Customer Satisfaction Metrics To Monitor in 2021

May 13, 2021

Customer satisfaction (CS) is not just a key but like a blockchain-protected passcode that will allow you to access success as long as you know how to use it. 

But the question is, how will you access it when you don’t even know the password? 

If you don’t even know how to calculate customer satisfaction, how will you derive useful and actionable insights?

That’s where customer satisfaction metrics come into play. 

There are many CS metrics that organizations use to measure customer satisfaction scores based on feedback. In this article, we will cover the most important and impactful CS metrics you need to track.

The metrics to measure customer satisfaction are spread throughout the customer experience (CX) to gather feedback as a whole. Thus, CS metrics are also known as CX metrics. 

What is Customer Experience (CX)?

By definition, Customer Experience results from the interaction between a customer and an organization. It is typically what a user feels towards a company, based on the quality of experience upon engaging with a brand. 

It starts from the very first interaction until the customer completes their purpose with the brand. CX is explicitly related to CS since the former is the basis for measuring the latter.    

CX is one of the most prominent components of any business. A report by PwC states that 86% of the customers are likely to spend more for a better customer experience. So, if customers value CX so much, how can businesses afford to neglect it?  

Benefits of Measuring Customer Satisfaction Metrics

Before we move on to discussing customer satisfaction measurement tools, let’s take a little detour to learn why companies need CS survey metrics?

Lower Your Churn Rate

Also known as the rate of attrition, it’s the rate at which customers abandon a business entity’s services. The question is, why would customers stop doing business with a company? 

A survey by ThinkJar states that as much as 67% of customers churn based on their bad experiences with organizations. In which case, with customer satisfaction measurement tools, you can identify how many customers have had unpleasant experiences and how. This way, you can find out how high your churn rate is and what factors are causing it.  

Once identified, it becomes easy to develop actionable strategies (big or small) to improve CX aspects.

Ace Your Marketing Strategy

It is imperative for every business to have a clear vision of where they should invest their capital for the best results. 

For instance, as much as it is essential to invest in marketing channels, it is necessary to know which marketing channels are worth it. A business may target 4 to 5 different marketing platforms, but only a few might drive customers.

To that end, customer satisfaction survey metrics will help you gather data from which marketing channels they found about your brand. It is the best way to reallocate the advertising budget strategically.

Case Study: Udemy

A reputable platform like Udemy also went through the same situation to figure out the most active marketing channels for funds reallocation. 

Watch this video to learn how customer feedback helped Udemy learn the effectiveness of their advertising spends across different locations. 

The learning platform could also make product optimizations based on its users’ customer satisfaction survey responses.

Read in detail about how they did it here.

Weapon to Battle Competition

Gartner’s report on Customer Experience Survey mentions that two-thirds of marketers accountable for CX believe they compete based on their company’s CX. 

It signifies that CX is the latest trend or rather a tool to compete against the competitors. Why? Because that is what customers demand. 

Previously, customers used to rate companies based on their products and services. But this shift towards prioritizing experience now is something that should not go unnoticed by companies if they want to stand the tides of cut-throat competition.

Word of Mouth Is More Efficient Than Any Campaign

It’s not surprising that according to a HubSpot survey, a staggering 81% of customers prefer to trust recommendations from friends and family instead of a brand. 

Hence, as many efforts as you may pour into grand marketing with many a remarkable copy, one bad word of mouth can quickly turn a dozen more potential customers towards your competitors. 

Therefore, if you continuously track customer satisfaction ratings, you can pinpoint customers’ pain points, resolve them, and create a memorable experience for your users. 

What Are the Metrics to Measure Customer Satisfaction? 

Before we discuss how to measure customer satisfaction, you’ll need to know on what basis you will select the metrics, right?

The first step towards choosing the right customer satisfaction metrics is to set a goal. 

What do you want to find out with the feedback? 

What will you do with the collected data? 

The objective should be crystal clear for everything to make sense. For instance, you may want to know whether your customers are satisfied enough to recommend you to others, whether they are happy with your new UX, and more. 

Each CS/CX metric has a purpose for which it is used. Here is how you can evaluate customer satisfaction to generate more revenue and business further. 

1. Customer Satisfaction Score (CSAT Score)

CSAT calculation using Qualaroo

What Is CSAT Score?

It is one of the most popular CS measurement tools that help businesses evaluate how satisfied customers are with their products and services. 

Customers are asked to rate their satisfaction level in response to the question asked on a scale starting from one (being the lowest) to a predetermined number (say 5, 10, etc.). The higher number signifies a higher level of satisfaction. 

What Is a Good Customer Satisfaction Score? 

If your CSAT survey has ratings from 1 to 10, anything from 7 to 10 is considered a good CSAT score.

CSAT is not restricted to numerical scales when evaluating CSAT scores. You can also use emoticons. It is a great way to directly approach users’ emotions without language barriers since emoticons are very expressive and universal. 

Besides numerical or emoticons, surveyors also use the percentage as a metric, where the same rule of ratings applies.

How Does It Work?

Regardless of how meticulous a business is in making their online presence as optimized and effortless as possible, there are always a few loopholes that sneak up later when users are using the website. 

For instance, Hootsuite is a well-known social media management platform that helps its customers access all their social media platforms in one place. 

Many website visitors were aware of their services; nevertheless, the high visitor count would turn into a high bounce rate within minutes of visiting the landing page. 

What was Hootsuite doing wrong? Why were visitors not converting into customers, thus disturbing the sales funnel?

Using feedback software, they set up a CSAT survey on their landing page and collected feedback regarding ease of use, relevancy, and overall experience.

It turns out, the landing page itself was not clear to paint an accurate picture of how to get started with the service. 

HootSuite Testimonial for Qualaroo

The CSAT survey pertains to one thing in particular – how users would rate the experience and satisfaction with the service/product when the interaction is still very recent. 

This way, Hootsuite targeted their CSAT survey at the right place (landing page), at the right time (when the users were active or about to leave), and asked the right questions. 

It helps if you keep measuring the CSAT score when you have taken action on the previous feedback to know if your improvements have been well-received or not.

Questions to Ask in a CSAT Survey

At a basic level, a CSAT survey consists of two types of questions:

  • Questions asking customers to rate their satisfaction levels
  • An open-ended question follows the first one, asking what the customers liked or what can be improved depending on the rating
Survey Questions using Qualaroo

Here is a sneak-peak into the types of questions you can ask on a CSAT survey:

For more ideas, visit and bookmark this Survey Question Library.

You can always edit and customize your questionnaire according to your purpose, i.e., customer journey, product, last interaction, and more. 

When to Deploy a CSAT Survey?

To get the most optimum results, it is best to conduct a CSAT survey when the customer experience is still new and fresh for them. 

If you wait too long to ask for their feedback, it is possible that they might miss minor details over time and not give you feedback on the true experience. They might not even take the survey for an event that had long passed.

You should conduct a CSAT survey when you need to get insights into some crucial areas such as:

  • Sales interaction
  • Customer support interaction
  • To gauge overall customer sentiment
  • To gather feedback on any event or conference
  • Customer onboarding
  • Product and sales satisfaction
  • Checkout process and more

How to Calculate the CSAT Score?

Because CSAT surveys are very clear, straightforward, and simple in their approach, it is relatively easy to calculate the CSAT score. 

All you need is to divide the number of positive responses by the total number of responses and multiply their result by 100. You will get your CSAT score in percentage. Here is how:

Assume: 

Total number of responses – 70

Number of positive responses – 42

Then: 42/70 X 100 

Hence, you get a 60% CSAT score.

2. Net promoter Score (NPS)

What is NPS?

In layman’s terms, NPS is one notch higher than the CSAT score. This metric collects the satisfaction level of the users and gauges the level of loyalty towards the brand. 

Think of it as a growth indicator that tells you how likely customers are to recommend you to their friends, family, and acquaintances.   

NPS, again, is a prevalent metric to analyze the churn rate of customers. It helps brands identify which customers need the boost to tip them towards the scale of loyalty.  

What Is a Good NPS?

Speaking of a good NPS score, anything above 0 is considered a good score. Why? It shows that some of your users are loyal. If you score above 20, it can be seen as a ‘favorable score.’ A score above 50 is a very good one, and anything above 80 is ‘Excellent.’ 

How Does NPS Work?

NPS surveys for customer satisfaction feedback are very easy and concise for users. They can be targeted at any stage in the customer journey via channels like pop-ups, SMS, e-mails, and more. 

In the NPS survey, users are asked a simple question to which the answer is binary from 1 (referring to not at all likely or detractors), 7-8 (neutral or passive), to 9-10 (promoters or highly likely). 

Questions to Ask in an NPS Survey

Here is the most basic example of an NPS question:

“On a scale of 1to 10, how likely are you to recommend our product/service to others?”

When to Deploy an NPS Survey?

You can schedule NPS pop-ups to appear at certain times, such as (and more):

  • After a purchase/signup for a trial
  • After a customer connects with the support team
  • When a certain action is taken on the website
  • Prior to the end of the subscription

Here again, you can follow up your NPS question with another open-ended question, this time to understand the reason behind customers giving low scores. 

You can also ask your first-time customers about their experience, existing customers at random intervals (say after six months), and at many such instances to gauge user feedback.

Here is a video explaining NPS Survey recipes that you can try out:

How to Calculate NPS Score?

It is straightforward to calculate the NPS score if you have easy-to-use and right NPS survey tools. Here is how to measure NPS:

Calculating NPS score

3. Customer Effort Score (CES)

What is CES?

Apparent from the name, CES refers to the level of customer satisfaction based on the amount of effort they had to put to avail of your services or complete a task on your website.

You can say CES is more specific when it comes to targeting customer satisfaction. It only focuses on one aspect of CX – customer efforts.  

One of the essential ingredients in the recipe for customer satisfaction is to reduce the time and efforts customers have to invest in doing business with you. 

With the help of CES customer satisfaction metrics, businesses can quickly identify how easy their process is for customers. If the overall feedback shows negative results, companies can eliminate this issue and even take proactive measures in the future. 

What Is a Good CES Score?

For CES score, there are no definitive industry standards set in place to assign ‘good’ or ‘bad’ quality to a score. However, it is generally believed that a score of 5 and above on a scale of 7 is an excellent score.

According to the Corporate Executive Board (CEB), uplifting a customer from 0 to 5 on a scale of 7 can boost users’ loyalty by 22%. Whereas moving a customer from 5 to 7 only increases loyalty by 2%.

How Does CES Work?

It is probably the simplest metric out of all. It generally consists of one simple question gauging the level of effort users had to put while doing business with a brand. A statement is provided along with different options ranging from strongly disagree to strongly agree. 

Customers can choose between the options given in the survey. For instance, in the above template, customers can choose from the lowest score of 1 (strongly disagree) to 7 (strongly agree).

It provides direct feedback on what customers are experiencing with the brand.

Questions to Ask in a CES Survey

Under CES metrics, the questions differ from the other two metrics. To help you out even more, here are some basic but on-point questions you can ask your customers in a CES survey:

  • What do you think we should improve in our checkout process?
  • On a scale of 1 – 10, how would you rate our service?
  • To what extent do you agree or disagree with the following statement:
    • [Company name] made it easy for me to get help with my issue.
    • [Company name] made it easy for me to find a solution to my issue.
  • Is there anything we can do to make our service more useful?
  • Was this help section useful?
  • Did you find the information you were searching for?

{While we are reading about CES, here is some more information about the difference between CES and UES (User Effort Score)}

When to Deploy a CES Survey?

Businesses generally consider using a CES survey right after a customer service or a product/service touchpoint. For instance, you should consider a CES survey once a user:

  • Signs up for a free trial 
  • Has had interactions with customer support/success
  • Completes a certain task related to your product
  • Accesses information from your business

You can gather some real-time feedback this way if you ask the question right after the event. In that way, CES is great at collecting real-time feedback.

Tools to Use For Customer Satisfaction Measurement

To ace your CSAT, NET, and CES survey, you need to have remarkable customer satisfaction measurement tools to assist you. 

Choose a tool that not only effectively collects the customers’ feedback at the right place, at the right time, and with the right set of questions, but also analysis and categorizes the data for better understanding.

Here are some preferred and trusted customer feedback tools that help you evaluate customer satisfaction metrics.

CSAT vs. NPS vs. CES 


CSATNPSCES


Basic Questions
“How would you rate your overall satisfaction with our product?”“On a scale of 1 to 10, how likely are you to recommend our product/service to others?”
“How easy was it for you to get a solution to your problem?.”

Measurement Scale
Binary, emoticons, and percentage.Scale (1 to any predetermined number).Strongly disagree/ Disagree to Agree/ Strongly agree.


Purpose
To analyze the overall customer satisfaction with the services/products.To identify how likely your customers are to recommend your company to others. Helps identify promoters, passives, and detractors.To gauge the level of users’ effort needed to complete a task.


Method to calculate
CSAT = Number of positive responses / Total number of responses X 100

NPS = % of promoters – % of detractorsCES = Sum of all Customer Effort Scores /Total number of respondents.
ApplicabilityOffers a variety of questions to ask for specific purposes.Allows us to understand customers’ true opinion and their preference of one brand over another.Helps target a specific purpose.


Cons
Focuses on specific purposes/product/service and not the overall relation between user and company. Does not guarantee that customers will refer to the brand to others in real life, despite what the survey says.

It requires a follow-up open-question to gather actionable feedback.
Can only measure effort based on services.

Only addresses customers’ issues superficially and does not offer insights into the root cause.

Bonus: Additional Customer Satisfaction Metrics 

Besides the three CS metrics we discussed, you should consider four other ancillary metrics while assessing the quality of your services or products.

4. Customer Service Satisfaction (CSS)

As the name suggests, this metric gauges the level of satisfaction a customer gets after a particular interaction with your support personnel. It is used as a post-purchase metric to understand if they find the product or services as good as it was claimed to be.

You can collect CSS feedback every time a customer reacts with your business to keep tabs on how helpful and effective is your customer support. It is an ongoing process and does not require additional efforts every time you collect feedback once it is properly set up.

You can integrate CSS in any type of communication channel such as live chat, pop-ups, video chat support, forms, online surveys, and others.  

You can ask more than one question, depending on what type of feedback you want to collect. Emoticons ratings or rating in general also works amazing for CSS survey, followed by an open-ended question to understand why customers gave a low rating.

It is to be noted that CSS only helps gather feedback for a single interaction and does not paint the whole picture.

5. Customer Health Score (CHS)

Unlike other survey metrics, Customer Health Score is more of a process that aims to analyze customer behavior to determine their score or leaving or staying in your business. 

CHS metrics observe each customer’s behavior and assigns them a score based on the analysis to categorize them as promoters and detractors. It helps businesses take preventive measures to lower the churn rate and increase the retention rate.

The question is – What factors are measured in the CHS metric to evaluate the score?

Among many, the most crucial parameters to analyze are – How frequently customers use your product, what do they prefer more between premium and free versions, how many products they use from your brand, frequency of contacting customer support, amount of purchases, and so on. 

Since each business is unique in its own way, the parameters may change a little bit. However, what remains constant is grouping customers into three categories: healthy (going to stay), at-risk of leaving, and poor (decided to leave). 

This metric helps businesses take proactive measures since they can see which customer is at risk by analyzing their declining engagement and behavior.

6. Online ratings/reviews

Another metric to understand how successful are your services and products among customers is to analyze online reviews and customer ratings. The best thing for this is to allow your customers to review and rate your services or products after a while, i.e., they have had a chance to experience them.

You can also track reviews and ratings related to your products on many forums such as Yelp and Reddit

Here is how you can calculate average ratings –

Average Ratings (AR) = 1*a+2*b+3*c+4*d+5*e/5

Here, numbers (1,2,3,4,5) signify the ratings and alphabets (a,b,c,d,e) are the number of ratings. 

7. Customer Churn Rate (CCR)

Customer Churn Rate aims at examining the rate at which customers stop engaging with your business. A high rate signifies that customers who are not satisfied with your services or products are leaving. 

If you experience a high churn rate, it is time to introspect and find the bottlenecks and resolve their issues to prevent the rate from increasing further.  

Here is how you can calculate the CCR –

CCR = Number of clients at the starting of a quarter – number of clients at the end of a quarter 
Number of clients at the starting of a quarter

Know Your Customer – Inside Out!

These customer satisfaction metrics play a crucial role in helping businesses get a little bit closer to the ground reality of their brand image and how users feel about their services/products. However, it’s all for nothing if not implemented for the right purposes and at the right place. 

To make the efforts count, you should always deploy a robust customer satisfaction metric tool to conduct spot-on surveys, collect valuable feedback in view of these metrics, and get the desired results.

FAQs

Q. What metrics measure customer satisfaction?

Net Promoter Score, Customer Satisfaction Score, and Customer Effort Score are the three main customer satisfaction metrics that organizations use to track customer satisfaction. 

Q. What are customer metrics?

Customer metrics are the metrics that help organizations analyze and track customers’ feelings towards a brand and their real experience.

Q. How do you track customer success?

There are a few ways through which you can monitor customer success. They are:

  • Net Promoter Score (NPS)
  • Churn rate
  • Average revenue/profit per customer
  • Customer engagement
  • Customer growth
  • Free to paid conversion rate
  • Positive feedback

Q. How do you measure customer satisfaction KPI?

The best way to track customer satisfaction KPI is by using CSAT surveys.


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Do you want a free Survey & Feedback Software?

We have the world’s most versatile user research & feedback survey tool starting at $0

Do you want a free Survey & Feedback Software?

We have the world’s most versatile user research & feedback survey tool starting at $0