Customer Success Managers (CSMs), Customer Success Heads, and Product Managers want to know a good CSAT score. The answer may be different for each company. However, there are some general guidelines that can help you set a baseline for what is considered a good score.

What is a CSAT score?

A CSAT score is a metric that measures customer satisfaction. It’s typically calculated by surveying customers after they’ve interacted with your company in some way, such as using your product or speaking to customer service. The goal is to get a sense of how satisfied the customer is with their experience.

The survey will ask customers to rate their satisfaction on a scale of 1 to 10, with 10 being the highest possible score. Sometimes it’s a smiley rating scale instead of a numbered scale.

The average score is then calculated to give you your CSAT score. You can also calculate your score by asking customers how likely they would be to recommend your product or service to a friend or colleague on a scale of 1 to 10. This metric is known as the Net Promoter Score® (NPS).

What’s a good CSAT score?

There’s no magic number that guarantees customer satisfaction. However, industry experts say a good CSAT score is typically above 80%. Scores below 60% generally cause for concern and indicate that something might be wrong with your product or service.

It’s important to keep in mind that your CSAT score is just one metric among many. Don’t obsess over small changes in your score from month to month. Instead, use it as one data point among many to get a holistic view of your customers’ experiences.

A good CSAT score can depend on many factors. However, here are some general benchmarks you can use as guidelines:

If your industry average is below 80%, try to increase customer satisfaction levels until you reach this target.
If you are significantly above or below your industry average, consider why this may be the case.
A 5% increase in customer satisfaction can lead to a 95% reduction in churn rate.

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How to calculate a CSAT score?

To calculate a CSAT score, simply ask your customers how satisfied they are with your product on a scale from 0-10 and then average the results. It’s that easy!
However, where things get complicated is when you want to start segmenting your data to see how different groups of customers feel about your product.
Maybe you want to break down responses by age group or by gender. Maybe you want to see how first-time buyers feel compared to long-time customers.
Segmenting data can be helpful in understanding which areas need improvement.

For example, let’s say you have a fashion e-commerce site and you want to break down your CSAT responses by age group. You might find that older customers are much more satisfied with your site than younger customers. This could be because the older demographic is less tech-savvy and appreciates the simplicity of your site while younger customers find it too basic. Or it could be because you have more products targeted towards an older audience. In any case, this information can be used to improve the website for all users.

The Customer Satisfaction (CSAT) score is calculated using the following formula:

Benefits of Measuring Customer Satisfaction

1. Happy Customers, Happy Business: It provides insights into customer contentment. Through this, you can easily understand which aspects of your product are appreciated by the customers.

2. Loyalty and Retention: Satisfied customers tend to stay. A high CSAT score indicates strong customer relationships, which in turn, promotes retention.

3. Positive Word-of-mouth: If you need a brand advocate, a happy customer is the best option. Having a positive satisfaction score attracts new customers and boosts and reputation.

4. Service Improvement Focus: Identifying areas where customers are dissatisfied (through low CSAT scores) enables businesses to pinpoint weaknesses. This data-driven approach guides improvements, enhancing overall customer experience.

5. Competitive Advantage: A high CSAT score sets a business apart from competitors. This instills confidence in potential customers and positions the company as a preferred choice in the market.

Wrapping up

A good CSAT score can help you track customer satisfaction and identify areas where your product or service needs improvement. While there’s no perfect number, most experts agree that a good CSAT score is above 80%. Keep in mind that your CSAT score should be just one metric among many that you use to track customer satisfaction.

Use this blog post as a guide to help you understand what factors influence customer satisfaction levels and what qualifies as a good CSAT score. By identifying which areas need improvement, you can start making changes that will lead to increased customer satisfaction and retention rates. Thanks for reading!

What is a Good CSAT Score?