Understanding customer satisfaction scores
Customer satisfaction scores like NPS and CSAT get thrown around a lot by companies, but what do they actually mean? The alphabet soup of abbreviations can sound a bit technical and confusing, but we break it down it in a simple-to-understand way.
Net Promoter Score
The NPS is a success metric used by organizations across the globe and across industries to measure a consumer’s willingness to recommend the services or company being reviewed. It's generated by asking customers a simple question: “On a scale of 0-10, how likely is it that you would recommend Service X or Company X to a trusted friend or colleague?” The score itself is then calculated by taking the % of Promoters (those who would recommend) and subtract the percentage of Detractors (those who would not). The score can range from -100% to 100%.
Customer Effort Score
CES is used to determine how much effort was required from the customer during the transaction. In the context of mortgages and home financing, this metric generally helps gauge how easy they found the financing process. CES can also be used to help determine where a customer is having difficulty during a process, and thus where things could be improved.
Customer Loyalty Score
A customer’s experience will go a long way toward determining if they’d want to work with the same company again. This metric is generated by asking “Would you work with Company X again?”, and helps provide insights into customer retention.
Customer Satisfaction Score
A very well-known metric in marketing, CSAT is used to determine overall customer satisfaction with a product or service. It is generated by asking customers the survey question “How satisfied were you?”, and allows them to rank their answers 1-5, 5 being Very Satisfied and 1 being Very Dissatisfied.