6 of the most important customer satisfaction KPIs

Measuring customer satisfaction key performance indicators (KPIs) in your business is imperative for evaluating company performance, tracking progress against goals, and identifying areas for improvement. After all, keeping customers happy is key for any business that wants to enjoy a long, healthy life — and it starts with monitoring the metrics that matter most. 

In this article, we’ll cover why you need to measure customer satisfaction KPIs, discuss six key customer satisfaction metrics to track, and share Jotform tools you can use to measure customer satisfaction. 

Why you need to measure customer satisfaction

Measuring customer satisfaction KPIs helps you uncover potential issues in your business, understand company and team strengths and weaknesses, and determine areas for improvement. The actionable insights you gain will help you develop strategies to enhance customer satisfaction at every stage of the customer journey – which can increase customer loyalty and retention, attract new customers, and grow revenue. 

6 key customer satisfaction metrics to track 

While it’s important to track customer satisfaction KPIs so you can measure performance and evaluate your business goals against them, not every business needs to track 20 different metrics. Choose the KPIs that most closely align with your primary business goals and leave the rest. 

With that in mind, here are six of the most beneficial customer satisfaction KPIs to track.

1. Customer satisfaction score (CSAT)

Your customer satisfaction score measures satisfaction with your company, product, or service by asking customers a survey question like, “How satisfied were you with [product/service] on a scale of 1 to 5, with 1 being very unsatisfied and 5 being very satisfied?” after a transaction or other interaction. 

To determine your CSAT score, add the number of 4 or 5 ratings, divide by the total number of responses, and multiply by 100. 

2. Net Promoter Score^® (NPS^®)

Net Promoter Score measures customer loyalty by asking the question, “On a scale of 1 to 10, how likely are you to recommend our [company/product/service] to others?” after they have used your product or service for a certain length of time. 

To calculate your NPS score, classify responses by detractors (customers who rated you 0 to 6), passives (customers who rate you 7 or 8), and promoters (customers who rated you 9 or 10). Determine the percentage of responses that are classified as detractors and the percentage classified as promoters. The percentage of detractors minus the percentage of promoters is your Net Promoter Score.

3. Customer effort score (CES)

Customer Effort Score measures the effort required for a customer to make a purchase, locate product information, get in touch with customer service, resolve a problem, or take some other action related to your product or service. CES is rated on a scale of 1 to 5 or 1 to 7, from very difficult to very easy.

For example, you can ask a survey question like, “How easy was it for you to purchase our software?” or “How easy was it for you to learn about our latest product features?” 

To determine your CES score, add the sum of responses and divide that number by the total number of responses. 

4. Customer churn rate (CCR) 

Customer churn rate or attrition rate measures the percentage of customers who stop buying products or services from your company. While some churn is to be expected, consistent high churn and low retention likely mean there are issues with your products or services that need to be addressed. Your CES score has a big impact on customer churn, so be sure you’re measuring that metric. 

To calculate customer churn rate, note the number of customers your company had in a specific time period, such as at the beginning of a month, quarter, or year, and the number of customers lost during that time period. Then divide the number of customers lost by the total number of customers your company had in that timeframe to determine your CCR.

5. Average resolution time (ART)

Average resolution time refers to the average time it takes to resolve a customer service issue, request, or support ticket. This metric is directly related to customer satisfaction, as many customers rate fast resolutions as a key element of quality customer service. Resolution time can be measured in days or hours. 

To calculate ART, add the total duration of customer service or support chats, and divide by the number of customer conversations or support tickets.

6. Customer lifetime value (CLV)

Customer lifetime value refers to the total amount of revenue your business expects to make from a single customer over the course of the business relationship. 

To calculate CLV, multiply the individual customer’s average purchase amount across the duration of the customer journey. 

Other metrics to consider

Depending on your business model, other customer satisfaction KPIs you may want to measure include:

Abandonment rate: The number of customers who abandon a purchase or other transaction before its completion, or who end a customer service call before the call issue is resolved. 

Average handle time (AHT): The average amount of time a customer care representative spends on a customer service or support call.

Customer service satisfaction (CSS): This metric calculates how satisfied buyers are with your customer service after the sale, which you can find out by sharing a survey with customers post-purchase.

Customer reviews: Customer reviews of your products or services can be found on your own social media channels, product comparison or product review websites, and other online channels.

First contact or first call resolution (FCR): The percentage of customer issues resolved during a customer’s first interaction with a customer care representative.   

First response time (FRT): The length of time from a customer’s first inquiry or concern to when a customer support representative responds.

Measuring customer satisfaction KPIs with Jotform

Jotform makes it easy to measure customer satisfaction with a collection of customer satisfaction evaluation form templates, a selection of more than 30 templates to help you gather feedback, get to know your customers, and uncover ways to improve your business. Simply choose the best template for your purposes, customize it with our drag-and-drop builder, and add it to your website to start collecting customer responses right away. 

To collect customer feedback, use Jotform’s Customer Satisfaction Survey Form template. Tailor the form template to match your needs, then embed it on your website or share it with customers directly via a link.

You can add questions, include a file upload field to receive screenshots or documents, change fonts and colors to match your branding, and even send survey results directly to your other accounts, including Google Sheets, Salesforce, Airtable, Trello, Slack, and others.

To track submissions, use Jotform Tables. Jotform Tables lets you collect, organize, and manage data in a powerful, all-in-one workspace. Search and filter your data, send data to other platforms, collaborate with teammates, and so much more.

And finally, use Jotform Report Builder to visualize your survey results. Generate professional reports using your online form data and analyze the results with Jotform Report Builder, then easily present or share reports or presentations in seconds.

Check out Jotform today to start creating your own customer satisfaction measurement tools.

Photo by Chase Chappell on Unsplash

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