“What” is CSAT metrics? “Why” the CSAT metric is better?

Satisfaction is an essential metric for measuring and managing the Customer Experience(CX) over time. Satisfaction is used to provide a baseline measurement of performance, identify change, and understand key drivers to set and align priorities at an organizational level. It is also a good indicator of the effectiveness of a given service and provides companies with an immediate understanding of how customers feel about them.

One of the common question constructions to measure CSAT (Customer Satisfaction) is:

How satisfied are you with the recent service provided by <ABC Store>?

With customer providing a score of your invitation/survey for the experience on a scale of 0-10 (where 0 represents a very bad experience[Dissatisfied] and 10 being an outstanding experience[Extremely Satisfied]), you can quickly evaluate your business performance and monitor how your business may be improving over time and what are the areas where you need to work to make the customer’s experience better.

CSAT is key to the pandora’s box which has vast information which is essential for CX.

There is a sequence of activities that an organization can perform which would help them to improve CX which will ultimately lead to improve goodwill of the organization:

1. [Receiving CSAT Score Phase] We receive the CSAT score from customers.
2. [Getting to know your customer phase] We come to know potential customers who are satisfied as well as dissatisfied with the service provided.
3. [Customer Interaction phase] The organization will be contacting:

Dissatisfied customer via Email, SMS, Telephone or Face-To-Face means. This will help the organization capture additional information about completed survey. This piece of information will only be by pulled out for the records having the CSAT score <6.

Satisfied or Extremely Satisfied customer via Email, SMS, Telephone or Face-To-Face means. This will help the organization capture additional information about of their recent experience. This piece of information will only be by pulled out for the records having the CSAT score 7-8 or 9-10.

4. Once the organization understands the problem and issue the customer experienced, they can deal with it. Conduct meeting internally and try to get the root cause of the issue. Then come up with a solution so that no other customer in future will experience it again. Next thing comes in our mind is why are we doing this?

Why are we doing this?

• It will help to improve the service of the organization
• A dissatisfied customer is not good for business, why?

Leads to bad mouthing

Hampers the brand value

Effects and decreases the goodwill earned by the organization

Lead to reduction in # of customers stopping by their outlets or units.

Impacts the organization monetarily

ROI gets impacted too.

• Would any organization want to experience this? The answer will be BIG NO!! (that's where CSAT plays vital role and helps organization NOT to be on that burning spot)

5. So organization will work on the feedback and improve, will lead to a happy customer!!

The reason why CSAT standout to be a better metric calculation method is as follows:

1. The rating gives us a very genuine understanding of the how the company is performing. Now when we say performing, then we actually mean the performance of the company. So, if the customer is happy and he/she provides us

• Promoter(9-10) score then the customer is very happy and satisfied
• Passive(7-8) score then the customer is not so happy but not very unsatisfied customer with the service provided
• Detractor(0-6) score then, the customer is very unsatisfied customer

2. This gives the company/organization an opportunity!

• Opportunity to do what? The answer is an opportunity to interact with the customers. Having a friendly conversation with the customer always helps us better understand issue they have faced and details related to it. This is the opportunity an organization should never miss because this is an area of opportunity where they can do better to increase/improve customer experience.

Interact with customer

Get details of the issue he/she is facing

Understand more about the experience

3. CSAT response gives us clear visibility of the satisfaction level. This level may vary from business unit to unit or other comparison parameters

Bottom-line is, it allows you to understand/know your valuable customer experience, their satisfaction level, interact which lead to an understanding of the service provided by your organization.

Hope this was helpful!

Cheers!