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CSAT stands for customer satisfaction or, when referred to as a key performance indicator, customer satisfaction score. As a KPI, CSAT measures customer satisfaction by inviting customers to respond to a question regarding an experience they have had with your product or company.
A CSAT measures customer satisfaction by inviting customers to respond to a question such as, “How would you rate your overall satisfaction with the [product or service] you received?” Customers respond on a scale of 1 to 5, with 4 indicating a satisfied customer and 5 indicating a very satisfied customer. Scores of 3 are neutral and scores of 2 or 1 represent unsatisfied and very unsatisfied customers. CSAT calculations total up scores of 4 and 5 to measure what percentage of customers are either satisfied or very satisfied. Research has shown that scores in this range correlate highly with customer retention.