Did you know that 64% of consumers stop using a product after a poor customer experience? Luckily, there is a simple metric that can help you identify and measure your customer’s level of satisfaction, so you can stop them from leaving. Say hello to the customer satisfaction score (CSAT). 

The CSAT score is a metric that allows you to understand what your customer’s pain points are, what you need to change or improve, or what’s already working and should stay the same

But what exactly is the customer satisfaction score? How do you calculate it? And why is the customer satisfaction score in SaaS so important? Keep reading to learn all about this and more.  

  • What is Customer Satisfaction Score?
  • How do you Calculate CSAT?
  • Difference between CSAT and NPS
  • Why you should Measure CSAT
  • The Importance of Measuring CSAT in SaaS

Ready? Let’s dive in! 

What is the Customer Satisfaction Score?

The Customer Satisfaction Score (CSAT) is a metric that measures the level of satisfaction a customer has when they use a product or interact with it. You can gather this information at any point in their journey, and it’s as easy as asking them how happy they were during the process. 

There are many ways of finding out how satisfied your customers are, but the most common (and easiest) way is using surveys. There are tons of surveys to choose from, the most popular being the tried and true numerical scale (“rate your experience with us from 0-10”). If that’s not your style, though, there are verbal indicators (“rate your experience from very unhappy to very happy”). And, of course, let’s not forget about smiley faces, thumbs up, stars, and even hearts!

Using CSAT is incredibly useful when trying to deliver an amazing customer experience (CX) – it allows you to take your customers’ opinions into account and adapt your product to best serve them. This will lead to:

In the end, this easy and simple metric will give you so much quantitative and qualitative data about your users’ needs that will help you make better decisions, improve your customer experience, and increase profitability and brand loyalty in general

We know it may sound a bit intimidating, so let’s see how you can actually calculate it. 

How do you Calculate CSAT?

The CSAT score is super easy to calculate – simply take all the positive responses you received, divide it by the total of responses collected, and multiply it by 100. The formula is as follows: 

# of all positive responses 

———————————————————  X 100  = % satisfied customers

Total # responses collected 

So if 58 were positive out of a total of 100 responses, your CSAT score would be 58% – even though the overall experience was good, there’s still some work left to do to reach the top. Generally, a good score should land between 75% and 85%

Top tip! You can search through the American Customer Satisfaction Index to find the benchmarks for your specific industry! 

Using the CSAT score has other functions as well. Not only can you focus on your product’s success by learning your customers’ needs and applying them to the areas that need improvement, but it will also allow you to gather relevant information about your company. For example, you can use the data to implement your customer service or marketing strategy. Pretty neat, right?

Difference between CSAT and NPS

CSAT is not the only metric that SaaS companies use, though – Net Promoter Score is a close second. 

The Net Promoter Score (NPS) is a customer metrics tool that measures the loyalty and satisfaction of your customers and their experience, and lets you predict your future growth.

To calculate your NPS, you need to subtract the percentage of detractors (the number of customers who gave a score of 6 or below) from the percentage of promoters (customers who gave a score of 9 or higher). It’s that easy! 

Don’t forget: scores of 70% or above are what you’re looking for, so keep this as your main goal…

Using CSAT and NPS is key to tracking ​​your customer health score. Still, it’s important to note their differences: NPS gives a more general view of customer satisfaction, whereas CSAT focuses on short-term satisfaction after single interactions

Why you should Measure CSAT in SaaS

Measuring your CSAT score makes it easier to make important business decisions through a data lens. And whether the score is high or low, you can always use this information to your advantage. Analyzing this data is a great way to: 

1. Discover pain points

Discovering what pain points your customers are running into around onboarding, product, sales, customer service…  This is key to ultimately delivering successful customer experiences. CSAT scores will show the most pressing issues you need to fix, making it easier to effectively address them and keep your customers happy.

2. Proactively reach out  

Knowing which customers are the ones that are having issues with your product allows you to proactively reach out to them to garner even more focused and direct feedback. You can send them emails with specific surveys that, in turn, will give you an overview of what your unsatisfied customers need. 

You can use FROGED’s proactive and omnichannel customer support as an easier way to reach out to multiple channels in one place and have those important consumer conversations.

3. Get to know your customers

Customers that have their expectations met are customers that stay. So, noting your user’s personal experiences and expectations will allow you to personalize their experiences even more and make your product the perfect fit. 

With FROGED’s solutions, you can personalize key areas of your product, like onboarding or customer support, to really meet every need of your users. This will make your customers stop churning, and instead, they’ll become ambassadors of your product! 

4. Reduce Churn

As you may know by now, it’s far cheaper to retain the customers you already have than to acquire new ones. But sometimes, it’s hard to figure out who’s having a bad experience with your product and why. That’s where customer satisfaction surveys come in – they’ll help you identify who are the unhappy customers that are most likely to churn so you have the opportunity to jump in and change their minds before they do so. 

The Importance of Measuring CSAT in SaaS

Knowing the CSAT score of your SaaS is a super helpful way of learning about your customers’ feelings toward your product, what their roadblocks and pain points are, and their overall level of satisfaction. A CSAT is key to identifying how you and your product are performing, so you can improve customer experiences that will help you retain customers, avoid churn and improve overall customer loyalty. Long story short: the CSAT score is a much-needed indicator for SaaS growth, so consider implementing it into your strategy straight away!

Excited to know what your customers think of your product? Book a demo to start using FROGED’s proactive omnichannel support so you can reach out to your entire customer base in one place.