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How to Measure Customer Satisfaction?

How to Measure Customer Satisfaction (CSat)?

Customers are your business’ most important element. However, quantity does not mean quality! If your satisfied customers grow but you don’t nurture them in the long term, chances are they will just leave and not come back. Further, since a growing number of companies compete for the same target audiences, customers have unprecedented power. For this reason, integrating customer satisfaction measurement into your company's products and services is paramount. In this blog post, you'll understand customer satisfaction and how to improve it to achieve business success. Let's find out

What is Customer Satisfaction?

From the perspective of Product Development, customer satisfaction refers to the degree to which a product or service meets or exceeds customer expectations. It encloses customers' feelings, perceptions, and overall experience with a product throughout their interaction, from pre-purchase considerations to post-purchase support.

This metric can be a key differentiator in today's competitive landscape, where consumers have numerous options! Getting valuable feedback allows companies to refine and enhance their offerings continuously. It directly impacts brand reputation, which can strengthen brand loyalty and attract new customers. Finally, investing in product quality and customer satisfaction upfront can lead to long-term cost savings associated with customer service, returns, and warranty claims. Overall, prioritizing customer satisfaction is essential for building successful, sustainable businesses.

What to Consider for Customer Satisfaction?

Customer expectations are not solely based on perception. There are external factors that contribute to their expectations as well. For example, cultural variety based on country, religion, or age. You should acknowledge that people may not appreciate over-friendly customer service teams in some places, while in others, people expect a much friendlier and kinder approach. 

Another aspect is the seller's role, crucial in setting customer expectations. Typically, sellers promise their target customers that they will receive the best quality product possible, automatically increasing customer expectations. If customers don’t obtain the promised quality, it leads to negative experiences, unhappy customers, and negative feedback about your business. 

Likewise, product pricing can be a game changer. Typically, the more expensive it is, the higher the customer's expectations of quality and usability are. Therefore, you must price your product or service according to its quality.

One last aspect to consider is prior experience. When a customer has already used a similar product or has had a positive experience with a brand, their expectations will be higher. In such cases, it's important to maintain the product or service quality and strive to exceed their expectations.

Customer Satisfaction Measurement

These are some steps you should consider when measuring customer satisfaction.

1. Goals Definition

Before selecting the methods and KPIs,  ask yourself why you want to measure customer satisfaction. A great way to assess your goals is to balance the value of the information and its collection costs. You can use this information to improve your business depending on your capabilities. 

2. Key Performance Indicators (KPIs)

Once you've established the business goals, it's time to select what you will measure and how you will do it. For instance, among Key Performance Indicators, customer satisfaction Score (CSAT) is among the most popular. Yet, other ways to understand your customers’ satisfaction include Customer Effort Score (CES) and Net Promoter Score (NPS). 

Customer Satisfaction Score (CSAT). CSAT usually uses a numerical rating score, where customers rate their satisfaction on a scale of 1 to 5 or 1 to 10. You can use the data collected to identify areas for improvement, evaluate marketing success and customer service initiatives, and track changes. Nowadays, you can use Artificial Intelligence (AI) tools to generate CSAT and get more insightful information about satisfaction levels.

● Customer Effort Score (CES). CES is the effort required to complete a particular action, such as solving a problem, making a purchase, or using a feature. Unlike CSAT, which employs a 1-10 scaling rate, “Customer Effort Score” rates effort on a 1-7 rating scale. 

● Net Promoter Score (NPS). NPS measures customer loyalty by using a simple survey with a rating scale of 0 to 10 on how likely they are to recommend the company's product or service to a friend or colleague. You may have seen them alongside platforms or daily-used services.

How to Measure Customer Satisfaction?

3. Method Definition

The best way to measure customer satisfaction is by simply asking them! Among the most common surveys and methods are: 

On-Premises Surveys. Normally, they take place on-site. You can apply two options: give the customer a smart device for a certain time or set it up as a standalone at various touchpoints where customers can take the survey for free and easily provide feedback data.

● Remote Surveys. Here, physical distance is not a limitation. You can talk with your remote customers and know their positive responses or satisfaction level with your product using remote channels such as email, SMS, or website to get customer survey responses.

● Website Surveys. Website surveys are ideal for eCommerce and online shopping websites, SaaS companies, and other online businesses, as you can measure customer satisfaction through a website with just one click. Your website should have different options, such as feedback buttons, popups, slideout surveys, embedded surveys, etc.

4. Data Analysis

Now’s the time to use the collected data by analyzing the metrics. This stage allows you to understand where your brand is performing well and where there may be room for improvement. If you use NPS, you can see how many promoters of your brand you currently have, along with how many detractors. Likewise, you can analyze CSAT levels to acknowledge whether one demographic is more likely to be satisfied than others.

How to Improve Customer Satisfaction?

It's essential to understand and exceed customer expectations to improve customer satisfaction. Meeting customer expectations can vary depending on the industry, sector, and target market. However, it's crucial to continuously comprehend your customers' needs and pain points to make better decisions about Product Development, refine the overall customer experience, and optimize marketing communications.

It's vital to seek customer feedback regularly to ensure customer satisfaction. By paying attention to reviews and addressing complaints immediately, you can avoid losing customers. Optimize feedback channels and customer support to get valuable insights that will help you improve your products and services.

Personalizing customer experiences by tailoring messages, offers, and suggestions to meet their needs and preferences is an excellent way to show that you appreciate them. For effective personalization, you need appropriate data such as demographics, purchase history, and website behavior. Understanding every customer's journey is essential to tailoring customer interactions at every stage.

Customer satisfaction measurement is paramount to evaluating the performance of ongoing solutions or strategies, spotting trends, and addressing urgent issues promptly. Therefore, establishing a process of constant measurement of customer satisfaction metrics is essential.

Lastly, team collaboration is another crucial factor in ensuring customer satisfaction, as it's a multifaceted concept influenced by different aspects of your business. Share customer satisfaction data, insights, and concerns across all teams and departments! It will help every team understand customer expectations, needs, and pain points and work collaboratively to meet their customer expectations.

Why is Customer Satisfaction Important?

Businesses must track and observe customer satisfaction to boost revenue growth. Despite being a statistical no-brainer, only a handful of companies genuinely prioritize customer satisfaction. Measuring indicators of customer satisfaction is multifaceted and has tangible benefits such as enhancing customer retention, boosting potential customer loyalty, spotting enhancement areas, tracking business performance, and understanding what makes happy customers. Therefore, businesses must take customer satisfaction levels seriously and take measures to improve them to ensure long-term success.


Positive customer satisfaction can lead to substantial business growth, while negative feedback or poor experience can ruin a business. Unfortunately, there is no one-size-fits-all solution to solve bad customer experiences. However, to avoid this, companies can use customer satisfaction benchmarks to work on ways to address possible errors. When customers are unhappy with their experiences, listening to and integrating feedback into the business system over time is essential. It will show customers that their suggestions are valued, which can lead to increased customer satisfaction. Remember, customers are the foundation of any successful business!