Top Ways to Improve CSAT Which Leads to Build Customer Loyalty

    mandavi sharma
    Mandavi Sharma

    In the digital world, the way of doing business has also shifted to virtual online spaces. It is the demand of the modern competitive business landscape. However, one thing that needs attention is the customer satisfaction score, which comes with providing a good customer experience. Here is a fact for you–
    “according to a report by Bain & Company and Harvard Business School, a rise in customer retention rates by 5% positively increases the profits by 25% to 95%.”
    Don’t you think it makes you concerned about improving your customer retention rates? We know that you understand it, so here we are to help you introduce some effective terms like CSAT, NPS, and ART to improve the customer experience. It will lead you to build customer loyalty. Keep reading and get the best insights you need!

    Understanding CSAT, NPS, and ART

    CSAT (Customer Satisfaction Score)

    The company’s customer satisfaction rating for its products and services is calculated using this widely used customer experience metric. Customer feedback surveys, which are evaluated as a percentage ranging from 0% to 100%, can be used to calculate CSAT. A few changes, like customization, customer understanding, multi-channel support, etc., might help you raise your CSAT rating.
    Formula to calculate CSAT:
    CSAT = (Number of Positive Results/Number of Respondents) x 100

    NPS (Net Promoter Score)

    It is another customer loyalty and satisfaction measurement. It is taken by asking customers how willing they are to recommend the company’s product or service to others. You can calculate it on the scale of 0 to 10. In order to improve NPS, you can provide incentive for feedback, tracking your trends, understanding your detractors and promoters, and much more.
    Formula to calculate NPS:
    NPS = % promoters – % detractors

    Customer Effort Score (CES)

    CES calculates how effortless the interaction with the firm is. It can range between 0 to 100. You can measure it as the total number of customers with easy interaction divided by the total responses.
    Formula to calculate CES:
    CES = (Number of positive results / Total Respondents) x 100

    First Contact Resolution (FCR)

    FCR is a metric to calculate the overall percentage of the customers’ queries and requests that get solved with the first contact. The companies can measure it to analyze how fast their IT team is understanding and helping their customers.
    Formula to calculate FCR:
    FCR = (Resolved incidents on first contact/Total incidents) x 100
    FCR = [(Total incidents resolved – Total reopened)/Total incidents] x 100

    Other Crucial CX KPIs

    Average Handle Time (AHT)

    AHT is Average Handle Time and is a crucial customer service metric to help businesses understand the efficiency of support teams. It is a KPI that gets popular because of the call centers. However, now it gets used by many contact centers and helps desks who are working to offer robust digital support to customers.

    Formula to calculate AHT:

    Call AHT Formula = (talk + hold + follow-up times) / total number of calls

    Email AHT Formula = (total time conversing with customers + wait times) / total number of emails

    Live Chat AHT Formula = total handle time / total number of chats

    Abandonment Rate

    Another KPI is the call abandonment rate, which calculates the percentage of callers who disconnect their calls before they get connected to an agent or a representative. If the percentage is high, it shows that there are several issues like long waiting times, poor call queuing process, or complicated IVR menus.

    Formula to calculate Abandonment Rate:

    Abandonment rate = [Number of abandoned calls/Total number of incoming calls] x 100

    Average Speed of Answer

    Average speed of answer is also a crucial KPI term. It means the time taken for the calls to answer from the moment a customer is put on a queue to the time a representative answers the call. One point to note is that it doesn’t comprise the time that is involved in routing a customer to an appropriate query or while communicating with a voice response system. However, the time spent on ringing is included.

    Formula to calculate Average speed of answer:

    ASA = Total Wait Time for Answered Calls/Total Number of Answered Calls

    Customer Lifetime Value(CLV)

    It is a metric that shows the total net profit expected by a company to generate from a customer in their entire relationship. CLV comprises initial buy, repetitive purchases, average relationship period.

    Formula to calculate CLV:

    CLV = Customer Value x Average Customer Lifespan


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    Which one is right for you and your business goals?

    All the customer satisfaction metrics play their part in increasing a company’s customer satisfaction score. You can pick any of the main metrics we mentioned above. The main focus should be your priority. For instance, NPS will help you effectively measure your customer loyalty, and CES will help you know how easy your product is to use. But, if you need a suggestion, you must include CSAT, NPS, and ART to make better decisions in improving your CX strategies.

    Developing a Comprehensive CX Strategy

    The businesses should develop a robust CX strategy to improve their relationship with their customers. Let’s have a look at the key elements of an impactful CX plan:

    • Customer insights and feedback
    • Customer journey mapping
    • Omnichannel matters
    • Anticipating customer needs
    • New product development, and more.

    Moreover, it is extremely crucial to align your customer service strategy with business goals. It helps you achieve a good customer satisfaction score and a good experience for the customers.

    There are some ways that help you align your CX strategy with business objectives. A few ones are:

    • Appreciate your ROI on customer service
    • Determining the appropriate customer KPIs for desired success
    • Setting your customer service goals that represent your business strategy
    • Getting your sales and support team on the same page
    • Motivating your collaboration between the marketing and customer service

    Further, according to Walker, it is time for some transformative changes to enhance your CX. Walker is a well-known CX leader in the market. Some best practices for making the B2B customer experience better include:

    • Work on engaging your company to build a customer-centric vision.
    • Utilize the factful data to actually understand your customers.
    • Drive your action and a fast customer-centric change.
    • Purposely design your customer experiences.

    Role of Customer Satisfaction Metrics in Building Loyalty

    All the brands or businesses get the expected success only if they focus on building their brand loyalty. In this part, the significant customer satisfaction metrics play a crucial role. They are the elements that every business needs to keep a check on their customer satisfaction score by properly calculating their customer satisfaction metrics. It can help with effective business transformations.
    Moreover, with the aid of different interviews and surveys, the organizations can enhance their targeted marketing efforts. It becomes possible with the generation of the right and focused depiction of their real customers and their expectations. Thus, they can help you in determining the client demographics with a focus on specific individuals. Here are some interesting facts for you by Salesforce, an American cloud-based software company that shared its insights on the customer experience:

    • About 57% of the customers are happy to provide their personal data in exchange for customized discounts and offers.
    • Another insight that matters for companies to improve their customer experience is that 69% of clients state that personalized attention influences their loyalty directly.
    • It has also been mentioned that 66% of consumers are willing to switch their brands if they feel that they are being treated as a number and not an individual.
    • One last point is that referrals have a 400% higher possibility of leading to an increase in sales than non-referrals.

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    Conducting Effective Customer Satisfaction Surveys

    Continuing with the research of results of Salesforce, the company mentioned that 94% of consumers are more willing to repeat their purchase after a positive service experience. Besides, around 80% of clients can easily forgive the mistake of a company if they fix it with excellent service.
    So, you can see that your customer experience is impeccable; you can make a difference and keep your clients for longer. Customer satisfaction surveys are the best choice to help you in understanding your customers better. You can also use the final results to improve the CX for your trusted and potential customers. Some ways to perform the customer satisfaction surveys include:
    Forms or comment cards
    Here are the significant steps that you can use to conduct your customer satisfaction surveys:
    1. Designing the Survey
    The first step is to purposefully design the complete surveys so that your customers know about their experience. It can lead to improving your customer satisfaction score.
    2. Analyzing Survey Results
    After creating the surveys, the companies can regularly examine the results of their surveys. It will help improve the customer experience effectively.
    3. Taking Action Based on Feedback
    When companies keep checking the feedback, they can land a decision that can benefit them. Thus, it leads to a practical action that will enhance the customer experience.
    One of the best ways to conduct customer satisfaction surveys is to focus on the details. These can be what they like the best, how helpful the product was, whether they will recommend it to others, and more. You have to be transparent with your audience, so it is also crucial to add the questions asking about the negative experiences.

    Leveraging Technology in CX Management

    Nowadays, the use of technology is unavoidable in the management of your customer satisfaction metrics. There are various CRM systems available in the market that can help you in your CX management. Many businesses are also getting the significant advantages with the utilization of AI and Chatbots. Forbes has mentioned some of these businesses who say that it helps with multi-channel experience, saves time with automation and more.

    Building a Customer-Centric Culture

    Every business must understand that they need to build a customer-centric approach to increase their customer satisfaction score. It is possible to keep a customer-first mindset, which results in a personalized experience. Organizations can use some strategies to promote a customer-centric culture in their business environment. Some examples to include in the approach include involving your customers, aligning your organization, inspiring your team, and more. All your efforts will make a significant impact on building robust customer loyalty.

    Monitoring and Adapting CX Strategies

    The one crucial aspect while maintaining your CX strategies is monitoring all the steps and results. It will help you make better decisions and even do vital transformations faster. There are various tools in the market that can help you effectively monitor your CX strategies, like HubSpot, Salesforce, Lumoa, Gemius, Sprinklr, and more.


    Ultimately, you can understand that the growth of your business relies on your customer satisfaction score. It helps you in improving the customer experience that you offer to your clients. With a good and memorable experience, the clients will be more positive about purchasing your products and services again. Thus, you need to be bull-head about the fact that the key to building customer loyalty is providing them with a great experience. And, with our written information, you get all the insights about how you can do it with the crucial customer satisfaction metrics.

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