Key Metrics for Customer Satisfaction

December 11, 2023

Customer satisfaction is extremely important for businesses because unhappy customers harm businesses in the long run. Therefore, there are certain metrics that should be used to improve customer satisfaction. In this article, we will talk about key metrics that play a vital role in measuring satisfaction. Let’s take a look at what these metrics are.

NPS

Firstly, let’s look at what NPS is. NPS stands for “Net Promoter Score.” It is used to assess and improve the customer loyalty of a company or organization.

Additionally, NPS is an effective tool used by many companies to track and improve the customer experience and gain a competitive advantage.

How is NPS Score Calculated?

The calculation consists of the following steps:

1. Customer Survey Preparation

In the first step, send a survey to selected customers regarding your product or service. At the end of the survey, ask:
“On a scale of 0 to 10, how likely are you to recommend this company or product?”

2. Categorise Responses

Divide the answers into three groups:

Promoters: Customers who score 9–10
Passives: Customers who score 7–8
Detractors: Customers who score 0–6

3. Calculate the Percentage of Each Group

Use the following formulas:

Promoter % = (Number of Promoters / Total Responses) × 100
Passive % = (Number of Passives / Total Responses) × 100
Detractor % = (Number of Detractors / Total Responses) × 100

4. Calculate NPS

Subtract the percentage of detractors from the percentage of promoters:
NPS = Promoter % – Detractor %

Your final NPS score will range from -100 to +100, reflecting your customers’ overall satisfaction and loyalty.

Interpretation of Results

Interpreting NPS results is key to understanding customer satisfaction and loyalty.

A positive NPS indicates that customers view your company or product positively. A negative NPS suggests dissatisfaction.

Also, NPS benchmarks vary by industry. Compare your results against industry averages rather than using a generic benchmark.

Taking Action

Acting on NPS results is essential for improving satisfaction. Here are a few recommended steps:

1. Categorising NPS Results

Promoters (9–10): Engage more with this group. Thank them, offer rewards, and gather detailed feedback to enhance your product or service.
Passives (7–8): These customers are satisfied but not enthusiastic. Focus on strategies to increase their loyalty.
Detractors (0–6): This group is dissatisfied. Reaching out to them to understand their concerns should be a top priority.

2. Improve Based on Feedback

Analyze the feedback provided and use it to improve your products, services, and internal processes. Track progress over time by conducting NPS surveys regularly.

CSAT

CSAT, or Customer Satisfaction Score, is another key metric used to measure how satisfied customers are with a product, service, or experience.

CSAT scores are typically based on a 1 to 5 or 1 to 7 scale. Customers rate their satisfaction by choosing a number, for example:
“Please rate this product or service from 1 to 5.”

Stages of Designing the Questionnaire

Goal setting
Defining the questions
Choosing the scale
Visual design
Administering the survey
Collecting and analyzing results
Taking improvement actions
Ensuring continuous improvement

Designing your survey to accurately reflect the customer’s experience is critical to the validity of the CSAT metric.

Score Calculation

The CSAT calculation is straightforward:

Ask customers to rate their satisfaction (e.g., 1 to 5)
Record each customer’s response
Add up all scores
Divide the total score by the number of respondents

Example: If 100 customers give a total of 400 points,
Average CSAT Score = 400 / 100 = 4

This gives you a quick snapshot of how satisfied customers are.

Goal Setting Steps

Evaluate your current CSAT score
Set your target CSAT score
Define a timeframe for achieving the goal
Develop improvement strategies
Monitor progress
Train and inform your team
Analyze and act on customer feedback

CES

CES, or Customer Effort Score, measures how much effort customers must put in to complete a task, solve a problem, or use a service.

It’s typically measured on a scale from 1 to 5 or 1 to 7. Lower CES scores indicate easier, more seamless experiences; higher scores indicate more effort and friction.

Measurement Method

You can measure CES using:

Surveys
Scales (e.g., 1–7 or 1–5)
Open-ended questions
Data collection and analysis
Insight-driven action

Using Results

You can use CES insights to:

Improve business processes
Identify and solve pain points
Guide strategic planning
Train staff
Enhance communication
Drive continuous improvement

Development Areas

Enhancing self-service and digital experiences
Improving support channels (live chat, email, phone, etc.)
Optimizing product and service design
Providing better training and documentation
Systematic feedback collection and action
Team training and performance management
Cultivating a customer-centric culture

In this article, we’ve discussed the most important metrics for measuring customer satisfaction. Applying these methods can help your company increase loyalty and improve the overall customer experience.

If you want to improve customer satisfaction in your business, you can try Grispi’s 14-day free trial today.

Fill out the form for detailed information and demo account, let us call you.