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NPS and CSAT Score1

NPS® vs CSAT Score

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As businesses strive to enhance customer satisfaction and loyalty, they often rely on various CX metrics to measure their success. Two such important metrics are the Net Promoter Score (NPS) and the Customer Satisfaction Score (CSAT). 

Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT) are both customer satisfaction metrics that are frequently used by organizations to track customer satisfaction and loyalty. However, they differ in their approach, purpose, and application. 

Within this article, we will go over both these metrics to understand what they are and how they are calculated, and we will also compare the two to see which one is better: CSAT Vs. NPS.

Keep reading to explore the nuances and differences between NPS and CSAT.

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Difference between NPS and CSAT

What is Net Promoter Score®?

As a type of customer satisfaction survey NPS®  is a strong indicator of long-term customer loyalty. The score is tracked through NPS® surveys that usually take the form of single-question surveys that ask customers a question similar to, “How likely are you to recommend our products/services to others?”. This question follows a scale from 0-10, where 0 indicates “very unlikely,” and 10 indicates “very likely”.

How is NPS® measured?

Depending on how customers respond to your NPS® survey, they must be categorized into the following groups:

  • Promoters: Respondents who select a score of 9 or 10.
  • Passives: Respondents who select a score of 7 or 8.
  • Demoters/Detractors: Respondents who select a score between 0 and 6.

Once respondents have been categorized into their respective groups, the following formula can be used to calculate NPS®:

NPS® = % of Promoters – % of Demoters (detractors)

NPS is always represented as a value between -100 and 100. Here, a positive score indicates more promoters than demoters, and a negative score indicates more detractors than promoters.

What is a good NPS® Score?

You can use an NPS dashboard to get a clear picture of your scores, trends, and distribution chart, along with dynamic reporting. 

There are two methods using which you can interpret your NPS® score:

  • Absolute Method: According to the Absolute Method, any positive NPS® score is a good score as it means that your company has more promoters than demoters.
  • Relative Method: According to the Relative Method, what is defined as a good NPS® score will depend on your industry benchmark. If your industry benchmark is 41 and you have a score of 50, you have a good NPS® score.

Overall, NPS surveys can help you identify who are your advocates and who are at risk of churning. You can use the metric to understand where you should focus your efforts to ensure higher retention and long-term customer loyalty.

Next, let’s look at customer satisfaction scores to dig deeper into CSAT vs. NPS.

What is Customer Satisfaction or CSAT Score?

Customer Satisfaction Score, or CSAT, is a KPI used by companies to measure customer satisfaction in regard to certain touchpoints or purchases or in regard to the overall customer experience (CX). CSAT scores are strong indicators of product repurchase and customer retention and also facilitate the understanding of customer expectations and customer sentiment toward your brand. 

CSAT surveys usually take the form of single-question surveys where customers are asked a variation of the following question: “Overall, how satisfied were you with your experience with us?”. This question is followed by a five-point Likert scale, from very unsatisfied to very satisfied.

How is CSAT measured?

Once you’ve obtained the responses to your CSAT survey, the following formula can be used to calculate your CSAT score:

CSAT (%) = (Number of satisfied customers*Number of Survey Responses) x 100 

Note that in this equation, Number of satisfied customers is equal to the number of respondents that selected a score of 4 (satisfied) and 5 (very satisfied) in the survey. 

CSAT scores are always depicted as a percentage and therefore range between 0 to 100%.

What is a good CSAT Score?

Your industry benchmark for the CSAT score will determine whether or not you have a good score. Therefore, if you are a part of the Apparel industry and your CSAT benchmark is 77%, a score below 77% could be considered bad, and a score above it good.

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NPS® vs. CSAT score

NPS and CSAT Score2

CSAT and NPS® serve different purposes, and hence there is no “better metric” when comparing the two. 

→ CSAT is a better measure of user satisfaction and short-term customer loyalty. 

→ NPS® is a better measure of long-term customer loyalty. 

→ NPS focuses on a customer’s willingness to make recommendations driven by their loyalty. 

→ CSAT gauges the overall satisfaction of a customer with the brands and its products and services. 

Therefore, if you are trying to determine which of the two you should measure, it is important to first clearly define what you are trying to measure. 

→ If you want to understand how your customers feel about a specific product, service, or interaction, CSAT is better suited. 

→ However, if you want to measure customer loyalty based on their feelings toward the entire customer journey, then NPS® is better suited.

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Conclusion

Both NPS and CSAT scores are crucial metrics to measure customer loyalty and satisfaction. By gathering these data, you can gain valuable insights into customers’ needs, pain points, and preferences. 

In today’s saturated business landscape, where customer experience is the key differentiator, it s’ vital to leverage metrics like NPS and CSAT. In our blog on NPS vs. CSAT score, we highlighted how the metrics could help you enhance customer satisfaction and drive business growth.

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FAQs on Customer Satisfaction Score (CSAT)

NPS, or Net Promoter Score, helps measure customer loyalty and satisfaction. It questions customers’ likelihood of recommending a brand, product, or service to evaluate the customer’s satisfaction. 

Based on the scores, you then categorize the respondents into three segments – Promoters, Passives, and Detractors.

CSAT, or Customer Satisfaction Score, measures how satisfied the customer is with the overall experience. It helps you gauge a customer’s satisfaction with the company, its products, or its services.

The most pivotal difference between NPS® and CSAT is that both metric measures a different aspect of customer satisfaction. NPS® is indicative of long-term customer loyalty, whereas CSAT is indicative of customer satisfaction and short-term customer loyalty.

The following formula can be used to calculate your NPS® score once you’ve categorized respondents as promoters, passives, and demoters: 

NPS® = % of Promoters – % of Demoters

What is considered a good CSAT score will be defined by the industry your company is a part of. A CSAT between 75% and 85% is considered good across most industries. The score ranges from 0% to 100%. 

A good CSAT score can vary by industry, customer base, and company size. It’s important to compare your score with your industry benchmark and also internally. Comparing it with the competitor’s core and your previous score will help you determine how the changes impact customer satisfaction.

A score above 0 (zero) is considered good, while a score of 50 and above is excellent. 

NPS scores can range from -100 to +100. A higher score indicates higher customer satisfaction and vice versa. 

However, it is important to remember that a good NPS score varies by industry, customer base, and company size. A tech startup may have high NPS than a healthcare provider.

The similarity between NPS surveys and CSAT is not only that the surveys take the form of single-question surveys. Both metrics help you identify where you should focus on improvements to enhance customer experience. 

While they differ in approach, the two metric gathers insights into customers’ perception of the business, products, or services.

In the data collection method, there is no difference in CSAT vs. NPS. You can use online surveys, customer feedback forms, and reviews to gather the scores. 

However, online surveys are the most common and direct method of gathering NPS and CSAT scores. It is important to leverage multiple online platforms to reach your target audience. Using an online survey ensures that you reach enough audience to gather representative and reliable data.

You can use customer satisfaction surveys and Net Promoter Score surveys for multiple purposes. It can help you identify areas of improvement, track customer satisfaction over time, and benchmark competition. 

You can use the data to identify trends in customer feedback, prioritize areas for improvement, and make effective decisions.

As a type of customer satisfaction survey, NPS also typically uses a closed-ended question. The use of closed-ended questions only gives you a snapshot of customer satisfaction at a particular touchpoint. It does not provide a complete picture of customer satisfaction and its drivers. 

The best way to gather additional feedback is to pair the rating question with an open-ended question.

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Why Choose Voxco?

Choose Voxco to conduct your customer satisfaction surveys and enjoy the following benefits:

Omnichannel Survey Solution

Maximise your survey response rates on your NPS® and CSAT surveys using our Omnichannel Survey Software that allows you to connect with respondents on their preferred channels.

Single Integrated Platform

Feedback collected through all modes is stored on one integrated platform, making it easier to manage all your data.

Powerful Dashboards

Voxco’s dynamic dashboard depicts visual stories to reflect patterns and correlations after conducting a deep analysis of the data collected. Additionally, our live dashboards update automatically as and when responses come in.

User Experience

Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

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