How to calculate CSAT
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Customer satisfaction (CSAT) is an essential metric for businesses to gauge the overall happiness and satisfaction of their customers. In this article, we will break down how to calculate CSAT, why it’s important, and steps to improve customer satisfaction.
1. What is CSAT?
CSAT (Customer Satisfaction) is a measure that helps businesses understand how satisfied their customers are with their products or services. A simple numerical score generally represents it, with higher numbers indicating a higher level of satisfaction.
2. How to Calculate CSAT
To calculate CSAT, follow these steps:
Step 1: Collect feedback
– Send out customer surveys as soon as possible after a customer interaction. You can use various survey platforms or even implement in-app feedback mechanisms.
Step 2: Create a universally applicable rating scale
– Develop a rating scale that resonates with your customer base – common scales include:
* Scale of 1-5 (least to most satisfied)
* Scale of 0-10 (least to most satisfied)
* Emoji faces or sentiment ratings like “Very dissatisfied,” “neutral,” and “very satisfied”
Step 3: Calibrate responses
– For each customer response, assign a value corresponding to their satisfaction rating. For example (using the 1-5 scale):
* Very Dissatisfied = 1
* Dissatisfied = 2
* Neutral =3
* Satisfied = 4
* Very Satisfied = 5
Step 4: Sum the values and calculate the average
– Add up all the values from the responses you received.
– Divide the sum by the total number of respondents.
Step 5: Convert the average into a percentage
Multiply the average satisfaction rating by the maximum score on your scale’s percentage value (e.g.,20% for each point on a 1-5 scale) to obtain your overall CSAT score.
3. Importance of CSAT
CSAT should not be the only metric for evaluating customer satisfaction, but it is an invaluable tool in your arsenal. Keeping an eye on this metric can help identify problem areas or highlight products and services that are resonating well with your customers.
4. Improving CSAT
Increasing your customer satisfaction score can be achieved by:
– Regularly reviewing and acting on customer feedback
– Ensuring timely resolution of concerns or complaints
– Providing excellent customer support
– Continually improving your products or services based on customer needs and expectations
In conclusion, calculating CSAT is relatively straightforward, and tracking this metric can provide exceptional insights into enhancing customer experience. By continually monitoring and working towards improving this score, businesses can develop long-lasting relationships with satisfied customers, leading to repeat business and positive word-of-mouth marketing.