Customer Satisfaction: Meaning, Importance & How To Boost It

Understand the meaning and importance of Customer Satisfaction (CSAT). Learn how to satisfy customers and develop a strong relationship with them.

July 11, 2023


8 Minutes

Tooba Khan

Tooba Khan

Customer Satisfaction: Meaning, Importance & How To Boost It


As the world advances towards the technological era, customers want their issues addressed and resolved in a flash. Businesses are on their toes when it comes to Customer Satisfaction. They know that the primary way to succeed in the industry is to keep your customers happy and contended.

This article explores what Customer Satisfaction (or CSAT) entails and why it should be at the top of your priority list. Also learn how to satisfy your customers and build a positive relationship with them.

Also Check: How to Convert Leads into Sales?

Meaning of Customer Satisfaction

As the name suggests, Customer Satisfaction refers to the extent of contentment a client has when dealing with a business. This includes the products purchased and/or services availed, after-sales services, customer care support, and the experience throughout their customer journey.

CSAT, meaning Customer Satisfaction, measures how contented a customer is with the performance of the business. Whether the expectations were met or exceeded, issues addressed and resolved, the quality and timely delivery of the product or service and many other factors contribute to Customer Satisfaction.

Enhance your customer satisfaction with guide to evaluate call center agent performance

Why Is It Necessary?

CSAT can bring your business immense growth so that there is maximum conversions from customers in sales funnel stages. But the opposite is also true. A dissatisfied customer can switch to your competitor in the blink of an eye and can lead to less conversions in sales funnel. Hence, it is crucial that your business maintains the highest possible level of Customer Satisfaction to retain your clients and make them your loyal customers.

Have a look at the following points to get a better insight into the importance of Customer Satisfaction in BPO (Business Process Outsourcing):

  1. Customer retention, repeat purchases and more brand loyalty
  2. Positive word-of-mouth publicity and acquisition of new customers
  3. Edge over competitors and increased revenue
  4. Trustworthy brand image and strong reputation
  5. Identification of the business strengths and weaknesses
  6. Improving the quality of the services offered.

How To Satisfy Customers?

Theres no doubting the fact that Customer Satisfaction is the key to grow and excel in todays competitive industry. However, achieving this objective can be a bit tricky. In order to keep your customers happy and contented, it is essential to measure CSAT and pinpoint their needs. This satisfying the customers will boost the the collection process in case of BPO or telecalling services.

How To Measure CSAT?

There are numerous ways to gauge CSAT or Customer Satisfaction. The most commonly utilized methods are as follows:

How to measure CSAT (Customer Satisfaction)
Image - How to measure CSAT (Customer Satisfaction)
  • Customer Satisfaction Surveys and Forms:

CSAT surveys contain questionnaires, scales of rating, polls and forms that assess the customer's satisfaction level. Feedback forms can be used to ask questions regarding the customers experience, satisfaction level, issues related to the product or service etc. These forms can be used at various stages of their customer journey so that they can provide valuable feedback regarding their experience.

  • Social Media Networks and Online Reviews:

Customers often share their customer experiences on social media platforms like Instagram, Twitter, Facebook, etc. Keep an eye on your social media handles and any website where your brand can be mentioned (like Google, Yelp, etc.). Both positive and negative feedback is equally important to improve CSAT.

  • Repeat Purchase and Customer Loyalty:

A higher amount of repeat purchases is a good indicator of Customer Satisfaction. It means that customers are highly satisfied with your brand and want to keep doing business with you. Loyal customers always return to you and spread the word about their positive customer experience (CX).

  • Customer Churn Rate:

The churn rate is a measure used to determine how many customers stop buying from your business because of being discontented. Higher the churn rate, lower Customer Satisfaction. Moreover, a dissatisfied customer is more likely to share their bad experience than a satisfied one with a good experience. Therefore, businesses must aim to minimize their churn rate for increasing sales in BPO.

  • Net Promoter Score (NPS):

NPS determines your customers loyalty and readiness to promote your products or services to their near and dear ones. It can be calculated by conducting NPS surveys. It is essential that you achieve and maintain a good Net Promoter Score to boost Customer Satisfaction.

CSAT formula

The data collected from all these tools can now be used to estimate your CSAT score. Satisfied customers give positive reviews or high ratings to your business. To calculate CSAT, divide the number of positive ratings by the total number of responses and multiply by 100.

 Customer Satisfaction Formula
Image - Customer Satisfaction Formula

Tips To Increase Customer Satisfaction

CSAT is a Key Performance Indicator (KPI) of the health and future of your organization. Whether you survive and grow or fail and diminish in the market, is determined by your customers satisfaction level. Undoubtedly, it can make or break your business.

Nonetheless, when it comes to satisfying your customers, the ball is in your court. Read on to find out how to get your CSAT soaring and stay ahead in the game.

Tips to Increase Customer Satisfaction
Image - Tips to Increase Customer Satisfaction

Listen to and understand your customers.

Leverage social media and other websites to pay special attention to their issues and resolve them at the earliest. Engaging with them helps you recognize and fulfill their expectations. Moreover, encourage them to provide feedback regarding their customer experience (CX).

Train and satisfy your employees.

Training your employees to be customer-centric includes empathy and understanding when dealing with customers. Additionally, quick thinking and prompt action are requisite for increasing Customer Satisfaction. It is also important to keep your employees happy so that they can satisfy the customers.

Minimize wait times and response times.

Customers hate waiting for their package to arrive or problems to be resolved. Ensure timely delivery and reduce call wait times as well as response times. Be pronto in not only addressing their issues but also providing solutions. Manage your staff during high call volumes, sale seasons, festivals and holidays to maintain consistent customer support.

Provide omnichannel outreach and self-service support.

Be available everywhere for your customers ease and accessibility. Omnichannel outreach support includes phone calls, SMS, chat, email, social networking sites and other platforms. In addition, provide solutions for small or recurring issues through videos, tutorials, guides, FAQs etc., so that the customer can resolve them on their own.

Build loyalty programs and communities.

Reward your loyal customers with discounts, offers, gifts, etc. This enriches their experience and increases customer Satisfaction. Also, create communities for your customers which will strengthen marketing and promotional activities and act as a platform for customer reviews, feedback and suggestions.

Dont stop improving yourself.

Keep upgrading your products and services according to the customers needs and demands. Customers are quick to switch from a stagnant brand to an up-to-date one. On the other hand, they are pleased when offered products and services tailored to their requirements.

Leverage CRM software to improve Customer Satisfaction.

Customer Relationship Management (CRM) Software is a tool used by businesses to interact and connect with their customers, which helps foster positive relationships with them. It allows easy management of client data, marketing campaigns and other information. With easily accessible data and flexible collaboration, CRM enhances the organisation's overall productivity.

Implementing these strategies and being consistent will help your business deliver a noteworthy customer experience, build a strong brand reputation and amplify Customer Satisfaction (CSAT) manifold.

Customer Satisfaction Importance

Other Important Articles:


What are the 4 types of customer satisfaction surveys?


The four types of customer satisfaction surveys are Customer Satisfaction or CSAT, Net promoter score or NPS, Product-Market Fit or PMF and Customer Effort Score or CES.

How can businesses overcome low CSAT levels?


To overcome low customer satisfaction, businesses must address and resolve their customers’ issues and take corrective measures like compensating them for any inconvenience, offering a discount, etc.

What is customer satisfaction and why is it so important?


Customer satisfaction, or CSAT, is the extent to which a customer is pleased with a business. It is important for the growth, development and success of the business.

What role does employee satisfaction play in customer satisfaction?


A happy employee will focus on the growth and profit of the organization. Thus, he will provide the best of his services to the customers, resulting in customer satisfaction.

What is the relationship between customer satisfaction and customer loyalty?


When customers are pleased with a brand, they make repeat purchases and recommend it to others. When satisfied for a long period, they ultimately become loyal customers.

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