3 Customer Satisfaction Metrics You Need To Know

Published on:
Thu Sep 15 2022
Customer Experience

Customer satisfaction is a key metric for measuring business success. The more satisfied customers are, the happier they'll be with your product or service, which will lead them to make repeat purchases and recommend your services to others.

Customer satisfaction is often a goal for businesses, but it is hard to measure.

Customer satisfaction metrics can help you measure customer satisfaction. Also, measuring customer satisfaction can provide your company with invaluable information about what your customers think about your products/services. Using this information you can improve your customer experience, which can directly increase your revenue.

Three different types of customer satisfaction metrics measure customer satisfaction towards your products and services

1. Net Promoter Score (NPS)

The first customer satisfaction metric is the Net Promoter Score (NPS) which is a measure of customer loyalty based on the number of promoters and detractors.

The NPS metric question is as - “ On a scale of 0 to 10, how likely a customer is to recommend a business to others ”.

NPS also segments customer responses into three categories - detractors, passives, and promoters:-

  • Detractor ( score 0-6 ):- A detractor is a customer who did not like your product or services.
  • Passive ( score 7-8 ):- A passive is a customer who is neither satisfied nor disappointed with your product/service.
  • Promoter ( score 9-10 ):- A promoter is a customer who is most likely to recommend your product/service to others.

NPS ( Net Promoter Score ) metric is calculated by subtracting the percentage of detractors from the percentage of promoters. A score of zero means you have an equal number of promoters and detractors, while a positive score means your customer's experience is positive.

NPS = { ( Total percentage of promoters – Total percentage of detractors) }

2. Customer Satisfaction Score (CSAT)

CSAT stands for Customer Satisfaction Score, which is a measure of customer satisfaction. It measures whether customers are satisfied or dissatisfied with a company’s product or service.

A rating scale is used in a CSAT question to provide customers with a variety of possible survey responses. Although each business can set its own range, the most popular format is 1 to 5:-

1- Very Dissatisfied

2- Dissatisfied

3- Neutral

4- Satisfied

5- Very satisfied

To calculate your CSAT score, you can follow the following formula:-

CSAT = (Number of satisfied customers (4 and 5) / Number of survey responses) x 100

A low score shows that you need to improve the quality of your products/ services, while a high score suggests that you are doing a fantastic job.

CSAT is a great customer satisfaction metric for keeping track of all services/products and replacing anything that doesn’t work for customers. It can provide insight into when and where your business might be in danger of losing customers. In a similar way, it can reveal chances to improve customer experiences.

CSAT is often used as an indicator for measuring team performance because it showcases how well your team members are doing their job from the customer's perspective.

3. Customer Retention Rate (CRR)

Customer retention rate (CRR) is a measure of how well a company retains its customers compared to the industry average.

CRR = { ( Number of customers at the end of the period - Number of new customers gained during the period ) / ( Number of customers at the start of the period ) } * 100%

As an example, let's say you have 130 customers at the start of a month. In that period you lose 9 customers and gain 23 new customers.

So, CRR = { ( 144 - 23 ) / 130 } * 100

CRR = 93%

CRR is also one of the most important customer satisfaction metrics for a business because it tells you how well your business is doing at retaining your current customer base, which directly helps you improve customer loyalty and grow sales over time.

If you have a high retention rate, then that means that your business is heading in the right direction—maybe it's providing excellent service or offering high-quality products at competitive prices.


Customer satisfaction metrics definitely have a big impact on your business. With so many different metrics available to measure customer satisfaction, it can be overwhelming to know which one to use.

The best way to decide which customer satisfaction metric is right for your business is by analyzing its goals and objectives first. Once those are clear in your mind then you can begin figuring out what metrics will help you achieve those goals.

With the help of the above-mentioned customer satisfaction metrics, you can easily evaluate the current state of your customers’ experiences, how to avoid any unhappiness, and how to maintain the customers’ loyalty.

If you are looking to measure and optimize personalized customer experiences, then Dropthought can certainly help!

Dropthought is a user-friendly, omnichannel, and real-time customer experience management platform. We empower companies in different verticals to create delightful experiences for customers across their journey. Get detailed analysis and insights from data to exactly know what your customers think and what actions you need to take to delight them.

With a dedicated customer success team, we would ensure that you are optimizing your Customer Experience programs and strategies to create great experiences!

Learn more by simply clicking here.