The exact wording of the CSAT question and the corresponding rating
system used in surveys varies from organization to organization. This
means that there is no industry-standard way to measure CSAT. A few
commonly used questions include:
For CSAT questions that don’t simply require a binary answer, it’s up
your business to decide which answers count as “satisfied” and which do
not. For example, you may decide that, on a scale of 1-10, anything
above a ‘6’ rating counts will be deemed as satisfied.
A CSAT score, then, does not have one unified measurement. The
numerical score itself will depend on exactly what question is being
asked. That being said, one could perform this general calculation to
determine the proportion of satisfied customers:
Since CSAT scores vary widely based on the type of CSAT question
asked, there is no one definition of what a good CSAT score is. A general
rule of thumb is to try to get your percentage of satisfied customers as
close as possible to 100%. It may also be useful to benchmark your
scores against other companies in your industry.
The second major difference is in what the two values measure. NPS is a
measurement of customer loyalty. In contrast, CSAT scores are strictly a
measurement of customer happiness. This means that while CSAT scores
can help predict churn, they cannot predict customer retention. This is
because low satisfaction generally leads to attrition, while high
satisfaction does not necessarily guarantee that a customer will return
for repeat business.
There are seven steps to improving the customer experience in your call
center using NPS:
2. Be consistent
Ask the exact same CSAT survey question every time and make sure that
the survey is sent out at the correct time, whether it be every quarter or
after every interaction.
Measuring NPS and CSAT scores can go a long way in determining how your
business is performing in the eyes of your customers. These metrics are
simple, yet adaptable to a variety of circumstances and can be used in
conjunction with other sentiment measurements.
Once you’ve determined your NPS and CSAT score,
what can you do next?