Capterra Glossary
Customer Satisfaction (CSAT)
Customer satisfaction (CSAT) is an important business metric that allows companies to understand how well their product offerings, service offerings, and customer service satisfy customer expectations. To accurately measure their CSAT rates, businesses can use customer surveys and focus groups.
Customer surveys allow businesses to collect feedback by asking targeted questions that gauge how a customer truly feels about a product, service, and/or interactions with a customer service team.
Focus groups gather a select group of customers to openly discuss a business' offerings or marketing campaigns. This helps businesses better understand how their target customers feel about their marketing tactics, products, and services.
Measuring customer satisfaction helps businesses understand how to improve their offerings, marketing tactics, and customer service techniques, and ultimately boost customer acquisition and retention rates.
What Small and Midsize Businesses Need to Know About Customer Satisfaction (CSAT)
It's crucial for small and midsize businesses to prioritize customer satisfaction if they want to build a loyal customer base and attract new customers.
Small organizations with low CSAT rates often have a poor reputation, which can be off-putting to customers and negatively affect a business' bottom line. On the other hand, small businesses that prioritize customer satisfaction tend to build rapport with existing customers, making those customers more likely to suggest their product and service offerings to their inner circle.