What is Customer Satisfaction (CSAT)?

Customer satisfaction (CSAT) is a measurement of how well a business is satisfying its customers with the products, services or interactions it provides. Usually expressed as a score derived from a simple customer satisfaction survey, CSAT measures satisfaction at a given point in time (for example, upon receipt of a product the customer ordered) and, as such, it does not provide a “big picture” view of concepts such as customer loyalty. But it is useful for pinpointing issues or achievements in specific steps along the customer journey.

CSAT information is typically gathered through customer surveys. However, unlike Net Promoter Scores® (NPS), a standard way to structure customer satisfaction surveys does not exist. A typical CSAT survey asks customers to rate their experiences through scaled questions, such as "On a 5-point scale, how satisfied are you with the [product, service, support] you received?" Flexibility exists with the scale that is used and the subject of the measurement. For example, a company could get very narrow with what they're measuring, such as "On a 5-point scale, how satisfied are you with how quickly your order was delivered?" An approach such as this could be used to identify best practices or isolate problem areas.

Customer satisfaction scores are typically expressed as a percentage of satisfied customers. On a 5-point scale, that usually means customers that responded with a 4 or 5 rating are regarded as “satisfied.” The CSAT percentage is calculated by dividing the number of satisfied customers by the total number of customers who responded to the survey, then multiplying that result by 100. The closer that number approaches 100%, the better.

Customer satisfaction in the contact center

Customer satisfaction is frequently measured following interactions with customer service. Software tools are available that automate the collection and analysis of customer satisfaction data. For example, customers can automatically be presented with a CSAT survey at the conclusion of a chat session with a service agent. Then, analytics tools can calculate the score at the agent level and make it available on the agent dashboard. Customer satisfaction scores are useful as barometers that indicate whether contact centers are satisfying customers. However, CSAT scores should be used with other measurements to get a holistic view of service performance.