Customer Satisfaction Score (CSAT) measures how happy customers are with your product or service. A higher CSAT score leads to better business growth and loyalty. To increase CSAT, you can resolve issues quickly, provide fast support, and offer rewards. This boosts customer happiness.
Most companies invest huge sums of money in customer experience (CX) tools. However, a recent study shows that customer satisfaction in the U.S. is at its lowest in nearly 20 years. Even consumer confidence is at its weakest in over 20 years.
But, are the Indian customers happy? Though business owners like you are trying hard to improve their experience, the challenge still remains. Usually, customer satisfaction is determined by calculating the customer satisfaction score (CSAT).
A recent study (conducted on the banking sector) showed that the average customer satisfaction score of Indian banks is a mere 69. This is much lower than its counterparts in Columbia (80), the US (76), and the UK (76).
Be aware that by maintaining a good CSAT score, you can increase your revenue and retain more clients. So, do you want to achieve business success?
In this article, let’s study what a CSAT is, its calculation, and importance. Also, we will check out some proven tips to increase customer satisfaction rating of your business and a good CSAT score you should try to achieve.
What is a Customer Satisfaction Score?
Customer Satisfaction Score is a way to measure how happy customers are with your business. By calculating it, you get to know if people like your products or services. The score is usually shown as a percentage:
- 100% means all customers are happy
- 0% means no one is satisfied
How is Customer Satisfaction Score Measured?
Most businesses collect customer feedback using a simple question like: “How satisfied are you with our product/ service?”. Next, customers choose a rating from 1 to 5:
| Rating | Interpretation |
| 1 | Very Unsatisfied (The worst experience) |
| 2 | Unsatisfied (Not happy) |
| 3 | Neutral (Neither happy nor unhappy) |
| 4 | Satisfied (Mostly happy) |
| 5 | Very Satisfied (Extremely happy) |
To collect feedback, you can let your customers answer questions through:
- Surveys (Online or paper forms)
- Website Pop-ups (Small survey windows that appear on websites)
- Mobile Apps (Short questions inside an app)
- SMS or Emails (Quick surveys sent through messages)
How to Calculate Customer Satisfaction Score?
Please note that customer satisfaction rate is calculated using only the “satisfied” (4) and “very satisfied” (5) responses. This is because research shows that only highly satisfied customers are likely to stay loyal to a business.
Now, to calculate customer satisfaction score, you have to use this formula:
CSAT = Number of Satisfied CustomersNumber of Survey Responses x 100
For more clarity, let’s study an example:
- Say 100 customers respond to your survey:
- 40 customers gave a “4” (Satisfied)
- 30 customers gave a “5” (Very Satisfied)
- So, your total satisfied customers are 70 (40 + 30)
- Your CSAT Score = 70100 x 100 = 70%
Why a High Customer Satisfaction Score is Important?
For businesses, keeping customers happy is the key to success. A recent study shows that about 75% of customers are willing to spend more on companies that provide a good customer experience.
A high customer satisfaction score shows that your customers are happy and satisfied. This helps in several ways:
1. Builds a Good Reputation
When customers are satisfied with your products or services, they leave good reviews and tell others about your business. Positive word-of-mouth brings in more customers without extra marketing costs.
2. Increases Revenue
Satisfied customers buy more and come back often. This means higher sales and more profits for your business.
3. Creates Trust in Your Brand
If customers are happy with your service, they trust your business. They believe in your:
- Quality
- Pricing
- Customer care
In most cases, trust keeps them coming back, which increases your revenue.
4. Gives You an Edge Over Competitors
A business that cares about customers will always stand out from competitors. If customers get better service from you, they won’t switch to another brand.
5. Lowers Marketing Costs
Acquiring new customers is expensive (advertising, promotions, etc.). But happy customers become brand evangelists and bring referrals. That’s free marketing for you!
6. Increases Customer Loyalty
Customers who feel valued will stay with your business longer. A high customer satisfaction score has a direct relationship with a high customer retention rate. This leads to steady business income and growth.
7. Attracts New Customers
When people see good reviews, referrals, and high satisfaction, they feel confident to try your business. This helps in getting new customers easily.
How to Improve Your Customer Satisfaction Score?
To maintain a high customer satisfaction score, you can follow these simple tips:
1. Ask for Feedback and Take Action
Always ask your customers for feedback. This will allow you to understand their pain points. To collect information, you can use:
- Surveys
- Reviews
- Direct conversations
If a customer has a complaint, try to resolve their problem quickly. By taking action on feedback, you show that you value your customers and want to improve. If customers feel heard and see changes based on their input, they are more likely to trust your business and continue using your products or services.
2. Offer Multiple Ways to Contact You
Customers should be able to reach you easily through different channels. Ideally, you should provide support via:
- Phone
- Social media
A website FAQ section can also help answer common questions. If customers can contact you conveniently, they will feel more confident in your business.
To gain omnichannel support, you can also associate with Atidiv. Our expert team transforms support interactions into loyalty-building moments. With us, you can achieve up to 60% cost savings compared to in-house teams.
3. Create a Simple Contact Form
A contact form on your website can make communication easy. It should include your:
- Phone number
- Social media links
Using contact forms, customers can describe their issue so you can prepare a helpful response. Let them know how long it will take for a reply (say 24 hours) so they don’t feel ignored.
4. Respond to Customers Quickly
Customers expect fast responses when they have a question or issue. Try to reply to messages, emails, and calls as soon as possible. Even if you can’t solve their issue immediately, acknowledge their request and let them know you are working on it.
5. Provide 24/7 Customer Support
Customers may need help at any time, not just during business hours. If possible, offer 24/7 support through:
- Chatbots
- An FAQ page on your website
Even if 24/7 support isn’t possible, try extending support hours or adding self-help resources.
6. Offer Rewards and Discounts
Loyal customers should feel appreciated. You can do so by offering discounts, cashback, or small gifts to repeat customers. For example,
- Give a 10% discount on the next purchase to encourage them to buy again.
- Offer reward referrals, that is, give a discount to customers who bring in new customers.
A good reward system builds strong customer relationships and increases their loyalty to your brand.
7. Be Honest and Transparent
Customers trust businesses that provide clear and honest information. Be upfront about:
- Pricing
- Return policies
- Product details
If there are delays or issues, inform customers instead of making false promises. Through transparency, you can set the right expectations and build long-term customer satisfaction.
What is a Good CSAT Score?
You have conducted a CSAT survey, and now you have the results. But how do you know if your score is good or bad? What should you aim for?
Please understand that no fixed number defines a “good” customer satisfaction score. Generally, a good CSAT falls between 75% and 85%.
However, different businesses and industries have different expectations, which affect the good CSAT score. For example:
- E-commerce businesses (like Flipkart or Amazon India) may have higher CSAT scores because they focus on fast delivery and easy returns.
- Local retail shops or service providers may have slightly lower scores because customer expectations vary based on personal service.
Thus, to find out if your customer satisfaction score is good, you should compare it with industry benchmarks. Below are a few ways through which you can benchmark your CSAT scores:
1. National Customer Satisfaction Surveys
These organisations conduct customer satisfaction studies across industries like banking, telecom, e-commerce, and retail:
- NCAER (National Council of Applied Economic Research)
- ASSOCHAM (Associated Chambers of Commerce and Industry of India)
- IMRB International (Indian Market Research Bureau)
2. Industry-Specific Ratings and Reports
Different industries have their own benchmarking reports:
- J.D. Power India (for automobile and banking sectors)
- RBI’s Annual Customer Satisfaction Survey (for banking services)
- TRAI (Telecom Regulatory Authority of India) (for telecom service quality and customer satisfaction)
3. In-House CSAT Tracking
As a business owner, you can even create your own benchmarks by tracking your past customer satisfaction score and comparing it with competitors.
Boost CSAT, Grow with Ease!
By achieving a high customer satisfaction score, you can stand out in competitive markets. You can improve your CSAT by:
- Actively gathering feedback
- Offering multiple support channels
- Providing 24/7 customer support
- Giving rewards and discounts
To find out the good CSAT score that applies to your business, refer to the various benchmarks.
Do you want to deliver exceptional customer experiences through data-driven insights and personalised support? At Atidiv, we optimise customer interactions and increase business growth. Our expert team maintains an impressive 98% Quality Assurance (QA) score and a 4.8 CSAT rating. Associate with Atidiv today and build lasting customer loyalty!
FAQs On Customer Satisfaction Score
1. Why is my CSAT score low despite good service?
Generally, businesses experience a low customer satisfaction score when their customers may have:
- High expectations
- Poor past experiences,
- Unresolved issues
To boost your CSAT, regularly collect feedback and address complaints quickly. By improving communication, you can build a loyal clientele.
2. How often should I measure the customer satisfaction score?
Ideally, you should measure CSAT:
- After key interactions (purchases, support calls)
- At the end of every quarter (to track trends)
Through frequent monitoring, you can easily spot gaps in customer experience and fill them quickly.
3. What’s a good CSAT score for my industry?
Please note that customer satisfaction score varies by industry. Generally, a score of more than 75% is considered ideal. However, since it varies based on industry type, you must compare it with:
- Competitors
- Industry reports
- Established benchmarks
4. How can I improve response rates for CSAT surveys?
You can:
- Keep surveys short
- Offer incentives
- Use multiple channels (email, SMS, app).
Also, you can start sending personalised messages as they increase engagement.
5. Can a high CSAT score increase revenue?
Yes! Most businesses with a high customer satisfaction score:
- Buy more
- Refer others
- Stay loyal
This reduces marketing costs and boosts your business profits.
