Measuring customer satisfaction (CSAT) - definition & calculation: How do you determine your customer satisfaction score?

It varies depending on the industry and the specific expectations of the customers. In order to interpret the CSAT value meaningfully, you should consider it in the context of your industry and in comparison to your competitors.

Standard industry CSAT scores

The average values vary, as different industries have different customer expectations and service requirements.

Here are some general guidelines according to company orientation: Retail (e-commerce and stationary retail):

• Average CSAT: 75% to 85%
• In retail, it is common for customers to have high expectations of fast service, product availability and easy return options. A score in this area indicates that most customers are satisfied. Don't leave it at that, there is always room for improvement.

Financial services (banks, insurance companies):

• Average CSAT: 70% to 80% In the financial services industry, customers expect reliability, transparency and excellent customer service.
• The complexity of products and legal requirements in this sector - e.g. in connection with international markets, crypto - does not make it any easier, especially if you do not cater to the specific wishes of your customers.

Healthcare:

• Average CSAT: 80% to 90%
• In the healthcare sector, expectations of service quality are very high. Patients expect prompt appointments, good care and empathy. This is why the CSAT values in this sector are often higher than in others.

Telecommunications:

• Average CSAT:
• 65% to 75% The telecoms industry often struggles with lower CSAT scores, which can be due to issues such as poor customer service, technical difficulties and price dissatisfaction.

Technology and software:

• Average CSAT: 70% to 85%
• In the technology industry, CSAT values vary depending on the complexity of the product and the quality of support. Customers expect fast solutions and user-friendly products.

Travel and hospitality industry:

• Average CSAT: 80% to 90%
• In the travel and hotel industry, customer service is crucial alongside price. Customers often have high expectations in terms of comfort, friendliness and flexibility - especially when it comes to "the best time of the year", the holiday. Higher CSAT values reflect a strong customer focus.

Automobilbranche:

• Average CSAT: 70% to 85%
• In the automotive industry, both product quality and service play an important role. Customer ratings can depend heavily on the sales and service experience.

Shipping and logistics:

• Average CSAT: 70% to 80%
• Reliability and punctuality are the key factors here. A lower CSAT value can indicate problems such as late deliveries or damaged goods.

These values provide a guide; your organisation's actual CSAT scores may vary depending on the specific market, customer base and internal processes. It is also important to note that a continuous improvement programme (CIP) should be pursued. Even if your company has already achieved an above-average CSAT score.

The sources are primarily non-public reports behind a paywall of: Forrester Research, Gartner, American Customer Satisfaction Index (ACSI), Bain & Company, J.D. Power und PwC (PricewaterhouseCoopers). Excerpts from the reports can only be read publicly in part.

Benchmarks and comparative values for customer satisfaction

Many industry analyses and studies offer insights into average customer satisfaction scores. These benchmarks help you to evaluate your performance more objectively and identify areas where improvements are needed to optimise the customer experience.

How you can improve your customer satisfaction score

Improving the level of customer satisfaction requires a targeted approach. This includes regular training for your employees in Customerservice, the optimisation of the customer journey and the proactive and diplomatic processing of customer feedback. A particularly effective approach is to send out a short survey directly after an interaction with your customers in order to obtain direct feedback. This allows you to recognise and solve potential problems more quickly. In addition, targeted measures to increase service quality, such as personalised customer contact and unbureaucratic problem solving, can continuously improve your CSAT score

What is the difference between CSAT and NPS?

Net Promoter Scores (NPS) versus CSAT

The Net Promoter Score measures customer loyalty

Customer loyalty is determined by the NPS asking customers how likely they are to recommend the company to others. Intentions to act are therefore considered here.

The NPS survey is known for being extremely concise and direct. It usually consists of a main question and an optional follow-up question. Here are the typical questions:

1. Main question:

• "How likely are you to recommend [company/product/service] to a friend or colleague?"
• Response options: The answer is given on a scale from 0 (very unlikely) to 10 (very likely). Based on these answers, the respondents are categorised into three groups:
  • Promoters (9-10): Very satisfied and actively recommend.
  • passives (7-8): Satisfied but not enthusiastic Detractors (0-6):
  • Dissatisfied and might spread negative word of mouth.

2. Follow-up question (optional):

• "What is the main reason for your review?"
• This open-ended question allows customers to provide detailed comments and specific feedback, which is extremely valuable for you to understand the motivations behind the reviews.

3. Further questions (optional):

• "What could we improve to increase your rating?"
• "What aspects of our service/product do you like best?"
• These questions are sometimes added to gain even more insight into customers' specific wishes and needs.

The main question of the NPS is designed to measure overall customer satisfaction and loyalty with minimal effort. The optional follow-up questions provide additional qualitative data. These can help you to make targeted improvements.

The CSAT value provides the immediate satisfaction with a specific aspect

In contrast to the NPS, the CSAT score focuses on immediate satisfaction. The typical CSAT survey usually consists of simple and targeted questions that aim to measure customer satisfaction with a specific aspect of a product, service or interaction.

• General satisfaction:

  • "Overall, how satisfied are you with [product / service / interaction]?"
  • Response options: A rating scale, often from 1 "very dissatisfied" to 5 "very satisfied".

• Quality of service:

  • "How would you rate the quality of the service you received?"
  • Answer options: A scale as above, or a choice such as "Very poor", "Poor", "Fair", "Good", "Very good".

• Fulfilment of expectations:

  • "To what extent did [product / service / interaction] fulfil your expectations?"
  • Answer options: "Did not fulfil expectations", "Partially fulfilled expectations", "Fulfilled expectations", "Exceeded expectations".

• Helpfulness and friendliness of the staff:

  • "How satisfied were you with the friendliness and helpfulness of our staff?"
  • Answer options: Rating or text scale.

• Time efficiency:

  • "How would you rate the speed of processing your enquiry?"
  • Answer options: "Very slow", "Slow", "Reasonable", "Fast", "Very fast".

• Willingness to recommend (often combined with the NPS):

  • "How likely is it that you would recommend us to a friend or colleague?"
  • Answer options: A scale from 0 "very unlikely" to 10 "very likely".

• Open questions for feedback:

  • "Do you have any other comments or suggestions you would like to share with us?"

What are the advantages of CSAT and NPS?

The CSAT enables companies to identify specific areas for improvement, while the NPS measures customer loyalty and retention. Both metrics are fundamental tools for analysing customer behaviour.