Exploring Insights: What is CSAT & NPS?

Edvin Cernov
May 13, 2024
5 min read

Updated: Apr 12

In today’s competitive business landscape, understanding your customers is key to success. Two critical metrics, Customer Satisfaction (CSAT) and Net Promoter Score (NPS), offer deep insights into the customer experience (CX). These tools help companies measure satisfaction, loyalty, and advocacy, guiding them toward meaningful improvements. Whether you’re refining products or enhancing service, CSAT and NPS can drive growth by revealing what your customers truly think. In this guide, we’ll explore what CSAT and NPS are, how they work, and why they’re essential for modern businesses. Let’s get started.

Why CSAT and NPS Matter for Your Business

Metrics like CSAT and NPS are more than just numbers, they’re windows into your customers’ minds. CSAT measures immediate satisfaction after an interaction, while NPS gauges long-term loyalty and the likelihood of recommendations. Together, they provide a comprehensive view of your CX, helping you identify strengths and weaknesses. For example, a low CSAT score might highlight a service bottleneck, while a high NPS indicates strong brand advocates. By leveraging these insights, businesses can boost retention, improve offerings, and ultimately drive revenue. In 2024, companies using CSAT and NPS effectively saw a 15% increase in customer retention, according to Forrester. Ready to see how these metrics work?

What Is CSAT? A Deep Dive into Customer Satisfaction

Customer Satisfaction (CSAT) measures how happy customers are with a specific product, service, or interaction. It’s typically gathered through a simple survey question like, “How satisfied are you with your experience?” Customers rate their satisfaction on a scale, often from 1 (very dissatisfied) to 5 (very satisfied). The average score gives businesses a clear picture of performance.

Analyzing CSAT helps pinpoint areas for improvement. For instance, if a company notices consistently low scores in delivery speed, they can streamline logistics to boost satisfaction. A retail brand used CSAT to discover that 30% of customers were unhappy with checkout wait times, leading to a self-checkout system that improved scores by 20%. CSAT is especially useful for immediate feedback, making it a go-to metric for assessing specific touchpoints like support calls or product purchases. Want to enhance your customer service? Learn how to improve CX through better support.

What Is NPS? Understanding Customer Loyalty

Net Promoter Score (NPS) focuses on customer loyalty and advocacy, measuring how likely customers are to recommend your brand. It’s based on one key question: “How likely are you to recommend us to a friend or colleague?” Respondents rate this on a scale from 0 to 10. Here’s how the scores break down:

Promoters (9 to 10): Loyal fans who will spread the word.
Passives (7 to 8): Satisfied but not enthusiastic.
Detractors (0 to 6): Unhappy customers who might harm your reputation.

To calculate NPS, subtract the percentage of detractors from the percentage of promoters. For example, if 50% of respondents are promoters and 20% are detractors, your NPS is 30. A positive score is good, while a score above 50 is excellent. A SaaS company raised its NPS from 10 to 45 by addressing detractor feedback on slow support response times, leading to a 25% increase in referrals. NPS is ideal for tracking long-term loyalty and identifying brand advocates. Curious about building loyalty? Explore strategies to create strong brand advocates.

CSAT vs NPS: How They Work Together

While CSAT and NPS measure different aspects of CX, they’re most powerful when used together. Here’s how they complement each other:

Immediate vs Long-Term Insights: CSAT captures instant feedback after an interaction, like a support call, while NPS reveals long-term loyalty trends over time.
Granular vs Big Picture: CSAT drills into specific touchpoints (e.g., product quality), while NPS offers a holistic view of overall brand sentiment.
Actionable Improvements: Low CSAT scores can highlight specific pain points, like slow service, while a declining NPS might signal broader issues, such as a lack of trust.

A hospitality firm used both metrics to transform its CX. After noticing a CSAT drop in room cleanliness (scoring 2.5/5), they revamped housekeeping protocols. At the same time, their NPS of 15 revealed a loyalty gap, prompting a loyalty program that boosted the score to 40. By combining CSAT and NPS, they improved customer retention by 18%. This dual approach helps businesses enhance relationships and drive growth. For more on CX strategies, check out key trends shaping customer experience in 2025.

How to Use CSAT and NPS to Improve Your Business

Leveraging CSAT and NPS effectively can transform your CX. Here are three actionable steps to get started:

1. Collect Feedback Regularly

Gather CSAT data after key interactions, like purchases or support calls, using short surveys. For NPS, send quarterly surveys to track loyalty trends. Tools like SurveyMonkey or Qualtrics make this easy. A retail brand increased response rates by 40% by keeping surveys under 2 minutes.

2. Analyze and Prioritize Insights

Break down CSAT scores by touchpoint to identify weak spots, such as slow delivery. For NPS, focus on detractor feedback to address root causes. A tech company found 60% of detractors cited poor onboarding, leading to a new training program that raised NPS by 20 points.

3. Act and Follow Up

Use insights to make changes, then close the loop with customers. If CSAT reveals slow support, train agents to respond faster. After improving, follow up with customers to show you’ve listened. A SaaS firm saw 15% higher retention after addressing CSAT feedback on billing issues. Want to optimize your support? Learn about AI tools for faster customer service.

Start measuring CSAT and NPS today. Download Our Free CX Metrics Guide to track and improve your scores.

Frequently Asked Questions About CSAT and NPS

What is the Difference Between CSAT and NPS?

CSAT measures immediate satisfaction with a specific interaction, like a purchase, while NPS gauges long-term loyalty by asking how likely customers are to recommend your brand. Both are essential for a full CX picture.

How Often Should You Measure CSAT and NPS?

Measure CSAT after key touchpoints, like support calls, and NPS quarterly to track trends. Regular feedback ensures you catch issues early. A hospitality brand improved its NPS by 25 points with consistent quarterly surveys.

Can CSAT and NPS Apply to Any Industry?

Yes, from e-commerce to hospitality, these metrics work across industries. For example, an e-commerce company used CSAT to improve checkout speed, while a hotel chain used NPS to boost loyalty. Explore industry-specific applications in e-commerce CX strategies or hospitality CX insights.

Elevate Your CX with rethinkCX

CSAT and NPS are powerful tools for understanding and improving your customer experience. By measuring satisfaction and loyalty, you can identify pain points, enhance relationships, and drive growth. Ready to take your CX to the next level? At RethinkCX, we help businesses implement effective CX strategies using metrics like CSAT and NPS. Contact us to get started, or dive deeper into why CX metrics matter for growth.