NPS and CSAT: Differences and How to Use Them to Assess Customer Satisfaction?
Learn the difference between NPS and CSAT, how each metric works, and how combining the two helps you deal with different customer groups.
When evaluating customer service, it is important to have indicators to validate the analyses and confirm the forecasts. A strategic way to do this is to combine complementary metrics to analyze them together, such as NPS and CSAT.
These two indicators can guide analyses related to engagement, happiness, or loyalty of consumers with a business.
After all, if a customer approved the shopping experience to the point of recommending the brand, their satisfaction also tends to be positive. But if the relationship at the time was good but not enchanted, the client may not make a recommendation to someone else.
And don't underestimate the power of a recommendation. 90% of people are more likely to trust and buy from a brand recommended by a friend. In results, word-of-mouth marketing generates 5 times more sales that a media outlet pays to promote an offer.
Do you want to better understand the difference between NPS and CSAT and how these indicators can be associated with sales and service process evaluations? Read on and check it out!
What's the difference between NPS and CSAT?
NPS and CSAT are two of customer service indicators well known and used by companies when evaluating the quality of the processes offered.
However, each one evaluates an aspect and they are complementary, that is, the results of one help to better understand the other. But it's important to know the difference between NPS and CSAT.
Net Promoter Score (NPS)
O Net Promoter Score or NPS it is an indicator that assesses customer loyalty. Generally, the question follows the following model and may have several variations:”From 0 to 10, how likely are you to refer the company to a relative or friend?”.
This type of assessment is very common in e-Commerces and is placed on the final screen where the purchase confirmation appears. Thus, the company is able to know the number of detractors (score from 0 to 6), neutral (score 7 and 8) and brand promoters (score 9 and 10).
Even though it is a metric more associated with the sales part, the question can be adapted to measure customer loyalty in the post-sales period, for example.
How to calculate NPS
The companies that use automated systems they are able to obtain the NPS result automatically, since it is a feature offered by most software.
Detailing the way to calculate the NPS, the total number of promoting clients must be subtracted by the total number of detracting clients and then divided by the total number of evaluations for the analyzed period. The result can be multiplied by 100 to obtain the data as a percentage.
NPS = number of promoters — number of detractors ÷ total number of respondents for the period.
Customer Satisfaction Score (CSAT)
Already Customer Satisfaction Score or CSAT It is the customer satisfaction score with the customer service provided by the company.
The CSAT search is applied at the end of the calls and the response pattern can be numerical as in the NPS, but also use resources such as emojis, stars, dots.
For example: On a scale of 1 to 5 stars, what is your level of satisfaction with the support service you just received? The CSAT question is often accompanied by a Supplementary question with a space for the customer to justify the grade, punctuating a complaint or improvement.
The information extracted from this session can be very useful to improve service and verify, for example, how engaged the customer is, if they are a frequent customer or if they are the first purchase. This data check is easier when the company works with a service software.
How to calculate the CSAT
The CSAT indicator can also be obtained automatically by the service system, but the calculation dynamics are as follows:
CSAT = number of satisfied customers ÷ total number of people who completed the survey x 100.
The CSAT indicator is also used as a percentage, so the result of the division is multiplied by 100. It is considered a good result when the CSAT is above 70%.
Also read: What to do to increase CSAT? 5 actions to improve service.
How to combine NPS and CSAT methodologies?
Combining NPS and CSAT methodologies, it is possible to analyze and separate clients into groups and define how each one will be approached and whether it is worth investing in actions for them.
This is because there are a number of clients who disliked the company and the experience and show no intention of referring the business. Trying to convince him otherwise would be, as is popularly said,”Punch at the tip of a knife”.
An important point for this First group is to keep your information in the system, to identify you if one of them returns to the future.
Um Second group includes customers who are even satisfied but do not show proximity or loyalty to the brand, since they buy from the competitor if they see advantages.
In these, it is worth investing in a good relationship, both by offering new offers and loyalty benefits and by following up more closely after sales.
To be assertive in these actions, it is necessary to be Attentive to the feedbacks in which customers explain their needs, changes in market trends, and also what the competition is doing.
Another group that can be highlighted when analyzing NPS and CSAT together are customers who were loyal to the brand but experienced situations such as poor service, generating a loss of credibility.
These customers deserve special attention so as not to become permanent detractors of the brand. Therefore, it is important for the company to be proactive and to receive feedback as soon as possible to circumvent the situation.
Contrary to what is often said, what is good can improve. The group of satisfied and engaged customers expect to always receive a high quality standard And also innovations to continue assigning a positive value to the brand.
Check out the tips in the article 'How to innovate in customer service? 5 tips for businesses' and keep your company at a high level.
Improve your company's standard of service
The strategies created based on the joint analysis of NPS and CSAT are valuable for maintaining a solid and loyal customer base to the brand, in addition to paving the way for the arrival of new consumers.
To do this, the service team needs to be prepared and well trained to deal with attention and empathy in all types of situations.
Does your company have well-defined processes? Does the team know how to put them into practice? A Cloud Humans helps your business to have a humanized customer service, ensuring better results in the main metrics.
Discover the cases of three of our clients and see how they managed to evolve in the results of the service metrics.
Talk to our experts who are available to present our solution and show how much it can help you achieve your business objectives.