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What is customer satisfaction?

Customer Satisfaction Definition: Customer Satisfaction (CSAT) is the measure of a customer’s delight or dismay during or after the use of an organization’s product or service. It can also refer to a customer service experience that took place when a customer interacted with your business, such as going to a diner and interacting with the wait staff. There is a comprehensive list of tools and tactics you can use to measure customer satisfaction. One of the easiest and most popular options to measure satisfaction is through a CSAT survey. A survey, often created from questionnaire templates, may be distributed to the relevant audience. Your customers answer the survey questions, giving you exclusive insights into their feelings of satisfaction or lack thereof with your organization. You can analyze the data for insights into improving customer experience (CX)). Survey data is often collected and measured right after a transaction or at a fixed interval. Metrics such as Net Promoter Score (NPS), Customer Effort Score (CES), or Customer Satisfaction Score (CSAT) are used to provide decision-makers with an easy-to-understand score based on the survey results.

How to improve customer satisfaction?

The answer seems quite simple, right? Build an excellent product or provide excellent service, and your customers will be satisfied. Well, it’s not just that and also not so simple. Let’s look at 7 ways to improve customer satisfaction.


What is a customer satisfaction score?

A customer satisfaction score helps measure consumer satisfaction by way of a one-question questionnaire. Customer satisfaction score surveys ask consumers to rate their product or service satisfaction. Consumers rate their experience on a scale that varies from “very unsatisfied” to “very satisfied.” Consumer satisfaction questions grants access to customers' mindsets. View our latest article on what is customer satisfaction score for more details.

Customer satisfaction surveys

Customer satisfaction surveys are easily the most effective tools to get feedback on the quality of your products and services. Using multiple-choice questions or matrix questions can be quite impactful in getting the desired results. Surveys can also be used to learn what customers think about you and your market reputation. This data can be put to work to learn how you can make improvements. A customer satisfaction survey can also be instrumental in developing new features or products. Most customers will tell you honestly what will and will not work concerning the current market trends.

What are the common types of customer satisfaction surveys?

What type of customer satisfaction survey to run depends entirely on the focus of your study. Are you trying to judge the quality of your service or how the customer feels? Or do you want more insights into why your product is doing well? As these questions are different, so are the surveys you need to conduct. Let’s look at some of the common types of Customer Satisfaction Surveys.

Importance of customer satisfaction and CSAT surveys

Now that we know what customer satisfaction surveys are and their types, let’s look at some benefits. Here are top 10 benefits of conducting customer satisfaction surveys.


Essential customer satisfaction survey questions

Asking the right questions in customer surveys is important to ensure you get the right and relevant feedback. If your questions are not focussed and targeted, you may receive data that may not help you a lot. You may lose out on important customer insights that could have helped you refine your customer experience initiatives, improving customer satisfaction and experience.

We wrote a separate article on this, highlighting the most important CSAT questions you should include in your consumer satisfaction surveys. Kindly have a look for more details on designing CSAT surveys that have a high response rate and that gather relevant consumer data.

What type of metrics measure customer satisfaction

Poor customer experience is one of the leading reasons why customers stop interacting with a brand. You can use CSAT survey tools to help you create, distribute, and analyze satisfaction surveys to improve the customer experience. Standard satisfaction scores include CSAT Score, Net Promoter Score (NPS), Voice of Customer (VOC), Customer Effort Score, Customer Churn, and the Likert Scale. Here are some of the commonly used CSAT survey tools to measure your customer satisfaction and experience metrics:

1. Net Promoter Score (NPS): Net Promoter Score (NPS) is the percentage of the customers that will recommend your company or business to their family, friends, or colleagues. It’s an important tool to measure customer satisfaction and experience metrics. NPS surveys come in handy in doing that. Your NPS can be determined by asking a simple Net Promoter Score question to your customers: On a scale from 0-10 (where 0 being lowest and 10 being highest), how likely are you to recommend us to your family or friends?


Your NPS can be calculated by subtracting the Detractors from the Promoters.


Why measure NPS?

There are several studies conducted that show NPS results have a significant impact on the success of a brand or an organization. Some might argue NPS is just a snapshot of a customer’s sentiments. However, these sentiments determine whether the customers will recommend your brand or not. This customer satisfaction and experience metric facilitate in-depth feedback. With the right platform, you can even convert your detractors into promoters by immediately addressing their concerns.

2. Customer Satisfaction Score (CSAT): Customer satisfaction is an essential tool that helps you understand if you have surpassed customer expectations of your product or services. Your CSAT score enables you to measure satisfaction and overall customer experience. Customer Satisfaction (CSAT) Score is measured by sending customers a survey asking them to rate their level of satisfaction with the interaction on a scale of Not satisfied at all to Very satisfied.


3. Customer Effort Score (CES): Customer Effort Score (CES) is a survey metric used to measure customer experience. CES surveys usually ask a single question to increase customer loyalty and decrease customer effort. Generally, the more effort required by a customer, the more their loyalty decreases. A business or organization constantly strives to make its customer effort “effortless.” Excellent customer experience directly results in reducing customer efforts and increasing customer satisfaction. For example, if you own a retail clothing shop and the customer must constantly walk around the store to find employees for assistance, an attentive shop employee anticipates the customer’s needs. The customer is more likely to return to the store where their needs were easily met.


4. Customer Churn: Customer churn is a phenomenon where customers stop purchasing products or services from a brand. Customer churn is also known as customer attrition. Customer churn rate or customer attrition rate is the mathematical calculation of the percentage of customers who are not likely to make another purchase from a business. It’s extremely important to keep the customer churn rate low for any business, as acquiring new customers costs more than retaining existing ones. Additionally, highly satisfied customers are great brand ambassadors. They help spread a positive word of mouth and recommend your brand or services to their family, friends, and colleagues. To calculate the customer churn rate, divide the number of customers you have lost by the total number of customers. You can segment your customers based on the frequency of their purchase to help estimate the churn rate.


This formula helps you calculate the customer churn rate. Every organization has its unique methods to garner feedback regarding customer satisfaction. These methods are broadly categorized into two surveys based on the organization's niche or target audience.

How should you measure customer satisfaction?

Measuring CSAT for different companies will be different, depending on their focus, size, product, or service. However, organizations can make use of similar strategies to measure and improve CSAT. Organizations can use these 7 key steps successfully to track and measure customer satisfaction . Our recent blog talks about this in much detail.

Customer satisfaction and service quality

Service quality reflects a customer’s perspective towards your products and services in comparison to their expectancy. It plays a large role in the satisfaction of your customers. Higher service quality directly leads to an increase in customer satisfaction. By offering customers great service quality upfront, you can save time and effort on creating ways to increase satisfaction. Thanks to new technology and increased global access to brands, it has become extremely critical to maintain a strong standard of customer satisfaction and service quality. This can be achieved by imparting the importance of service to the staff members who are dealing directly with customers and encouraging them to go above and beyond in their customer service efforts.