What is the Customer Satisfaction Index (CSAT) and how can we increase it?

Customer satisfaction index simply means customer satisfaction with your business. Since satisfaction levels are associated with increased customer loyalty, profitability, and revenue, it makes sense for companies to evaluate their performance on a regular basis. The Customer Satisfaction Index (CSAT) provides an effective way to do this. In this guide, we will tell you everything you need to know about getting started and making the most of this criterion.

What is the Customer Satisfaction Index (CSAT)?

The Customer Satisfaction Index does what its name implies: It measures customer satisfaction with your business. This can include specific contact points during the customer journey or throughout your business. You can include the customer satisfaction index question in some of the larger customer satisfaction surveys or use it alone.

The Customer Satisfaction Index is based on a single question that works to measure customer satisfaction:

How do you rate your overall satisfaction with the product (s) / services you received from Company X?

1- Very dissatisfied

2- Dissatisfied

3- Neutral

4- Satisfied

5- Very satisfied

Like the Net Promoters Index (NPS), the Customer Satisfaction Index provides an overview of your performance. Your score is also a simple and effective way to track customer satisfaction over time. This makes it useful for quickly identifying how satisfaction levels change and understanding the underlying factors that may affect them. For example, you may notice significant fluctuations that occur at the same time as specific schedules or times of the year. Identifying these changes will allow you to take action to improve your customer experience.

The simple and intuitive nature of the question also makes it very easy to answer, thus increasing the likelihood of seeing a good answer rate.

  • How to calculate customer satisfaction index
  • Calculate the percentage of satisfied customers

The most common way to calculate a customer satisfaction index is to determine the percentage of customers who are satisfied with your business. When performing this calculation, only the answers “5- very satisfied” and “4- satisfied” are considered. Divide the total number of survey responses by the number of satisfied customers, then multiply this number by 100 to get your CSAT score as a percentage.

Total number of survey responses ÷ Number of satisfied customers (scores 4 and 5) × 100 = CSAT score (percentage of satisfied customers)

Calculate the average CSAT score

On the other hand, you may want to know your average score from all the answers. This includes adding all your answers and dividing the total number of answers by that number.

How good is customer satisfaction?

CSAT scores vary by industry, and using these scores as a measure of your performance can be helpful. According to research conducted by the Customer Service Institute, the top 5 UK industries in 2021 are as follows:

1- Retail (non-food): 81/2.

2- Leisure time: 80/7.

3- Retail (food): 80/4.

4- Car: 79/1.

5- Insurance: 79.

In general, a score between 75 and 85% is considered good. Ultimately, however, you are your best benchmark. By tracking and improving your score over time, you will reap the benefits of an improved customer experience.

  • How and when to use the customer satisfaction index
  • At key contact points in the customer journey

The customer relationship with your company consists of different contact points. These are the moments when people are in touch with your business, whether before, during, or after the purchase. Examples include completing the sales process, contacting customer support, launching and using a product, or visiting a physical store. At each of these points, you have the opportunity to understand the levels of customer satisfaction. You can then dig deeper to see what you are doing well and where you can progress.

In the months leading up to the contract extension

Customer loss is an inevitable part of the business. However, there are preventative measures you can take to reduce the rate of shedding. In the months leading up to the contract renewal, contact customers to rate their satisfaction. Doing so gives you the opportunity to deal with diminished satisfaction and any particular problem.

After customer interaction with customer service

Customer support teams can be the face of your business. They are usually people who are contacted by customers when something goes wrong or satisfaction is at stake. For this reason, understanding customer satisfaction after these interactions is essential. CSAT can help you and your teams evaluate the success of support case handling.

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5 ways to improve customer satisfaction and increase loyalty

What is the Customer Satisfaction Index (CSAT) and how can we increase it
What is the Customer Satisfaction Index (CSAT) and how can we increase it –

An effective way to start a customer satisfaction strategy is to create a plan of the customer’s journey and points of contact that can occur during the journey. The following steps will help your business monitor the experience you provide to your customers.

Let’s start by understanding the ways to increase customer satisfaction.

1. Understand customers.

Understanding customer psychology should be the focal point of any business, and meeting their needs will help provide a better experience. When businesses operate under a process of predicting, identifying, and meeting customer needs, you can expect quick positive results.

Knowing the customer’s preferences and interests will help you communicate through personal conversations that will strengthen your relationship. 48% of customers expect professional behavior in order to be loyal. When customers are satisfied, they become the best brand supporters who share their success stories and experiences with others.

How does anticipating customer needs help to improve customer satisfaction?

Customers feel valued, their wishes are taken care of, and the problem will not be repeated in the future.
Understanding customer behavior and emotions help provide a higher level of visual support.
Knowledge of the concept helps you to tailor your products and services to the needs and interests of the customer.

2. Provide Omni Channel support.

Simply put, Omnichannel customer support means “be where your customers are”. OmniChannel Support helps businesses simplify all conversations across all channels, such as text, social networking, email, and instant messaging, and seamlessly engage customers through their preferred channels, breaking all silos.

OmniChannel Communications gives you the opportunity to take advantage of ongoing customer support at all points of contact, and not only builds a unified brand experience but also increases brand credibility.

How to increase customer satisfaction by providing OmniChannel support:

  • Simplify all conversations and manage them under one platform.
  • Communicate with customers in real-time and reduce the average response time.
  • High-quality First Call (FCR) improve customer satisfaction.
  • Helps you gain valuable insights into customer profiles in their travel analysis.
  • Businesses can build trust and credibility through consistent experience across all channels.

The Oasis Instagram account is a great example of social interaction. The account created a special gallery of user-generated Instagram content and significantly encouraged customers to wear and display the clothes they purchased from the Oasis store.

3- Provide immediate response with live chat.

In general, if your customers’ questions or concerns are not addressed quickly, they will leave your site. Two of the most common customer service frustrations are waiting for sales or support and staying suspended for long periods of time.

Response time is an important factor in increasing customer satisfaction. 89% of consumers say that the number one factor that leads to a great customer service experience is to solve their problems quickly.

How does live chat help businesses increase customer satisfaction?

  • Personalized Incentives: Agents can find out if customers have questions and help them with personalized stimuli before requesting support.
  • Automatic chat routing: You can automatically forward the chat request to the appropriate agent or department to get a specialized solution and reduce the waiting time.
  • Start an active conversation: Live chat lets you start an active conversation with customers and help them along the way.

4- Maintain customer service etiquette.

“Sixty-two percent of consumers around the world said they stopped trading with a brand after experiencing poor customer service,” the Global State report said. Every business needs to set the rules for how to communicate with its customers. This is what helps increase customer satisfaction and long-term customer relationships.

You need to educate employees on how to interact and communicate with customers to provide excellent service to them.

Here are some tips for customer satisfaction that you can follow:

  • Use positive words and phrases: Choosing words while interacting with customers determines the impact these words will have on them. You can attract customers by using the right words. You can use words like “I’m sorry”, “Welcome” and so on.
  • Listen actively to customers: Active listening is one of the best ways to start serving your customers. This helps you understand exactly what your customers want, what their feedback is, and so on.
  • Appreciate: A sincere thank you will help you. Train the customer support team to appreciate them at the end of the day as a principle of customer service etiquette.
  • Maintain transparency: You should always provide credible information about your product or service to avoid future confusion. Make sure you do not make false commitments or create expectations for customers that will erode their trust and loyalty.

5. Help customers help themselves.

Self-service support works well as an alternative way to reduce the customer service gap. 90% of consumers now expect a brand or organization to offer a self-service customer support portal.

This is often used in the form of user associations, videos, tutorials, comprehensive knowledge databases, and so on. The advantage of having self-service portals is to improve team productivity. By providing an information center, you enable customers to help themselves and educate themselves.

How can self-service be an effective way to improve customer satisfaction?

  • This option allows the customer to actively search for the specific information he needs without having to wait for a long time.
  • Self-service is more satisfying with customers because it offers options to solve the problem faster and easier.
    You can provide tips to customers to get the best value from the products, get information about product upgrades and get newer versions.
  • Customers can share their feedback on products and services, giving you a chance to improve them.
    Self-service is available 24 hours a day. Customers do not have to wait for the support team to get a solution.


As customer expectations grow, so does the motivation to improve customer satisfaction. Investing in modern customer satisfaction strategies such as artificial intelligence, visual tools, and the OmniChannel approach enhances your ability to deliver personalized experiences.

In short, provide a better experience:

  • Increases customer satisfaction and makes customers come back. Simply put, more loyal customers are worth the investment.
  • They set higher customer satisfaction rates, which can be directly related to increasing business revenue.

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