Definition
Customer Satisfaction (CSAT) is a key performance metric used to measure how satisfied customers are with a specific product, service, or interaction. It is typically captured through short surveys sent immediately after a customer interaction. Responses are often collected on a numerical scale (e.g., 1–5 or 1–10), with higher scores indicating greater satisfaction.
Why It Matters
Customer Satisfaction (CSAT) helps businesses understand how customers feel about specific experiences, enabling them to identify service gaps, improve performance, and reduce churn. High CSAT scores are usually linked to stronger customer loyalty, higher retention rates, and more positive word-of-mouth referrals. Tracking CSAT allows teams to course-correct quickly and invest in what drives customer happiness.
Real-Life Use Case
A telecom provider sends a Customer Satisfaction (CSAT) survey after each resolved support ticket asking, “How satisfied are you with the support you received?” The company analyzes the scores weekly to reward top-performing agents, pinpoint areas for training, and make data-driven changes to its customer service process.
FAQs
CSAT measures satisfaction with a specific interaction or service, while Net Promoter Score (NPS) reflects a customer’s overall loyalty to the brand.
A CSAT score above 80% is generally considered strong. However, expectations can vary by industry.
Ideally, right after a customer interaction such as completing a support request, a purchase, or a product delivery, to get the most accurate feedback.