CSAT And NPS; Systems To Measure Customer Satisfaction

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The Way You Think About Your Clients Impacts The Way You Respond To Them.

-Marilyn Suttle

Customer Experience entirely depends on the satisfaction or non-satisfaction of the customer. The fulfilment of a customer is determined when one experiences the company, its customer service, or its product. Customer Satisfaction solely arrives when the consumer is happy with the overall encounter with the company. When a company fails to fulfil customer’s expectations, then it hampers the overall value of the company.Therefore it becomes very crucial to have a check on customer’s demands and expectations. This check can let your company advance their services and can make less disappointed Customers. There are several ways to measure Customer Satisfaction, two of which; explained below.

Parameters To Measure Customer Satisfaction

There are numerous systems and parameters which evaluate Customer Satisfaction and experience to get an overall rating of the brand. These methods help to expand a company uniquely, providing satisfactory services and making happy customers in return. The two metrics are:


CSAT is an acronym for Customer Satisfaction. It is a Score used by companies to estimate how satisfied a customer is with an interaction with the company or with the experience on the whole. This score lets a brand have a glimpse of its products and services to improve more according to the client’s needs.

How It Is Measured

Many rounds can be conducted to measure a CSAT but the obvious ones are surveys or questionnaires having multiple-choice questions. Based on the answered questions along with the ratings given by the Customers the overall CSAT score is computed.


CSAT (percentage) = [(No. of positive ratings)/Total no. of ratings)] * 100

For Instance: If you have 5000 customers and 3000 customers gave positive ratings the CSAT Score would be:[3000/5000]*100 = 60%

The overall CSAT score is 60%.

The criterion for fixing a positive rating varies; you can fix it according to your brand’s suitability. For example, the ratings can vary from 1-5 or 1-10 and so on.


NPS is an acronym for Net Promoter Score. It is an arrangement used by the brands that determine the intensity of Customer Satisfaction or the perspective about the company. This popular and familiar system is being used widely across the world. Moreover, its simplicity attracts more users to it. This system also highlights significant follow-ups but with its proper usage.

How It Is Measured

It is measured when customers are requested to answer a question:

“How likely you are to recommend our brand to your friends and family members?”

CUSTOMER RESPONSES: 0 1 2 3 4 5 6 7 8 9 10 0~ Not at all Likely 10~ Extremely Likely

3 Possibilities of Customer Responses:

0-7 ~ Responses in this range signifies that Customers are DETRACTORS.

7-8 ~ Responses in this range imply that Customers are PASSSIVES.

8-10 ~ Responses in this range mean that Customers are PROMOTERS.

Then after getting these ratings, the ratings are applied ahead.



For example: Out of 5000 buyers 4000 customers are promoters and 1000 are detractors the overall score would be:NPS= [4000-1000]/5000*100 = 60

NPS is a whole number and not a percentage. Therefore it is 60.

Benefits Of Using These Parameters In Your Business

There are several benefits of using these parameters in your business as:

  1. The analysis provided by these parameters helps to add value to the products and services.
  2. It also helps to find unsatisfied customers and try to change their perspectives.
  3. The feedback got by these metrics leads to the overall growth of the company.
  4. These measures also help to intact the relationship built with the customer.

The metrics like these are beneficial for an organization as it gives them opportunities for improvements and helps to move towards growth. It can take a business to a higher level that intends to have happy customers.

Way Forward

It Is The Sign Of An Absolutely Intelligent Personality To Be Moved By Statistics.

-George Bernard Shaw

Every business requires powerful statistics that analyze everything and in return give appropriate data. It is only with the parameters, systems, methodologies, and metrics that all the necessary pieces of information are being accumulated and used for the betterment of an enterprise. Therefore it becomes imperative to have these parameters that direct to make vital implications.

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Date : 13/07/2021 | Author : Priyanka Nahar

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