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Customer Satisfaction Score (CSAT)

What is customer satisfaction score (CSAT)?

Customer satisfaction score (CSAT) is a metric used to measure customer satisfaction with a product or service. It is typically measured on a scale of 1-5, with 5 being the highest level of satisfaction. CSAT is often used to gauge customer loyalty and to identify areas of improvement for a company.

Why is CSAT important?

CSAT is important because it provides businesses with valuable feedback on how their customers feel about their products and services. It helps businesses identify areas of improvement and measure customer loyalty. CSAT also helps businesses understand customer needs and preferences, which can be used to develop better products and services. Additionally, CSAT can be used to measure customer service performance and identify areas where customer service can be improved. Finally, CSAT can be used to measure customer loyalty and identify potential defectors. By regularly tracking CSAT, businesses can proactively address any issues or concerns that their customers have and work to improve the overall customer experience. This can lead to increased customer satisfaction, loyalty, and retention, as well as improved business performance.

How can I use CSAT?

Here are some tips for effectively using CSAT:

  1. Regularly collect CSAT data: Regularly collect CSAT data from your customers through surveys or other means to get a clear understanding of how they feel about your products and services.
  2. Use CSAT data to identify areas of improvement: Analyze the CSAT data you collect to identify areas where you can improve your products, services, or customer experience.
  3. Communicate with customers: Follow up with customers who provide low CSAT scores to understand their concerns and see how you can address them.
  4. Use CSAT data to measure performance: Use CSAT data to measure the performance of your customer service team and identify areas where they can improve.
  5. Share CSAT data with your team: Share CSAT data with your team so they can understand how customers are feeling and what they can do to improve the customer experience.
  6. Use CSAT data to identify potential defectors: Use CSAT data to identify customers who may be at risk of leaving and take proactive steps to address any concerns they have and improve their experience.
  7. Use CSAT data to drive continuous improvement: Use CSAT data to drive continuous improvement in your products, services, and customer experience. Regularly review and analyze your CSAT data to identify trends and areas for improvement.

Brief history of CSAT

The concept of customer satisfaction score (CSAT) has been around since the early 1990s. It was first developed by the American Customer Satisfaction Index (ACSI) as a way to measure customer satisfaction with products and services. The ACSI developed a survey that asked customers to rate their satisfaction with a product or service on a scale of 0 to 100. This survey was then used to calculate a CSAT score for each product or service. Over the years, the concept of CSAT has been adopted by businesses of all sizes and industries as a way to measure and improve customer satisfaction. It is often used in conjunction with other customer satisfaction metrics, such as Net Promoter Score (NPS) and Customer Effort Score (CES), to get a more comprehensive view of the customer experience. CSAT is an important metric for businesses because it helps them understand how their customers feel about their products and services and identify areas for improvement. By regularly tracking CSAT, businesses can make informed decisions about how to improve the customer experience and drive business growth.

Related Terms

Telephone Consumer Protection Act (TCPA)

Terms & Conditions

User Experience (UX)

Customer Testimonial

Customer Relationship Management (CRM)

Customer Advocacy