What is CSAT?

CSAT stands for Customer Satisfaction Score. It's a key performance indicator (KPI) used by businesses to measure how satisfied customers are with their products, services, or experiences.

Here's how CSAT typically works:

Measurement Method

Customers are asked to rate their satisfaction on a scale, commonly 1-5 or 1-10.

The question is usually something like:

CSAT Calculation

The formula is straightforward:

CSAT = (Number of Satisfied Customers ÷ Total Number of Survey Responses) × 100

For example:

• If you use a 5-point scale, customers rating 4 or 5 are considered "satisfied"
• If 80 out of 100 customers gave ratings of 4 or 5, your CSAT would be 80%
• Some companies only count the highest rating (5) as satisfied, while others include the top two ratings (4 and 5)

Scale Variations

• 5-point scale: Satisfied = 4-5 ratings
• 10-point scale: Satisfied = 7-10 ratings
• 3-point scale: Satisfied, Neutral, Dissatisfied

Key Characteristic

• Simple and direct - easy for customers to understand and complete
• Immediate feedback - often collected right after an interaction or purchase
• Specific focus - usually measures satisfaction with a particular touchpoint or experience
• Actionable data - helps identify areas needing improvement

Common Use Cases

• Post-purchase surveys
• After customer service interactions
• Following product delivery
• After using a website or app feature

Limitations

CSAT provides a snapshot of satisfaction at a specific moment but doesn't necessarily predict long-term customer loyalty or behavior. Many companies use it alongside other metrics like Net Promoter Score (NPS) and Customer Effort Score (CES) for a more complete picture of customer sentiment.

The score helps businesses track performance over time and benchmark against industry standards.