Maximizing Customer Satisfaction: Lecture 2

How is customer satisfaction measured?

At every touchpoint a customer has with the company, there's an opportunity for the company to increase or decrease customer satisfaction.

Positive interactions will result in increases in happiness and negative interactions will result in decreases in happines.

So far, we've just talked about how the customer feels. But how do you capture this metric into something you can put onto a chart and work to improve?

To capture customer satisfaction into a business metric, you need to deploy customer satisfaction surveys like CSAT and NPS.

Understanding CSAT

CSAT is short for Customer Satisfaction score. It's measured by sending your customers a feedback survey and asking a variation of a question like "How would you rate your satisfaction with the service you received?"

Customer repsonses are tallied up and an average is calculated, giving a final percentage score between 0% and 100%.

Understanding NPS

NPS stands for Net Promotor Score. It's a little different than CSAT as it measures customer loyalty instead of satisafaction. Although this is a somewhat different metric, it's still a good proxy to satisfaction.

To measure NPS, customer is sent a feedback survey asking "How likely is it that you would recommend our company/Product to a friend or colleague?"

They're given a 10 point scale to answer in, and the scores are tallied up as such:

  • 0 - 6: Detractors
  • 7 - 8: Passives
  • 9 - 10: Promoters

Finally, we're the NPS score is calculated as follows:

(Number of Promoters — Number of Detractors) / (Number of Responses) x 100

CSAT vs NPS

CSAT captures the feeling of the customer "in this moment" whereas NPS captures the overall strength of loyalty of the customer. They're both valuable and guaging the overall satisfaction of your customers.



Continue to Lecture 3 →