What is Customer Satisfaction Score (CSAT)?

If you're an ecommerce business owner, you need to know how to measure customer satisfaction. Customer satisfaction score (CSAT) is one of the most popular metrics used by ecommerce companies to measure how happy their customers are. CSAT measures customer satisfaction after specific interactions or experiences with your business.

Customer Satisfaction Score Calculation

To calculate your CSAT score, ask customers to rate their level of satisfaction with a specific experience using a scale. For example, a scale of 1 to 5, with 5 being extremely satisfied. You can then calculate your CSAT score as the percentage of customers who responded with a rating of 4 or 5.

What is a Good Customer Satisfaction Score?

A good CSAT score varies by industry, but typically a score of 80% or higher is considered excellent. A score between 70%-80% is good and anything below 70% may indicate that your business needs to improve customer satisfaction.

CSAT Score By Industry

Some industries have higher customer satisfaction benchmarks than others. For example, the automotive industry typically has a higher average CSAT score than the telecom industry. To get a better idea of what a good CSAT score is for your industry, do some research on industry benchmarks.

When Should You Use Customer Satisfaction Score?

CSAT is an effective metric to use at specific points in the customer lifecycle:

1. After Customer Lifecycle Moments

After specific interactions with your business, such as completing a purchase or resolving a complaint, ask customers to rate their satisfaction with that experience.

2. Prior to Renewal

Before customers renew their subscription or contract with your business, ask for their feedback on their overall experience to determine if you need to improve something before they renew.

3. After Customer Support or Education Interactions

After a customer support interaction or education experience, ask for feedback to improve future interactions and training.

Customer Satisfaction Score Pros & Cons

Like any metric, there are pros and cons to using CSAT as a customer feedback measure:

CSAT Pros

• Easy to administer and understand
• Provides a simple score to track over time
• Allows you to focus on specific areas for improvement

CSAT Cons

• Can be affected by external factors such as price or shipping
• May not provide a full picture of overall customer satisfaction
• Can be costly and time-consuming to administer frequently

CSAT Example

Let's say you run an online clothing store and want to measure customer satisfaction with your shipping process. You send an email to customers who recently made a purchase asking them to rate their satisfaction with the shipping process on a 1-5 scale. Out of 100 survey responses, 72 customers rated their satisfaction a 4 or 5, giving you a CSAT score of 72%.

Your Customer Satisfaction Score Leads to Success

By measuring your customer satisfaction score, you can identify areas for improvement and increase customer loyalty and retention. Understanding your customers' satisfaction level can lead to more repeat business, positive reviews, and referrals. Use CSAT as a tool to ensure your customers are happy and your ecommerce business is successful.