What Is CSAT in Contact Centres and How to Measure It

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Happy customers rule the business world. The happier your customers, the better your chances of beating your competition.

That’s why it’s crucial to always check how satisfied your customers are with your business. Ever heard of Customer Satisfaction Score (CSAT)? No worries if it’s new to you!

This blog will break down CSAT and show you how to use it in your business, so you can keep your customers smiling and your business thriving.

What Is CSAT and Why Is It Important?

Let’s start with understanding what is CSAT. CSAT, or Customer Satisfaction Score, is like a mood ring for your business.

It tells you how your customers feel about the services, products, or support they’ve received from you. Imagine it as a quick survey that pops up after a customer interacts with your business, asking them to rate their experience on a scale. A score of 80% or higher is generally a thumbs-up.

But remember – what’s considered good can vary by industry, so it’s good to know your industry’s average. Once you’ve got that benchmark, you can compare, tweak things, and aim to score higher than the industry norm.

Why is CSAT important?

As mentioned, CSAT is your business’s compass for creating stellar customer experiences. Once you’ve measured the satisfaction of your customers, you can fine-tune your support and product offerings.

It’s not just about making customers happy; it’s about keeping them hooked, especially since acquiring new customers is pricier than retaining existing ones.

Neglecting CSAT can lead to a domino effect – unhappy customers may seek competitors, and your support centre could face a high turnover rate.

So, make CSAT your business ally, guiding you toward customer loyalty and overall higher quality assurance.

How to Measure CSAT?

Wondering how to calculate CSAT? We’ve got a simple guide to help you navigate the process. First things first, set a clear goal for measuring CSAT—ask yourself why and choose the right moment to pose the question.

Develop a detailed plan outlining how you’ll utilize CSAT insights to drive positive changes in your business.

Consider the bigger picture by aligning CSAT with your overall customer experience (CX) data strategy to ensure actionable improvements.

Once you’ve laid the groundwork, it’s time to get practical. Customer satisfaction surveys, usually brief and straightforward, gather feedback on satisfaction levels following customer interactions. After collecting responses, here’s the step-by-step process to calculate your CSAT score:

  1. Sum up the number of 4 and 5 ratings from your CSAT survey.
  2. Total all responses received.
  3. Divide the number of satisfied responses by the total.
  4. Multiply the result by 100 to get the percentage.

For example, if 780 out of 1,000 customers provided the top scores, your CSAT formula would be (780/1000) x 100 = 78%.

This score serves as a baseline for understanding customer happiness and is the first step toward creating delightful customer experiences.

What Is a Good CSAT Score?

Let’s see what is a good CSAT score. Companies typically set their sights on a percentage scale, where 100% is fantastic, and closer to 0% isn’t great.

According to the American Customer Satisfaction Index (ACSI), most industries average between the mid-60s to mid-70s, with scores below 40 indicating poor performance.

When it comes to CSAT, a solid score usually falls between 75 and 80%, implying that at least 3 out of 4 customers have given a positive rating. Here’s a breakdown of CSAT scores for various industries according to the ACSI’s 2023 data:

Industry CSAT Score
Internet providers 64
Social media 71
Online news 73
Streaming 74
Hotels 75
Online search 75
Airlines 76
Fast food restaurants 76
Online travel 76
Specialty retail 77
Automobiles 78
Banks 78
Software 78
Apparel 79
Cell phones 79
E-commerce 80

How to Improve CSAT in a Contact Centre?

Improving CSAT in a contact centre involves a comprehensive approach, optimizing every aspect of the customer journey and enhancing the experience for both customers and those interacting with them.

According to the Temkin Group, companies investing in customer experience can expect revenue to double within 36 months, emphasizing the importance of improvement. To elevate CSAT and customer experience (CX), consider the following best practices:

1. Create a Customer-Centric Environment

Place customers at the core of your operations, ensuring every aspect of your business model prioritizes their needs. Analyze the customer journey, understanding how strategies evoke specific emotions.

2. Introduce Faster Support Channels

Embrace modern digital channels, such as live chat, co-browsing, and social media, to complement traditional methods. Utilize state-of-the-art customer support technology for faster and more consistent support.

3. Create a Personalized Experience

Engage customers through their preferred communication methods, whether it’s text messaging, browsing, or video calling. Tailor support flows to meet individual preferences, positively impacting customer retention.

4. Collect and Act on Customer Feedback

Actively listen to customer feedback obtained through surveys and use it to evaluate and improve CSAT scores continually. Implement changes based on customer input to bridge the gap between customer expectations and reality.

5. Leverage Technology With AI

Embrace AI to enhance self-service offerings, providing faster and more accurate responses. Use AI to triage queries efficiently, ensuring customers are directed to the right solutions promptly.

6. Engage With Other Metrics

Analyze CSAT scores alongside other contact centre KPIs like Customer Effort Score (CES), First Contact Resolution (FCR), and Net Promoter Score (NPS) to gain a holistic understanding of customer sentiment.

CSAT vs NPS vs CES: A Comparative Look at Customer Satisfaction Metrics

Criteria CSAT NPS CES
Definition Measures customers’ satisfaction with a product, service, or interaction, often based on survey responses or feedback. Measures the likelihood of customers recommending a company’s product or service based on a scale from 0 to 10. Measures the ease with which customers can resolve issues or complete tasks, often based on a survey with a statement about ease.
Scale Usually a 1-5 or 1-7 scale. 0-10 scale with Promoters, Passives, Detractors. Usually a 5- or 7-point scale.
Question Type “How satisfied are you with [product/service]?” “On a scale of 0 to 10, how likely are you to recommend [company] to a friend or colleague?” “How easy was it to [complete a task]?”
Focus Overall satisfied customers with the product or service. Customer loyalty and likelihood to recommend. Level of effort required to complete a task.
Measurement Percentage of positive responses to a satisfaction survey question. Calculation based on the percentage of promoters minus detractors. Responses based on agreement with the statement about ease.
Benchmark An average score above 75% is considered good. A positive NPS (above 0) is considered good. A lower score indicates better customer effort.
Industry Applicability Widely applicable across industries. Commonly used in various industries, especially B2C. Suitable for industries where customer effort is a critical factor.
Limitations May lack depth in understanding specific issues or areas for improvement. Scores may not always correlate with customer behavior. Focuses on effort but may not capture overall sentiment or specific issues.

Key Metrics for Contact Centres

Apart from CSAT, here are some other key contact centric metrics that will help you improve the efficiency of your contact centres.

1. Average Handle Time (AHT)

The average time a customer service representative spends on handling a customer interaction, from initiation to completion.

2. First Contact Resolution (FCR)

The percentage of customer inquiries or issues resolved successfully on the first interaction without the need for follow-up.

3. Service Level

The percentage of customer calls answered within a specified time frame, it is often expressed as a percentage answered within a set number of seconds.

4. Abandonment Rate

The percentage of customers who hang up or abandon their phone call before reaching a customer service representative.

5. Net Promoter Score (NPS)

Measures the likelihood of customers recommending the call centre’s services to others, based on a scale from 0 to 10.

6. Customer Effort Score (CES)

Evaluates the ease with which customers can resolve their issues or complete tasks when interacting with the contact centre.

7. Occupancy Rate

The percentage of time agents spend actively engaged with customers or tasks compared to their available working time.

This blog post has been re-published by kind permission of Five9 – View the Original Article

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Call Centre Helper is not responsible for the content of these guest blog posts. The opinions expressed in this article are those of the author, and do not necessarily reflect those of Call Centre Helper.

Author: Five9

Published On: 12th Feb 2024
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