Definition: What is the Customer Satisfaction Score?
The Customer Satisfaction Score (CSAT for short) is a key figure for customer satisfaction. A survey is used to determine the customer's satisfaction with a product, service, or interaction with customer support determined. The CSAT score then expresses customer satisfaction as a percentage, with a higher percentage corresponding to higher customer satisfaction. By determining the CSAT, the company is able to identify areas for improvement and the Optimise customer experience.
How is the Customer Satisfaction Score determined?
Companies typically use surveys or feedback mechanisms to capture their customers' opinions and experiences. Let's say a company runs an online shop and wants to measure customer satisfaction when processing orders. The company could introduce a feedback mechanism by sending customers an automated email with a survey after every order. The survey could include questions about order processing, delivery speed, product quality, and customer service, for example. A scale of 1 to 5 or 1 to 10 could be used, with specific meanings assigned to the numbers. For example, on a scale of 1 to 5, it would look as follows:
The CSAT value is then calculated using the following formula:
The following applies: the higher the percentage, the higher the customer satisfaction. In addition, the more customers take part in the survey, the more valid the result is. Nowadays, thanks to advanced software solutions, this is usually done smoothly and easily. For example, after a specific user interaction, a pop-up window can automatically appear within an app asking for feedback, or when a company has a chatbot , he usually asks immediately after the dialogue has ended whether he was able to help the customer.
CSAT versus NPS: How are they different?
It is important to note that the CSAT score alone is not enough to provide a complete picture of customer satisfaction. It may therefore be useful to combine CSAT with other metrics, such as the Net Promoter Score (NPS), to get a more comprehensive understanding of the customer perspective.
The Customer Satisfaction Score (CSAT) provides a snapshot of customer satisfaction and therefore refers to a specific interaction. Typical questions include:
- How well did our customer support resolve your issue?
- How satisfied are you with the quality of our product?
- How easy was it to navigate our website?
Whereas the Net Promoter Score (NPS) Determines the level of customer loyalty to a company by asking about their intended actions. Common questions include:
- What is the probability that you will use our services again in the future?
- Would you recommend us to a friend or colleague?
- How likely is it that you will mention us positively on social media or other online platforms?
The main difference between the two metrics is therefore the focus and goal of the survey as part of the customer relationship management. Whereas the Net Promoter Score (NPS) reflects a customer's loyalty and long-term commitment to a company, the Customer Satisfaction Score (CSAT) measures current customer satisfaction, which relates to a specific interaction, product, or service from a company.
Advantages and disadvantages of the customer satisfaction score
The Customer Satisfaction Score (CSAT) has both advantages and disadvantages, which are listed below:
Benefits of CSAT:
- Easy and intuitive measurement: The CSAT is usually easy to understand and easy to answer, which results in a higher willingness of customers to participate in the surveys
- High response rates: Because of their simplicity and brevity, CSAT surveys often achieve high response rates. Customers are more willing to share their opinion when time is low.
- Current mood recording: The CSAT enables rapid and up-to-date recording of customer satisfaction.
- Quick response options: By recording CSAT in real time, companies can react promptly to feedback and take targeted improvement measures. This helps improve the customer experience helps and strengthens customer loyalty.
- Specific improvement measures: Since the CSAT is aimed at specific interactions, products, or services, companies can derive targeted improvement measures. The results provide information on which areas need to be optimized to increase customer satisfaction.
Disadvantages of CSAT:
- Limited perspective: The CSAT focuses primarily on current customer satisfaction and does not provide comprehensive insight into the overall experience or the long-term customer loyalty. Other important aspects, such as brand perception or customer behavior, are not taken into account.
- Subjective reviews: CSAT ratings are based on the subjective perception of customers and can be influenced by individual preferences and moods. This can lead to distortions and discrepancies in the results.
- Superficial assessment: Because the survey is based on a limited number of questions, the CSAT only provides a superficial rating of customer satisfaction. There may be a lack of detailed information or background information to fully understand the causes behind the reviews.
- Limited significance: The CSAT refers to a specific interaction or experience without considering the context or the entirety of the customer journey.
Determine and increase customer satisfaction using an AI chatbot
As mentioned above, are chatbots helpful tools for determining the Customer Satisfaction Score (CSAT). You provide a channel for your customers to express their opinions — both positively and negatively.
By using chatbots, you are always available to your customers and can respond to ad hoc inquiries, suggestions and grievances react. Positive feedback from your customers ensures that your product developments and your customer service Go in the right direction. Happy customers can also provide valuable ideas for improving your products and services, which helps you achieve a truly customer-oriented company build up. At the same time, a chatbot provides customers with a platform to address their negative opinions and frustrations directly to you, instead of reaching out to online communities, for example. In addition, a chatbot can automatically ask for feedback after every completed conversation to find out whether the user has been helped. This feature allows you to customer experience to continuously improve and respond to the needs of your customers.
Every conversation and feedback can be viewed and analysed in the backend. The detailed analysis of a conversation provides a company with information about issues with the service, products, or services. It is also possible to filter directly for positive or negative reviews.
Because the chatbot is in use around the clock, the feedback loop never stops and companies automatically receive information about possible problems and potential for improvement. Through continuous feedback on service, products or services, the company can respond quickly to customer concerns, customer requests can be implemented and customer satisfaction can be increased.
Excerpt from practice
Velux, Fressnapf and DER SPIEGEL are companies that each offer different products or services to their customers. Despite these differences, they have at least one thing in common: By using an AI chatbot, all three companies achieve a CSAT score of 75%, are able to improve their customer service and achieve efficiency gains at the same time.
The fact that all three companies achieve a CSAT score of 75% based on user reviews in chat shows that AI chatbots can be used in a wide variety of industries and business areas and have a positive impact on customer satisfaction.
By using AI chatbots, companies can not only improve their CSAT score, but also ensure the scalability of their customer service, answer recurring questions, provide high-quality and quick answers, and gain valuable insights about customer behavior.
Conclusion: CSAT as a valuable tool for measuring customer satisfaction
By determining the customer satisfaction score, companies can gain valuable insights and take targeted measures to improve the customer experience. Furthermore, the CSAT survey enables companies to identify specific areas of improvement and establish long-term customer relationships. However, it is important to note that CSAT alone is not enough to provide a comprehensive picture of customer satisfaction. It can therefore be useful to combine the CSAT with other key figures such as the Net Promoter Score (NPS) to get a holistic understanding of the customer perspective. Finally, AI chatbots can help companies identify and increase CSAT. Chatbots offer customers the opportunity to continuously express their feedback.
Were you interested in the excerpt from practice on AI chatbots? And would you like to find out more about the Velux, DER SPIEGEL and Fressnapf use cases? Then you've come to the right place!
Velux's AI chatbot enables the online sales organization to reduce live chat volumes and serve customers in various markets and languages. To access the free case study, click here:
THE MIRROR permanently reduces the workload of its service team and increases subscription revenue with the help of an AI chatbot. More about that? Here Go to the free on-demand webinar:
Auch Fressnapf automates the majority of customer interactions and only a small percentage of 0.3% of conversations need to be handed over to a human. Here Click here for the free case study:
