Customer Satisfaction Metric 1: NPS
Net promoter score (NPS) helps you understand how likely customers are to recommend their products or services to others. It is based on a single survey question that asks customers to rate, on a scale of 0 to 10, how likely they are to recommend the company to friends or colleagues.
Based on their responses, customers are categorized into three groups:
- Promoters (score 9-10): These are highly satisfied customers who are likely to recommend the company to others and contribute positively to its growth.
- Passives (score 7-8): These customers are satisfied but may not actively promote the company. They are neutral and may be swayed by competitors or other factors.
- Detractors (score 0-6): These are unsatisfied customers who may spread negative word-of-mouth and can potentially harm the company's reputation.
Here's the formula for calculating NPS:
NPS = % of Promoters - % of Detractors
The score can range from -100 to +100, with higher scores indicating a higher proportion of very satisfied customers – aka loyalists.
Customer Satisfaction Metric 2: CSAT
Customer satisfaction score (CSAT) is a metric used by businesses to measure the level of satisfaction that customers have with a specific product, service, or interaction. It provides insights into how well a company is meeting customer expectations and delivering on its promises.
A CSAT survey asks the question "How satisfied are you with [product/service/interaction]?" with response options ranging from "Very satisfied" to "Very dissatisfied." The scale used in CSAT surveys varies but commonly ranges from 1 to 5 or 1 to 10, with higher numbers indicating higher satisfaction levels.
Here is the formula to calculate CSAT:
CSAT (%) = (Number of satisfied customers / Total number of survey responses) x 100
CSAT highlights specific interactions or aspects of products/services that lead to lower satisfaction scores so you can make adjustments and improvements.
Customer Satisfaction Metric 3: CES
CES – which stands for customer effort score – is used to measure the ease of experience customers have when interacting with a company or using its products or services. The fundamental idea behind CES is that reducing customer effort leads to higher satisfaction and loyalty.
To measure CES, launch a survey that asks customers to rate their agreement with statements related to their effort levels to complete a task or resolve an issue. For example, customers may be asked to respond to statements like "The company made it easy for me to resolve my issue," on a scale from strongly disagree to strongly agree.
Again, the scale can vary, but it typically ranges from strongly disagree to strongly agree or from 1 to 5. Then, you can calculate CES as:
The average CES = Total aggregated score provided by customers / Total number of survey responses