Customer Satisfaction

Customer Satisfaction (CSAT) is the measure of how much a company's products, services, and overall experience meet or exceed customer expectations. It is a metric that captures the customer's emotional and rational perception regarding the quality of the interaction and the performance of what they purchased.

What it's for / why it's important

Customer Satisfaction is a crucial performance indicator and serves as a barometer of the overall health of a business. It is important because:

• It Indicates Loyalty: A high level of satisfaction is directly correlated with greater Loyalty and a reduction in the Churn Rate.
• It Guides Growth: Satisfied customers are more likely to become Brand Advocates and generate positive word-of-mouth.
• It Supports Up-selling: Happy customers are more open to additional purchase proposals or premium versions (Up-selling and Cross-selling).
• It Provides Feedback: CSAT measurements identify friction points (pain points) in the Customer Journey, allowing the company to intervene in a targeted manner and improve the Customer Experience (CX).

When it's used / in what context is it useful

CSAT is useful for companies that want to monitor the quality of the experience at specific and critical moments. It is measured through short, targeted surveys:

• Post-Interaction: Immediately after an interaction with Customer Care or technical support.
• After Purchase: To evaluate the checkout and delivery experience.
• After Onboarding: For services (SaaS) to evaluate the initial usage experience.

The standard metric is usually a question on a scale from 1 to 5 (or 1 to 7) asking: "How satisfied are you with the service/product received?".

Practical example

After a customer has completed a chat with support to resolve a billing issue, a pop-up appears with the question: "How satisfied are you with the help received?" with responses ranging from 1 (Very dissatisfied) to 5 (Very satisfied). If out of 100 responses, 70 are "Satisfied" (4) or "Very satisfied" (5), the CSAT is calculated as 70%. This rate is then monitored over time to detect trends and service problems.