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Customer satisfaction (CSAT) is a crucial measure of how well a company meets or exceeds customer expectations.
High satisfaction levels are a strong indicator of business success, as satisfied customers are more likely to return and recommend the brand to others. Focusing on customer satisfaction helps you build loyalty and drive long-term growth.
Monitoring your customer satisfaction score is the first step towards increasing or maintaining a good score.
This article explains how to calculate and improve your CSAT score and defines what is considered a good score.
CSAT is a customer experience (CX) metric that measures how customers feel about your business. CSAT surveys help you to build customer loyalty, increase retention rates and uphold a strong brand reputation.
CSAT scales, which are typically 1–5 or 1–10, reflect customer satisfaction with your products or services. This metric provides a clear overview of how customers perceive your business.
CSAT surveys often include a question, such as “Please rate your overall satisfaction with [company] from 1 to 5.” Customers select a number that represents their level of satisfaction.
Calculating your CSAT score based on the survey results involves a straightforward formula.
To calculate your CSAT score, you need to know the number of satisfied customers and the total number of responses. The customer satisfaction formula is as follows:
(Number of satisfied customers / Total number of responses) x 100 = % of satisfied customers
For example, if you received 75 satisfied responses out of 100 respondents, 75% of customers were satisfied.
Determining whether your CSAT score is good is more nuanced than it seems. Although typical ranges exist, the true measure comes from benchmarking your results against those of your industry peers.
A CSAT score that is considered ‘good’ generally falls between 70% and 85%. Here are typical ranges, excluding industry-specific data.
CSAT score ranges:
CSAT surveys typically use a 1–5, 1–7 or 1–10 scale, where 1 represents the worst score and 10 the best. Use these models to interpret your scores.
On a scale of 1 to 5:
1 - Very unsatisfied
2 - Unsatisfied
3 - Neutral
4 - Satisfied
5 - Very satisfied
On a scale of 1 to 7:
1 - Extremely unsatisfied
2 - Very unsatisfied
3 - Unsatisfied
4 - Neutral
5 - Satisfied
6 - Very satisfied
7 - Extremely satisfied
On a scale of 1 to 10:
1 - Extremely unsatisfied
2 - Very unsatisfied
3 - Unsatisfied
4 - Quite unsatisfied
5 - Neutral
6 - Quite satisfied
7 - Satisfied
8 - Very satisfied
9 - Extremely satisfied
10 - Perfectly satisfied
The ‘satisfied’ or ‘good’ scores are as follows:
It’s difficult to achieve a perfect score, but you can monitor customer satisfaction and make improvements based on customer feedback to turn detractors into promoters.
Abercrombie & Fitch improved its CSAT score by 40% by implementing a strategic initiative in 2017 which focused on personalising the in-store shopping experience. The company enhanced service quality by training associates to leverage customer data, such as purchase history and style preferences, thus boosting customer satisfaction and loyalty.
Costco achieved an impressive 85% CSAT score, surpassing the industry benchmark of 79%. The company’s success is attributed to its membership programme and focus on value-based, high-volume sales. Costco’s 92.6% membership renewal rate in the U.S. and Canada reflects its particularly strong customer loyalty there and contributes to its high CSAT score.
Customer satisfaction scores and benchmarks vary from one industry to another, reflecting differing expectations. The UK Customer Satisfaction Index (UKCSI) provides industry-specific CSAT benchmarks, which we will use for this comparison.
Retail and e-commerce CSAT benchmarks typically range from the 70s to the 80s. Managing customer expectations, especially for online shoppers, is crucial. During the 2020 pandemic, online retailers saw the largest decline in customer satisfaction across all retail categories as they struggled to meet demand.
Here are some good CSAT scores for the retail and e-commerce industry:
Healthcare CSAT scores range from the 60s to the 80s. Timely and compassionate care is crucial to the patient experience and directly influences satisfaction.
Here are some optimal healthcare CSAT scores:
In the finance sector, a strong CSAT score is around 80, which is slightly higher than in some other industries we’ll review.
Here are some good customer satisfaction benchmarking scores:
CSAT scores are critical to success in the SaaS industry, with companies like Google and Amazon Prime Video emphasising high customer satisfaction.
Here are some good SaaS CSAT scores:
According to Gallup, K-12 education satisfaction in the U.S. reached an all-time low of 36%. In 2023, K-12 education satisfaction in the U.S. was nine points below the historical average of 45%. This is probably due to the increase in teacher departures and the shortage of qualified educators in the U.S.
To improve your business’s CSAT score, you should focus on putting the customer at the centre of your operations. You should ensure top-quality products and services as well as invest in customer interaction and support services training.
The first step is to gather detailed customer feedback by means of comprehensive and targeted surveys. These surveys provide more in-depth insights than standard CSAT surveys. Consider including survey questions such as:
The feedback obtained from these questions will guide your business’s growth strategy and enhance customer service.
A critical step that is often overlooked is acting on customer feedback. Although collecting and analysing feedback is certainly valuable, meaningful improvements require action based on the insights and responses received.
After gathering feedback, identify and analyse key issues, such as inconsistent product quality, long waiting times or shipping delays. Determine which pain points are relevant to your brand and implement strategies to address them. These improvements are essential for increasing customer satisfaction.
Enhancing customer interactions, both in-store and online, will have a significant impact on overall satisfaction. Interactions with your staff can profoundly influence a customer’s experience with your brand. Every interaction, regardless of its scale, is important.
Ensure that every customer feels valued as if it were their first visit. Monitor customer experience metrics over time to gauge improvements in your business’s interactions.
To enhance in-store customer interactions, you should train employees to deliver positive and personalised experiences. Although it may take some time to see the results, personalisation – as seen with Abercrombie & Fitch – can significantly boost satisfaction.
Consider the following factors for improving in-store experiences:
Online customer experiences are different from in-store experiences in many ways. Online retailers can focus on the customer experience by evaluating their website’s usability, competitors’ policies and prices, and support teams.
Boosting customer service quality can increase your CSAT score, so customer service should be at the top of your list for improvements.
There are several ways to help improve your company’s customer service quality, including:
A customer-centric culture enhances loyalty and satisfaction. To build this culture, focus on delivering positive experiences at every touchpoint. Ensure that every business decision considers the customer impact. Here are two steps you can take to foster a customer-centric culture:
A good CSAT score generally ranges from 70% to 85%, although this varies from one industry to another and according to the sample size. It is crucial to measure customer satisfaction and gather feedback to enhance the customer experience.
Refer to industry benchmarks when interpreting your CSAT score and prioritise continuous improvement to boost customer loyalty and attract new markets.
To collect customer feedback, use SurveyMonkey’s CSAT surveys and other tools. Get started today to access our free survey templates.
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