Customer Satisfaction (CSAT)

What is Customer Satisfaction?

Customer satisfaction is a measure of how well a company meets or exceeds the expectations of its customers. Also known as CSAT, customer satisfaction includes a customer’s perceptions of quality, value, convenience, support, and expectations, as well as how satisfied they feel with the overall experience. A satisfied customer is one who is happy with the products or services they have received and would recommend the company to others.


  • CSAT
  • Customer happiness
  • Customer approval

How to Measure Customer Satisfaction?

Customer satisfaction metrics quantify how customers feel about their brand interaction. Collecting data on customer satisfaction involves surveys, ratings, reviews, feedback, and other methods used to gauge customer sentiment. By having a data-centric customer satisfaction strategy, your business can benefit in the following ways: uncover customer pain points, understand why customers are having bad experiences and positive interactions, learn how to develop your product or service, earn repeat business, create customer trust, and more.

Let’s explore the ways to collect data on customer satisfaction.

  • Online Surveys: Online surveys are a convenient and effective way to gather feedback from your customers. Keep a few things in mind when creating an online survey: use short surveys, make them easy to understand, and offer an incentive to complete the survey.  
  • Marketing Emails: Emailing a survey to customers after they have interacted with your company yields valuable feedback to help you improve your customer experience. Effective email surveys tend to be brief and to the point and include a call to action to complete the survey. Follow up with customers who do not respond to the survey via another email or a phone call.
  • Social Media: Most social media platforms offer options for polls and reviews, so this is an effective channel for gathering customer feedback.
  • Live Chats:  Many websites have a live chat feature that can gather information from customers, such as rating their last experience with the brand or their user experience with the website.
  • Web Intercepts: Another way to measure customer satisfaction is using web intercepts. Similar to a live chat window, visitors receive a message on their screens about your survey, and they can select whether to participate or not. This data can be used to identify areas where customers are struggling and make changes to improve the experience. 

Types of Customer Satisfaction Surveys

Customer satisfaction surveys are a tried and true way for businesses to measure and improve customer satisfaction. Surveys enable brands to gather data and feedback on products, services, branding, user experience, and customer support. This data helps companies draw conclusions and develop strategies for improving customer success and increasing customer lifetime value.

Here are the four main types of customer satisfaction surveys:

  1. Net Promoter Score (NPS) – This customer survey type uses a single survey question format asking customers to rate the likelihood of whether they would recommend a company, product, or service to someone else. 
  2. Customer Satisfaction Score (CSAT) – A CSAT survey is a customer satisfaction survey that measures how satisfied customers are with a company’s products or services. The survey usually consists of a series of questions that ask customers to rate their satisfaction level on a scale from 1 to 5, with 5 being the highest level of satisfaction. 
  3. Customer Effort Score (CES) –  A Customer Effort Score survey asks customers how much effort it took to resolve their issue, on a scale of 1-5. The CES was developed by Bruce Temkin of Forrester Research in 2010 and is a simple but effective way to measure customer satisfaction. The survey can gauge customer satisfaction with a company’s products or interactions with customer service representatives. 
  4. Product-Market Fit (PMF) – A PMF survey is a tool businesses use to measure customer satisfaction with a product or service. It can be used to gauge how well a product or service meets the needs of its users and to identify areas where improvements could be made. 

Why is CSAT Important for Businesses?

Customer satisfaction (CSAT) is a key metric for businesses to track. Why? Because happy customers are more likely to continue doing business with a company, and they are more likely to refer others. In other words, customer satisfaction means loyal customers, higher customer retention, more repeat business, expanded word-of-mouth marketing, and higher revenue.

CSAT provides benefits to both the company and the customer. For the company, it helps to identify areas where they need to improve their products or services. It also allows them to track customer satisfaction over time. For the customer, CSAT provides a way to give feedback about their experience with a product or service. Additionally, it can help brands understand how customers compare different products or services.

Customer satisfaction is a metric all areas of the business can understand and use to make improvements. In summary, these are the benefits of CSAT for businesses:

  • Get an accurate picture of customer expectations 
  • Reduce customer churn
  • Gather data on customer behavior
  • Generate customer loyalty and brand recognition
  • Improve and boost overall customer experience
  • Increase the customer lifetime value

Ways a CPQ Increases Customer Satisfaction

A CPQ, or Configure Price Quote solution, can increase customer satisfaction in many ways. Perhaps the most obvious way is by providing accurate and up-to-date pricing information faster than is possible with manual pricing system. A CPQ can also help to streamline the quoting process, making it faster and easier for customers to get price quotes, contracts, and proposals. In addition, a CPQ can help to ensure that all relevant information is captured and considered when creating a quote, which can help to avoid problems later on. It enables the automation of product bundling, discounting, and approval workflows. Overall, a CPQ can help to make the quoting process more efficient and effective, leading to happier customers.

Here are the ways a CPQ increases customer satisfaction:

Streamlines the Sales Process for Faster Quotes

A CPQ can streamline the sales process by automating essential tasks and eliminating errors. This can save time and improve efficiency while ensuring accuracy.

Some of the ways a CPQ can streamline the sales process and improve customer satisfaction include:

  • Configuring products to meet customer requirements
  • Generating accurate quotes faster
  • Automatically calculating pricing
  • Creating contracts
  • Managing approvals

A CPQ can help sales teams close deals faster and improve customer satisfaction by automating these tasks.

Maximizes Quote Accuracy

If your quotes are inaccurate, it can cost you both time and money and lead to customer dissatisfaction. A CPQ (configure, price, quote) system can help you create accurate quotes quickly and easily. In addition, by automating the quoting process, a CPQ can help you avoid errors and omissions that can lead to lost sales.

In addition to accuracy, a CPQ generates quotes quickly so sales reps can respond to buyers faster. If it takes too long to generate a quote or your quotes do not include all the information customers need, they will likely take their business elsewhere. A CPQ system can also help improve customer satisfaction by providing a self-service portal where customers can get the quotes they need quickly and easily. In addition, a CPQ can provide real-time pricing so that customers always know how much their purchase will cost.

Builds Better Customer Relationships

CPQ can help sales reps upsell and cross-sell products and services by suggesting add-ons and extras that may interest the customer. By making it easier for sales reps to create accurate quotes and recommend additional products and services, CPQ can help companies to build stronger relationships with their customers. Customers will appreciate the faster, more efficient quoting process and the personalized recommendations for products and services. In turn, this leads to increased sales and customer satisfaction.

Competitive Pricing

By streamlining and automating the pricing process, CPQ software can help businesses save time and money while ensuring that they are always able to offer their customers the best possible prices. In addition, CPQ software can help businesses stay ahead of their competition by enabling them to quickly and easily adjust their prices in response to changes in the market.

Professional Personalized Quotes

One of the keys to success in sales is creating personalized quotes that speak to your customer’s specific needs. CPQ software helps sales professionals create customized professional-looking quotes in minutes without starting from scratch each time. CPQ provides a database of your company’s products and pricing, so you can quickly find the right product for each customer. It also includes tools to help you customize each quote, so you can include only the features and options relevant to the customer.

People Also Ask

What are the 3 C’s of customer satisfaction?

Following the 3 C’s of customer satisfaction helps companies produce a positive customer experience. These are:
1. Capacity – This refers to a company’s ability to meet customer demand. If a company falls short in meeting customer demand, it will lead to dissatisfaction.

2. Consistency – Customers will not have a good experience with your brand and will be dissatisfied if they receive inconsistent products or services.

3. Communication – Keeping customers informed and updated is essential to creating a positive customer experience and fostering high satisfaction.

What are the elements of customer satisfaction?

The main elements of customer satisfaction are:
1. Being aware of the needs of customers and what they expect from your business
2. Create positive interactions with salespeople and customer support 
3. Empathize with your customers
4. Create and help with solutions to their problems
5. Clarify the situation with the customer
6. Always follow up with customers

What is good customer satisfaction?

Customer satisfaction indicates how well a company or product meets customer expectations. Good customer satisfaction means that customers are happy with the products or services they’ve received and are likely to continue using them in the future.

What happens if customers are dissatisfied?

Customers may take their business elsewhere if they are dissatisfied with a business. This can lead to a loss of revenue for the company. In fact, NewVoiceMedia reported that in 2018 businesses lose $75 billion annually due to poor customer service. Additionally, unhappy customers may spread negative word-of-mouth about the company, damaging its reputation and bottom line further. Therefore, brands need to do everything they can to ensure customer satisfaction. This may include offering refunds or exchanges, providing excellent customer service, and addressing any issues promptly. Businesses can minimize the damage caused by dissatisfied customers by taking these steps.

When customers are unhappy, it helps to quickly respond to their concerns by:

* Immediately asking for and acting on the feedback you receive 
* Quickly and thoroughly responding to questions and needs
* Responding to negative feedback in a constructive manner