KPI Name

Customer Satisfaction Score (CSAT)

Introduction to the Customer Satisfaction Score (CSAT) KPI

The Customer Satisfaction Score (CSAT) KPI measures how satisfied customers are with a product, service, or specific interaction. It is one of the most widely used customer experience metrics because it delivers quick, direct feedback that helps companies understand how well they meet customer expectations.

What Is Customer Satisfaction Score (CSAT)?

CSAT captures customer sentiment by asking customers to rate their satisfaction, typically on a scale from 1 to 5 or 1 to 10. The formula is:

(Number of Satisfied Customers ÷ Total Responses) × 100

“Satisfied customers” usually refers to those giving the highest ratings (e.g., 4–5 on a 5-point scale).

Why This KPI Matters

CSAT provides immediate insight into the quality of customer experience. It helps companies understand:

  • Satisfaction with products, services, or support

  • Pain points in the customer journey

  • How well teams handle interactions

  • Opportunities for product or service improvement

  • Early warning signs of dissatisfaction and potential churn

High CSAT scores often correlate with increased loyalty, stronger word-of-mouth, and improved customer retention.

How to Use This KPI Effectively

Companies usually measure CSAT after key touchpoints—such as purchases, support interactions, or onboarding. Segmenting CSAT by product, channel, agent, or customer type uncovers actionable trends. When combined with Net Promoter Score (NPS), Customer Effort Score (CES), and Churn Rate, CSAT provides a powerful view of customer satisfaction and long-term loyalty potential.

KPI Description

Measures customer satisfaction based on survey responses.

Tags

Category

Customer Support

Alternative Names

Customer Happiness Score

KPI Type

Quantitative, Lagging

Target Audience

Customer Support Managers, Business Owners

Formula

CSAT = (Number of Satisfied Customers ÷ Total Survey Responses) × 100

Calculation Example

If 800 out of 1,000 respondents rate satisfaction as positive, CSAT = (800 ÷ 1,000) × 100 = 80%

Data Source

Customer surveys, feedback forms

Tracking Frequency

Monthly, Quarterly

Optimal Value

A score above 80% is generally considered good.

Minimum Acceptable Value

A low CSAT suggests customer dissatisfaction and potential churn.

Benchmark

Industry benchmarks: SaaS ~75-85%, Retail ~80-90%, Hospitality ~85-95%

Recommended Chart Type

Bar chart (to compare departments), Line chart (to track trends)

How It Appears in Reports

Displayed in customer service reports to evaluate satisfaction trends.

Why Is This KPI Important?

Indicates how well a company meets customer expectations.

Typical Problems and Limitations

Can be biased if only highly satisfied or dissatisfied customers respond.

Actions for Poor Results

Improve customer service training, enhance product quality, offer proactive support.

Related KPIs

Net Promoter Score (NPS), Churn Rate, First Response Time

Real-Life Examples

An airline improved CSAT from 75% to 88% by reducing average wait times for support calls.

Most Common Mistakes

Focusing only on CSAT without addressing deeper customer concerns.