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What is CSAT and How to Measure it?

Customer satisfaction is the most important metric for any business. It’s a measure of how satisfied customers are with their experience with your company and products. It’s important because it helps businesses to identify what customers want and how well they’re delivering on those expectations. It also allows businesses to uncover areas that need improvement.

The acronym CSAT stands for Customer Satisfaction Score and it's been around for over 20 years. It's been used by various industries including healthcare, retail, and hospitality. With such a rich history, let’s take a look at why it’s important to measure and how to actually calculate the score

The importance of measuring customer satisfaction

Measuring customer satisfaction is an important part of the marketing process. It helps marketers understand how their customers feel about their products and services, and identify areas where the company needs to improve in order to better serve their customers. For example, if a company's product has a defect that makes it difficult for a customer to use it, and the customer does not know about this defect, then the company will not be able to fix this problem until they find out about it from their customers through feedback or social media.

How to measure CSAT

The Customer Satisfaction Score (CSAT) is the most common way of measuring customer satisfaction. The simplest way to measure CSAT is using surveys. Surveys can be conducted in person, over the phone, by email, or on social media platforms like Facebook, Twitter, LinkedIn or Instagram.. The survey should ask customers questions about their specific experience with the company.

A CSAT score is calculated by dividing the number of customers who would recommend the company from the total number of customers surveyed. Then multiply that by 100. The result is the percentage of customers who are satisfied and dividing it by the total number of customers. The higher the CSAT score, the more satisfied customers you have. The lower the CSAT score, the less satisfied customers you have.

This score can be used to determine how satisfied your customers are with your company and your services. While others use it as a way of measuring customer satisfaction with the service they have received. It is also possible to use CSAT as an indicator for how likely customers are to recommend your company or product to other people.

The ideal CSAT should be above 80% as this indicates that customers are generally satisfied. Once findings are compiled, it’s important to share any insights with other departments in a timely fashion to make improvements.

Key takeaways

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