CSAT Scores Impact On Businesses


Jan 15 · 3 min read

CSAT Scores Impact On Businesses

CSAT is an experience metric that measures customer satisfaction with a product/interaction. Several companies utilize this metric to assess their performance in a specific market. If the score is high, businesses tend to do well, and market acceptance of a particular product/service is affirmative.

Customer satisfaction is crucial for business growth; it helps in retention; in fact, a 5% increase in retention can boost profitability by 25% to 95%. CSAT scores play a crucial part in achieving this. Since this metric propagates high value, it has taken center stage amongst businesses across industries. In the last decade, marketers have spent resources on providing a personalized experience to customers; now, they are matching that understanding with actions that drive engagement and retention. The end goal of this process is to own the end-to-end customer experience by 2021.

With such a goal in mind, CSAT plays a vital role in providing data. So, let’s dive deeper to understand the potential of this metric and how it impacts businesses.

How is the CSAT metric derived?

The process of determining a CSAT score is quite simple. Businesses email their existing customers a survey to fill that contains a request, asking customers to rate their product/service satisfaction from a scale of 1 to 5. The range showcases how effective the product and service have been with customers. Apart from this, the survey contains an open-ended question to understand the rationale behind the rating; it helps in identifying gaps and rectifying processes.

This process is easy to implement, and all businesses can execute this to enhance customer satisfaction. The metric is cumulative of all responses; it is in the form of a percentage. When a company receives scores higher than 85%, it is perceived to have good CSAT scores.

Here are a few insights to be derived from high scores:

  1. Touchpoints are performing well

  2. Buyer’s journey is optimized

  3. Customer loyalty has gone up

  4. Product-market fit is perfect

  5. Market advantage (Customers prefer your product over competitors)

Now that we know how CSAT is derived and the insights of high scores, let’s take a look at its impact on a business if they turn out to be below par. Scores below 85% tend to suggest that businesses need to improve their process and delivery.

Here is what low CSAT scores indicate:

1) Disconnect from customers:

Low CSAT scores usually suggest that the business has a disconnect from its customers. It signals that the company’s message doesn’t resonate with the customer; they have failed to consider the customer needs and have not capitalized on current data. This scenario impacts product-market fit and, eventually, the brand.

2) A lapse in technology adoption:

When CSAT scores indicate that the engagement point or delivery is the reason for low ratings, it means that the current technology utilized for engagement/delivery has failed.

A lapse in technology adoption creates a void through which customers detract. Triggering a ripple effect, forcing companies to invest heavily in acquiring new customers rather than maintaining existing ones. This causes massive expenditure and eventually stagnates growth.

It’s crucial for businesses to adopt future technologies to service customers better.

3) Lack of innovation:

The third factor that CSAT scores can indicate is a lapse of change. It shows that the product no longer addresses a current market requirement and that it has failed to adapt to its surroundings. Customers expect constant innovation when that doesn’t happen; they are left with bad experiences and eventually detract.


CSAT scores reflect the level of service a business provides; it acts as an indicator showcasing the health of the company from a customer perspective. Maintaining a good CSAT score is robust, and companies have to adapt according to the market conditions to deliver exceptional experiences. If not, customers will seek out competitors.

Talk to us to know how VIVA, a multilingual voice AI platform can improve your business CSAT scores