{"id":31,"date":"2022-05-06T11:15:06","date_gmt":"2022-05-06T11:15:06","guid":{"rendered":"https:\/\/justfeedback.com\/blog\/?p=31"},"modified":"2023-11-15T15:25:27","modified_gmt":"2023-11-15T15:25:27","slug":"nps-vs-csat","status":"publish","type":"post","link":"https:\/\/justfeedback.com\/blog\/nps-vs-csat\/","title":{"rendered":"NPS vs CSAT: Why are both so important? (Complete Guide)"},"content":{"rendered":"<p>Ask any business owner and they&#8217;ll tell you how crucial customer loyalty or satisfaction is to their business effectiveness.<\/p>\n<p>Some may even develop business operations around their customers \u2014 an end-user-centric approach that fosters even better business-customer relationships.<\/p>\n<p>However, measuring the impact of such operations is an entirely different (and challenging) task. You see, the more metrics you involve in business performance measurement, the more overwhelming the process becomes.<\/p>\n<p>Despite the complexity, businesses should aim to measure the right metrics to measure or predict market success precisely. And none can do a better job than metrics like Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT).<\/p>\n<p>Which of the two metrics should you use? In this complete guide to CSAT vs. NPS, we answer the crucial &#8220;WHAT, HOW, WHEN, and WHY.&#8221;<\/p>\n<p>Let&#8217;s get started!<\/p>\n<table class=\"block-table block-style1 uk-table uk-table-divider\">\n<thead>\n<tr>\n<th>Table of contents<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item1\" uk-scroll=\"offset:50;\">What is NPS (Net Promoter Score)?<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item2\" uk-scroll=\"offset:50;\">What is CSAT (Customer Satisfaction Score)?<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item3\" uk-scroll=\"offset:50;\">How is NPS calculated?<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item4\" uk-scroll=\"offset:50;\">How is CSAT calculated?<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item5\" uk-scroll=\"offset:50;\">When should you measure NPS?<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item6\" uk-scroll=\"offset:50;\">When should you measure CSAT?<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item7\" uk-scroll=\"offset:50;\">Why should you use NPS? (Advantages)<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item8\" uk-scroll=\"offset:50;\">Why should you NOT use NPS? (Limitations)<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item9\" uk-scroll=\"offset:50;\">Why should you use CSAT? (Advantages)<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item10\" uk-scroll=\"offset:50;\">Why should you NOT use CSAT? (Limitations)<\/a><\/td>\n<\/tr>\n<tr>\n<td><i class=\"fad fa-caret-right\"><\/i><a href=\"#item11\" uk-scroll=\"offset:50;\">Which one should you use? NPS or CSAT?<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"block-aida block-style1\" id=\"cta-aida-top\">\n<div class=\"block-aida-core\">\n<div class=\"block-body\">\n<p class=\"block-title\">Collect feedback with <strong>JustFeedback<\/strong><\/p>\n<div class=\"block-text\">\n<p>JustFeedback helps your business increase profits and reduce risk by improving your customer experience<\/p>\n<\/div>\n<div class=\"block-buttons\"><button class=\"button button-link button-s button-v1 button-cart border-radius-5 margin-0\" data-upify-event=\"button-cta-trial-aida\"><a href=\"https:\/\/app.justfeedback.com\/register\">Start For Free<\/a><\/button><\/div>\n<\/div>\n<div class=\"block-footer\">\n<div class=\"block-text\">\n<p class=\"block-flex block-flex-center flex-row-gap-5 flex-column-gap-20 w480-block-flex-column\"><span class=\"hidden-display-OFF\"><i class=\"fal fa-check\"><\/i>Setup in seconds<\/span><span><i class=\"fal fa-check\"><\/i>No credit card required<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 id=\"item1\">What is NPS (Net Promoter Score)?<\/h2>\n<p>NPS stands for Net Promoter Score. It is a widely popular growth indicator that allows businesses to measure customer loyalty by asking specific questions (NPS Survey).<\/p>\n<p>The question or survey gives companies an idea of how likely customers will recommend their brand, products, or services to others.<\/p>\n<p>Net Promoter Score surveys tend to generate responses against questions like \u2014 &#8220;On a scale of 0-10, how likely are you to recommend our product\/service\/company to a friend or colleague?&#8221;<\/p>\n<h2 id=\"item2\">What is CSAT (Customer Satisfaction Score)?<\/h2>\n<p>CSAT stands for Customer Satisfaction Score. As the name implies, it is a CX metric that specifically measures customer satisfaction levels.<\/p>\n<p>CSAT or customer satisfaction measurement surveys contain questions that help measure how happy or satisfied customers are with a certain aspect of your products or services.<\/p>\n<p>In other words, you can use CSAT surveys to optimize almost any customer touchpoint.<\/p>\n<p>Customer Satisfaction Score surveys tend to generate responses against questions like \u2014 &#8220;How would you rate your overall satisfaction with the service you received?&#8221;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/justfeedback.com\/blog\/wp-content\/uploads\/2023\/11\/30539292.jpg\" alt=\"csat vs nps, customer experience, customer effort score\" \/><\/p>\n<h2 id=\"item3\">How is NPS calculated?<\/h2>\n<p>The NPS survey question, as shared earlier, will generate a wide range of responses, which can be segregated and put into categories like promoters, passives, and detractors. Let&#8217;s learn about these categories \u2014<\/p>\n<h3 id=\"item3-1\">Promoters<\/h3>\n<p>These are customers that leave a score of 9 or 10. Such customers are very happy with their experience and will refer your brand to others.<\/p>\n<h3 id=\"item3-2\">Passives<\/h3>\n<p>These are customers that leave a score of 7 or 8. Such customers are neither happy nor completely cross with the experience they had with your brand, and might not refer you to others.<\/p>\n<h3 id=\"item3-3\">Detractors<\/h3>\n<p>These are customers that leave a score of 0 to 6. Such customers had a terrible time with your brand and are likely to leave negative public feedback unless you address their concerns in time.<\/p>\n<p>Once you have the responses, you can <a href=\"https:\/\/justfeedback.com\/blog\/how-to-calculate-nps\/\">calculate the NPS score<\/a> using the formula \u2014<\/p>\n<blockquote class=\"style1\">\n<p class=\"block-flex block-flex-start flex-gap-5\"><i>(Percentage of Promoters) &#8211; (Percentage of Detractors) = NPS Score<\/i><\/p>\n<\/blockquote>\n<h2 id=\"item4\">How is CSAT calculated?<\/h2>\n<p>The responses to the CSAT survey question shared earlier can be scaled from 1 to 10 or 1 to 5, as per a company&#8217;s preference. To calculate CSAT, you will first have to calculate the percentage of customers that left the highest feedback ( 9 and 10, or 4 and 5).<\/p>\n<p>These two scores correspond to the customer being &#8220;satisfied&#8221; and &#8220;very satisfied.&#8221;<\/p>\n<p>Once you have the responses and calculate the percentages, you can get the Customer Satisfaction Scores or measure customer satisfaction using the formula \u2014<\/p>\n<blockquote class=\"style1\">\n<p class=\"block-flex block-flex-start flex-gap-5\"><i>(Total number of Top 2 Responses) \/ (Total number of responses) * 100 = Percentage of satisfied customers.<\/i><\/p>\n<\/blockquote>\n<p>If you talk about CSAT in terms of NPS, you are using the above formula to find the percentage of &#8220;promoters.&#8221;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/justfeedback.com\/blog\/wp-content\/uploads\/2023\/11\/33821353.jpg\" alt=\"customer effort score, customer satisfaction metrics, net promoter score nps\" \/><\/p>\n<h2 id=\"item5\">When should you measure NPS?<\/h2>\n<p>You cannot use NPS surveys anywhere you want. The most ideal way of using NPS surveys is triggering them at the absolute end of a transaction.<\/p>\n<p>Once the transaction is complete, the NPS surveys will help know if the customers would recommend your brand to others. But why should you measure NPS at the very last?<\/p>\n<p>Well, a customer should have the freedom to glide through the customer journey before landing on a conclusion and determining his loyalty.<\/p>\n<p>Net Promoter Score should be measured frequently as it helps reflect on your entire brand and provides adequate insights for effective course correction.<\/p>\n<p>Make sure you invest in NPS reports (as discussed in earlier posts) to track NPS records and track its improvement over time.<\/p>\n<h2 id=\"item6\">When should you measure CSAT?<\/h2>\n<p>Like NPS, Customer Satisfaction surveys are also sent at the end of an interaction. However, these interactions can be conversational or transactional and can happen within the customer journey.<\/p>\n<p>Conversational (customer service) interactions like one with a customer support rep can be followed with a CSAT survey to measure the rep&#8217;s performance.<\/p>\n<p>Customer Satisfaction surveys can also help determine customer satisfaction by using them to evaluate the overall experience of buying a product. The surveys can be triggered when the product is delivered to the customer.<\/p>\n<p>Again, companies should be measuring CSAT as long as they exist. The responses to CSAT surveys should be recorded to seek patterns and take real action for business continuity.<\/p>\n<p><strong>Tip<\/strong>: If you&#8217;re interested in measuring CSAT then it&#8217;s definitely worth looking into <a href=\"https:\/\/justfeedback.com\/blog\/customer-effort-score\/\">Customer Effort Score (CES)<\/a> to get an all-round view of your customers experience.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/justfeedback.com\/blog\/wp-content\/uploads\/2022\/10\/11002271.jpg\" alt=\"customer happiness, customer lifecycle, customer base\" \/><\/p>\n<h2 id=\"item7\">Why should you use NPS? (Advantages)<\/h2>\n<p>The Net Promoter Score comes with a list of advantages as it allows companies to rely on just one metric to capture the effectiveness of their customer experience and loyalty strategies.<\/p>\n<p>NPS surveys are extremely easy to use.<\/p>\n<p>The formula we shared earlier is quite simple too. It&#8217;s amazing how such simplicity provides companies with an effective bird&#8217;s eye view of their customer experience and extends insights to reduce customer churn.<\/p>\n<p>Creating the NPS surveys is effortless. We have a wide range of NPS survey tools available on the market and some of them are even free to use.<\/p>\n<p>The tools even help provide in-depth insights into customer loyalty and retention. In other words, NPS surveys put companies in the fastest route to growth.<\/p>\n<h2 id=\"item8\">Why should you NOT use NPS? (Limitations)<\/h2>\n<p>NPS surveys certainly provide a granular analysis of your CX strategies and challenges, and even provide actionable insights to resolve specific issues.<\/p>\n<p>But the survey itself doesn&#8217;t solve any problems. The question asked in Net Promoter Score surveys is generally considered a &#8220;Complete Question.&#8221;<\/p>\n<p>But its effectiveness relies on the quality of your follow-ups. To use NPS as a growth driver, companies will have to manually address the detractors and passives. Otherwise, NPS surveys function just as a research tool.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/justfeedback.com\/blog\/wp-content\/uploads\/2023\/11\/19949185.jpg\" alt=\"customer satisfaction metric, nps vs csat, measuring customer satisfaction\" \/><\/p>\n<h2 id=\"item9\">Why should you use CSAT? (Advantages)<\/h2>\n<p>CSAT allows marketers and business owners to double down on specific touchpoints of a customer journey. Since it can couple with almost all customer actions, CSAT surveys turn out to be an excellent tool to close the loop with customers.<\/p>\n<p>Whenever a customer takes an action, let&#8217;s say the customer makes a purchase, the action can trigger a CSAT survey encouraging the customer to share how they felt about that specific process.<\/p>\n<p>Since you receive honest customer feedback scores, you can use the opportunity to respond by taking solid action. In other words, CSAT allows marketers to decipher customers&#8217; concerns and use them to develop better business-customer relationships.<\/p>\n<h2 id=\"item10\">Why should you NOT use CSAT? (Limitations)<\/h2>\n<p>We have found that CSAT works well when it&#8217;s used to collect and analyze individual responses. However, it fails to analyze the overall aspect of customer satisfaction.<\/p>\n<p>With CSAT surveys, you can figure out the impact of your customer experience strategies, but it will never help you predict customer loyalty or repeat business.<\/p>\n<p>In other words, CSAT isn&#8217;t a very effective tool to connect CX with your company&#8217;s bottom line.<\/p>\n<p>Nevertheless, CSAT is one of the most useful customer satisfaction metrics if you know what you want to evaluate in a customer journey through surveys.<\/p>\n<h2 id=\"item11\">Which one should you use? NPS or CSAT?<\/h2>\n<p>The primary difference between NPS and CSAT surveys is the timeframe for customer feedback collection. Net Promoter Score is generally used to track and evaluate long-term customer loyalty and satisfaction.<\/p>\n<p>CSAT, however, makes it easier to measure the short-term impact of a touchpoint on customer satisfaction.<\/p>\n<p>Since CSAT evaluates only a short-term impact, it doesn&#8217;t have an impact as huge as that of NPS on a brand&#8217;s profitability and ability to dominate the market.<\/p>\n<p>This is because customer satisfaction surveys are designed specifically to solicit immediate customer feedback and constantly track (and comply with) market CSAT standards.<\/p>\n<p>In other words, NPS and CSAT are two complementary metrics that help address the macro and micro aspects of running business operations that ensure superior customer experience.<\/p>\n<h2>Final thoughts!<\/h2>\n<p>Net Promoter Score and Customer Satisfaction Score measure distinct aspects of a customer journey. While CSAT provides insights into specific actions and features, NPS helps improve the consumer&#8217;s perception of your brand.<\/p>\n<p>However, businesses should use them together as they complement each other and help generate more processable data at key stages of the journey.<\/p>\n<p>Indeed, NPS and CSAT measure distinct cases at any given touchpoint.<\/p>\n<p>But, the collective feedback will only bolster your product and customer service development strategies \u2014 making it easier to boost user-friendliness while improving the company&#8217;s customer retention.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ask any business owner and they&#8217;ll tell you how crucial customer loyalty or satisfaction is to their business effectiveness. Some may even develop business operations around their customers \u2014 an end-user-centric approach that fosters even better business-customer relationships. However, measuring the impact of such operations is an entirely different (and challenging) task. You see, the [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":1372,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"image","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[10,11],"class_list":["post-31","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-insights","tag-nps","tag-csat","post_format-post-format-image"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/justfeedback.com\/blog\/wp-content\/uploads\/2022\/10\/8659219.jpg","_links":{"self":[{"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/posts\/31","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/comments?post=31"}],"version-history":[{"count":26,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/posts\/31\/revisions"}],"predecessor-version":[{"id":2051,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/posts\/31\/revisions\/2051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/media\/1372"}],"wp:attachment":[{"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/media?parent=31"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/categories?post=31"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/justfeedback.com\/blog\/wp-json\/wp\/v2\/tags?post=31"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}