What is CSAT (Customer Satisfaction Score)? Definition & Formula

Definition

Customer Satisfaction Score (CSAT) is a metric that captures the percentage of customers who were satisfied with a specific interaction. Unlike NPS — which measures long-term loyalty — CSAT is a snapshot of a particular touchpoint: a purchase, visit, service experience, or support contact. Because it reacts quickly to changes in service quality, CSAT is widely used for operational management.

The CSAT formula

CSAT % = (Number of Satisfied Responses ÷ Total Responses) × 100

The result is a percentage between 0 and 100, never negative. The denominator includes neutral and dissatisfied responses — omitting them inflates the score.

The classical 1-5 scale classification:

Satisfied: 4-5
Neutral: 3
Dissatisfied: 1-2

Calculate your CSAT or see the step-by-step guide.

History

CSAT predates NPS and CES — variants of the satisfaction question have been in market research since the 1970s. The American Customer Satisfaction Index (ACSI), launched in 1994 at the University of Michigan's Ross School of Business, formalised the methodology for cross-industry benchmarking. The European Customer Satisfaction Index (ECSI) followed in 1999. The modern CSAT scoring conventions (4-5 = satisfied on a 1-5 scale) emerged from these academic frameworks.

The 1-5, 1-7, and 1-100 scales

Several scale conventions are in use:

1-5 (classic): 4-5 = satisfied. Most common in retail and hospitality.
1-7 (academic): 5-7 = satisfied. Used in academic CX research and some enterprise platforms.
1-100 (kazva.bg variant): 80-100 = satisfied, 50-79 = neutral, below 50 = dissatisfied. The wider range captures nuances that coarser scales miss.

All three produce a comparable CSAT percentage that can be benchmarked across organisations.

What is a good CSAT?

Above 80% is considered excellent. But like NPS, the absolute number depends on industry and channel.

Above 90% — exceptional. Rare even in high-touch luxury services.
80-90% — excellent.
70-80% — good with room to grow. Most healthy retail and hospitality organisations sit here.
60-70% — adequate.
40-60% — satisfactory; signals systemic issues.
Below 40% — critical.

Published industry baselines (ACSI, Forrester CX Index):

Retail and hospitality: 75-85%
Financial services: 70-80%
Telecommunications: 65-75%
Public services: 55-70%

CSAT vs NPS vs CES

CSAT is one of three widely-used CX metrics, each answering a different question:

CSAT — "How satisfied are you?" Measures satisfaction with a specific interaction.
NPS — "How likely are you to recommend us?" Measures long-term loyalty and brand health.
CES — "How easy was it?" Measures friction and effort.

CSAT is the most operational of the three — it reacts quickly to quality changes and can be measured at the level of a specific location, counter, or staff member.

When to use CSAT

CSAT is best for:

Evaluating specific customer touchpoints (counter service, support contact, purchase experience)
Operational management — comparing locations, shifts, staff members
Quick feedback loops where the trend matters more than the absolute number
Industries with high transaction volume and short customer journeys (retail, hospitality, public services)

Less useful for:

Measuring long-term loyalty (use NPS)
Diagnosing friction in complex processes (use CES)
Comparing across products or brands (use NPS or research panels)

Common mistakes

Excluding neutrals from the denominator. The total must include all responses, not just satisfied + dissatisfied.
Reporting average score as CSAT. Average score (e.g. 3.8 out of 5) is a different metric. True CSAT is the percentage of customers who were satisfied.
Measuring at the wrong time. CSAT regresses to the mean if the survey is sent days after the interaction. Survey within hours.
Surveying only after positive experiences. If the trigger condition is biased, the metric is biased.

Customer Satisfaction Score (CSAT) — Glossary | kazva.bg