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 build loyalty and drive long-term growth.
Monitoring your customer satisfaction score is the first step in increasing or maintaining a good score.
This article explains how to calculate CSAT, define a good score, and improve your CSAT score.
CSAT is a customer experience (CX) metric that measures how customers feel about your business. CSAT surveys help you build customer loyalty, increase retention rates, and uphold a strong brand reputation.
CSAT scales, 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 from survey results involves a straightforward formula.
To calculate your CSAT score, you need 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 if your CSAT score is good is more nuanced than it seems. While typical ranges exist, the true measure comes from benchmarking against industry peers.
A "good" CSAT score 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, with 1 representing the worst and the highest number 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 - Somewhat unsatisfied
5 - Neutral
6 - Somewhat satisfied
7 - Satisfied
8 - Very satisfied
9 - Extremely satisfied
10 - Perfectly satisfied
The satisfied or “good” scores are as follows:
Achieving a perfect score is difficult, but you can monitor customer satisfaction and improve based on customer feedback, turning Detractors into Promoters.
Abercrombie & Fitch improved its CSAT score by 40% through a strategic initiative in 2017 focusing on personalizing the in-store shopping experience. The company enhanced service quality by training associates to leverage customer data, such as purchase history and style preferences, 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 program and focus on value-based, high-volume sales. Costco’s 92.6% membership renewal rate in the U.S. and Canada reflects its strong customer loyalty and contributes to its high CSAT score.
Customer satisfaction scores and benchmarks vary by industry, reflecting differing expectations. The American Customer Satisfaction Index (ACSI) 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 good CSAT scores in 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 impacts satisfaction.
Here are optimal healthcare CSAT scores:
In the finance sector, a strong CSAT score is around 80, slightly higher than in some other industries we’ll review.
Here are good customer satisfaction benchmarking scores:
CSAT scores are critical to success in the SaaS industry, with companies like Google and Amazon Prime Video emphasizing high customer satisfaction.
Here are good SaaS CSAT scores:
According to Gallup, American satisfaction with K-12 education quality reached an all-time low of 36%. Satisfaction with K-12 education in 2023 was nine points below the historical average of 45%, likely due to the increase in teacher departures and the shortage of qualified educators in the U.S.
To improve your business’s CSAT score, focus on putting the customer at the center of your operations. Ensure top-quality products and services, and invest in customer interaction and support services training.
The first step is to gather detailed customer feedback through comprehensive and targeted surveys. 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.