How do you calculate your Customer Satisfaction Score (CSAT)?

Natalie Smithson
AI enthusiast | Tea addict | Focused on using AI assistants to win the working week

What is your Customer Satisfaction Score (CSAT)?

You can use CSAT as a metric to measure how happy or satisfied your customers are with your products or services. It usually comes from surveys or feedback channels where customers rate their satisfaction levels based on their experience.

This metric is key for understanding customer perceptions, identifying areas for improvement, and ultimately boosting customer loyalty and customer retention.

Why is CSAT important?

CSAT directly reflects the quality of your service, so tracking this metric helps your teams gauge the effectiveness of interactions with your customers and identify patterns or issues affecting satisfaction levels. You can then make data-driven decisions to enhance your overall customer experience.

A high CSAT shows customers are delighted with your service, leading to repeat business and positive word-of-mouth reviews. A low score can highlight problems and pain points that need your urgent attention to prevent customer churn.

How do you calculate your customer satisfaction score?

Calculating your customer satisfaction score is relatively simple. It involves collecting feedback from customers through surveys or rating systems where they typically rate their satisfaction on a scale, often from 1 to 5, where 1 is ‘Not at all satisfied’ and 5 is ‘Extremely satisfied’. The average of these individual scores gives the overall customer satisfaction score, say a business gets ratings of 4, 5, 3, and 4 from four customers, the average satisfaction score would be (4 + 5 + 3 + 4) / 4 = 4.

What is a good CSAT benchmark?

While customer satisfaction scores can vary across industries, a good score typically ranges between 75% to 85% or higher. A score above 90% is generally considered excellent, indicating the majority of your customers are highly satisfied with the service they receive. By setting a goal to keep CSAT in this range, you can strive to meet or exceed customer expectations, leading to better customer relationships and increased business success as a result.

Rethinking CSAT strategies to suit the age of AI

A low CSAT score doesn’t mean you’re not trying. You might face budget issues that prevent you from being able to provide the quality of service you’d like to give to your customers, ultimately leaving them dissatisfied. You might not have the technical capability to improve, or be slowed down by legacy software systems that frustrate not only your customers, but your teams too. All of that changes when you introduce an AI assistant and there are no barriers to getting started:

Agents and AI work best together

How we satisfy customers is changing, so if you launch an AI assistant, make sure when you’re measuring CSAT you look at what it was before you introduced AI automation and after, so you can compare the two. This will help you identify exactly where AI most improves the experience for your unique customer base, so you can learn from this and continue to make changes that have the greatest impact on your satisfaction score.

“There are lots of ways to improve CSAT you might not immediately think of. From setting SMART goals to keep teams on track to personalising customer experiences. When asking for feedback, you should also always follow up with a qualitative question, so when a customer gives you their numerical satisfaction score, ask “Why do you feel that way?” You then know the reason for the score they give and can go on to improve or maintain their experience. With an AI assistant, you can also ask for this feedback instantly, in real time, and at the end of every conversation.” ~ Abbie Heslop, Head of Customer Journey at EBI.AI

Chat window showing AI assistant asking

How to use AI Studio to collect CSAT data

Using our advanced platform, AI Studio, it’s easy to set up question and answer sequences ― we call them Flows, and add in automated questions to gather feedback.

Video shows a flow for questions about which laptop to use for gaming

Creating your own CSAT flow in AI Studio

  1. Sign up for or log in to AI Studio
  2. Go to the Content tab and check you’re on Flows
  3. Create a new flow called ‘Ask CSAT score’
  4. Add a Question: ‘How satisfied are you with the customer service support you received today?’
  5. Add Valid options 1-5
  6. Click Show options to user (so they can quickly choose a response)
  7. Hit Publish

You can go to any of your existing Flows and select Link to flow to add this CSAT request to the bottom of the conversation. Or if you want to filter your requests and only ask about CSAT at the end of any flow where the customer has given positive feedback, you’d go to the Universal content tab and add it to the flow called Positive feedback acknowledgment.

Why it makes sense to calculate your customer satisfaction score using an AI assistant

There are many benefits to using an AI assistant to manage CSAT:

  • AI assistants can handle an extraordinarily vast amount of data, so it doesn’t matter how many tens of thousands of customers you have or how many millions of transactions you handle, an AI assistant can easily cope with data at scale
  • AI assistants are incredibly easy to set up and manage if you choose the right self-serve platform ― you don’t need any technical know-how or expertise (an experienced AI provider can even supervise or do it all for you)
  • You can use just one AI assistant across multiple channels, from your website or a mobile app to social media channels and smart speakers, but your data sits in one central place for you to analyse all at once
  • Information is being added to your pool of data 24/7, since your AI assistant is always on
  • Data is organised for you; you don’t need to set up spreadsheets or sums or manual automations, all the information you need is simply presented to you on a dashboard
  • No human agent, no matter how experienced or smart they are can handle data at the speed of AI, so calculations are made faster than lightning, which saves your teams the time
  • There’s no risk of human error
  • You can control when your AI assistant does or doesn’t ask customers for their score, so you don’t get unnecessary data that might skew your results

An AI assistant makes it effortless to get a full overview of all your customer data and metrics!

Launch an AI assistant today

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How does CSAT complement Net Promoter Score (NPS) as a customer feedback metric?

While CSAT gauges immediate satisfaction, NPS measures overall loyalty. Both metrics combined offer a holistic view of customer perception, aiding in targeting specific areas for improvement and measuring long-term customer sentiment.

Can CSAT scores differ across various touchpoints in a customer journey?

Yes, CSAT scores may vary based on different touchpoints like sales interactions, customer support encounters, or post-purchase experiences. See also:

Should I focus on real-time CSAT feedback collection rather than periodic surveys?

Real-time CSAT feedback collection enables swift issue resolution and immediate service improvements. You can adapt quickly to customer preferences, prevent churn, and showcase a dedication to customer-centric operations through rapid feedback integration.

How can CSAT metrics be used to help contact teams?

CSAT metrics empower frontline teams by highlighting areas of strength and improvement. Data-driven insights from CSAT scores transforms your insights to equip teams to deliver tailored service, enhance customer satisfaction, and encourage meaningful customer relationships.