Measuring customer feedback is essential for understanding how your business performs in the eyes of your customers. Two commonly used metrics are Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT). While they both gauge customer sentiment, they differ significantly in their approach and application.
What is Net Promoter Score (NPS)?
NPS measures how likely customers are to recommend your business to others. It’s calculated based on responses to a single question: “On a scale from 0 to 10, how likely are you to recommend us to a friend or colleague?”
Respondents fall into three categories:
- Promoters (9–10): Loyal customers likely to promote your brand.
- Passives (7–8): Satisfied but unenthusiastic customers.
- Detractors (0–6): Unhappy customers who could damage your brand reputation.
The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.
What is Customer Satisfaction Score (CSAT)?
CSAT focuses on how satisfied customers are with a specific product, service, or interaction. Customers typically respond using a scale from 1 to 5 or 1 to 10, indicating their level of satisfaction.
CSAT is useful for:
- Evaluating a recent purchase or support experience
- Monitoring satisfaction with service quality
- Gathering immediate, actionable feedback
Key Differences Between NPS and CSAT
- Focus:Â NPS gauges brand loyalty, while CSAT measures short-term satisfaction.
- Timeframe:Â NPS captures long-term sentiment, whereas CSAT reflects recent experiences.
- Survey Design:Â NPS uses a single question; CSAT may include multiple detailed queries.
When Should You Use NPS or CSAT?
Both metrics have their place in a robust customer experience strategy:
- Use NPS to track overall customer loyalty and predict business growth.
- Use CSAT to monitor satisfaction at specific touchpoints in the customer journey.
Ideally, combining both provides a well-rounded understanding of your customer experience, helping you identify trends and areas for improvement.
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