The 6 Customer Satisfaction Metrics You Need to be Measuring

Gratification. Satisfaction. Contentment. These are the feelings that all businesses want to leave their customers with. According to Dimensional Research, 52% of consumers have admitted to making additional purchases from a brand after a positive customer experience. The research has also found that positive reviews about customer service influence 90% of customers in making purchasing decisions. 

The question then is: how should you measure customer satisfaction? There are multiple metrics that can help measure a customer’s satisfaction level, but which ones can help you improve your customer experience endeavors.? Let’s dive in. 

What are Customer Satisfaction Metrics?

Customer satisfaction metrics, or CX metrics, are an excellent way to measure how customers feel about your product, customer service, and the overall customer experience that you provide. 

As Peter Drucker, the Australian management consultant, once said, ‘if you can’t measure it, you can’t manage it.’ Having a repository of customer satisfaction metrics can help identify future business needs and improve the customer journey to have a seamless experience. 

This can help boost customer retention, loyalty and even contribute to revenue growth in the long term. 

Benefits of Measuring Customer Satisfaction Metrics

Why measure customer satisfaction scores? Apart from helping you understand your customers’ needs better, measuring these metrics can benefit the business. 

1. Increase in Loyal Customer Base

When you provide superior customer experiences, you build a loyal customer base for a lifetime. For instance, one study from Ameyo has found that 67% of customer churn can be prevented if companies resolve issues the first time around. Measuring customer satisfaction can give you consistent feedback on how your customers feel about your company. 

Quantifiable metrics can help you identify customer pain points and fix them for a better customer experience. And it’s no trade secret that loyal customers contribute directly to increased revenues. 

2. Become More Customer-Centric

When you consistently measure customer satisfaction metrics, you automatically become a customer-centric company. According to a Superoffice survey, customer-centric companies are 60% more profitable than other companies. As Bill Gates once said, ‘your most unhappy customers are your greatest source of learning.’ 

Measuring how satisfied or dissatisfied your customers are with your products and services can help you put them more consciously at the center of your decision-making processes. 

3. Improvement in Brand Reputation 

Imagine having a great experience at a restaurant. The waiters are polite, the food is sumptuous, and the price is reasonable. Are you not going to wax and wane about it to friends and family? 

The same goes for all businesses. People tend to tell an average of 11 others about a good experience they have had with a company. Measuring customer satisfaction metrics can help you ensure you provide great experiences worth talking about. This will automatically improve your brand reputation. 

4. Better Marketing Efforts

Customer satisfaction metrics give you the power of knowing what works for your customers. Once you know what makes them tick, you can easily use it to reach out to customers in your marketing endeavors. 

When you know what your customers like most about your business or product, you can amplify that to get more business. 

6 Customer Satisfaction Metrics You Should Be Tracking

There are numerous metrics and measurements that can tell you about your customers’ satisfaction levels. However, here, we outline the six most valuable metrics to use to your advantage. 

1. Net Promoter Score (NPS)

Net Promoter Score

Net Promoter Score or NPS is a great metric to track when it comes to customer satisfaction. It tells you how likely a customer is to recommend your product or service to others. 

Fred Reichheld from the management consulting company Bain & Co. came up with NPS in 2003. It’s an easy metric to track since all you have to ask customers is how likely they are to recommend your business to others. NPS is scored from 0 to 10, with 10 being the highest. 

Based on the scores, customers can be grouped into three distinct categories:

  • Promoters: Customers who score you over 9 in NPS are called promoters. Not only are they likely to be big brand loyalists, but these customers are also your biggest cheerleaders and will happily promote your brand among friends and family. Ideally, you want a majority of your customers to be in this category.  
  • Passives: Customers scoring you between 7-8 on NPS are somewhat satisfied customers. However, they will probably not be brand ambassadors. They may also switch to another brand if they find something more appealing. However, with a bit of nudge and better customer experience, passives can be pushed to become promoters. 
  • Detractors: Any customer scoring you 6 and below on the recommendation question are detractors. These customers are not very satisfied with what you have on offer. Detractors may also spread negative comments about your brand to others. 

Pros of NPS

  • NPS is a single-question metric that is easy to track. 
  • Using NPS, you can make drastic changes to your brand that can improve loyalty. 
  • High NPS scores also directly translate to increased brand loyalty as well as the likelihood of word-of-mouth marketing.


2. Customer Satisfaction Score (CSAT)

CSAT ScoreCustomer Satisfaction Score or CSAT is a straightforward metric that can reveal a lot about immediate customer satisfaction. Like NPS, it can be measured using a single question that asks customers how satisfied they are with your product or service. Once more, it is scored on a scale. This can be 1-5 or 1-10. The lower your CSAT score, the less satisfied your customers are with you.

The simplest way to gather CSAT scores is to have a feedback form at the end of every service experience. This way, you can get quick and easy responses. However, do note that sometimes dissatisfied customers may choose not to participate in it at all. This can lead to false-positive results. 

Pros of CSAT

  • CSAT is quick, easy, and intuitive. 
  • It can be used to make instant changes to your customer experience journey. 
  • It provides a quantitative figure that can be benchmarked against other companies. 


3. Customer Effort Score (CES)

Customer Effort ScoreCustomer Effort Score or CES measures how easy it is for customers to get their issues resolved. Usually, conflict or grievance resolution is an essential component of a customer’s experience. The easier you make it for customers to troubleshoot, the better their satisfaction will be with the company. A simple question like ‘Was it easy for you to get your issues resolved?’ is enough to track this metric. Answers can range from Strongly Agree to Strongly Disagree or even be worded such that they can be scored on a scale. As it may be obvious, the higher a CES you receive, the more satisfied your customers are. Usually, CES is scored on a scale of 1-7. Any score that averages 5 is an excellent score to aim for. 

Pros of CES

  • CES is a direct way to measure a particular pain point in the customer journey: grievance redressal. 
  • It can help smoothen out the customer experience journey immediately. 
  • Improving CES can directly improve customer experiences. 

4. Customer Churn Rate (CCR)

Customer churn rate is a metric that tells you how many customers you have lost as a company over some time. You directly cut to the chase with this one and find out how many customers stick around with your business. The customer churn rate is an important customer satisfaction metric because it tells you about your ability to retain customers. 

Calculating customer churn rate can tell you where you falter as an organization with retaining customers. This is a crucial metric to calculate because it can cost up to seven times more to get a new customer than to keep one. By calculating CCR, you can monitor and enforce relevant measures to improve customer satisfaction. The formula to calculate CCR is:

Churn rate

Pros of CRR

  • CRR directly measures customer retention and loyalty. 
  • It is a great quantitative score that paints an accurate picture of where you’re at with your customers.

5. First Response Time (FRT)

First response time is the average time it takes a customer representative to respond to a customer query. FRT is a crucial customer service metric but can also be a great indicator of customer satisfaction levels. The sooner you take care of customer problems, the happier they will be. 

FRT is a direct reflection of your efficiency and handling of customers. The lower your FRT, the better it is for you and your customers. Lowering your FRT will show your customers that you care for them and value their time. The formula for FRT is:

First Response Time

On average, a sound ticketing system should have an FRT of fewer than 24 hours, and phone calls should be answered in under 3 minutes, and live chat should be responded to in 1.5 minutes. 

Pros of FRT

  • FRT is easy to calculate and gives an accurate figure of how long your customers have to wait for a response. 
  • FRT can be used to improve customer satisfaction rates immediately. 

6. Average Handle Time (AHT)

Average handle time is the average time it takes your customer service team to handle one customer query. Although typically calculated for telephone calls in call centers, this metric can be calculated across channels like live chats, emails, etc. 

AHT is intricately tied with customer satisfaction because the sooner you solve customer issues, the happier they will be. AHT takes into account total talk time, hold time, and the number of calls handled. It would be the total chat time, waiting time, and the total number of customer complaint chats handled for chats. Remember that your customer’s time is valuable. If AHT is high, customers can get impatient, directly impacting other satisfaction metrics like CSAT and NPS. There are many ways to improve AHT if you are erring on the higher side:

  • Train all agents to handle issues effectively
  • Keep a close eye on agent performance
  • Give customer support agents pre-written scripts for FAQs
  • Use chatbots or other automated tools for instant responses to FAQs
  • Record calls and chats to know where you are slipping up

Pros of AHT

  • AHT directly computes how efficient you are with handling customer queries. 
  • You can use AHT to improve customer satisfaction metrics and train agents to be more productive.


Customer satisfaction metrics are essential to measuring how happy your customers are, but they can also be a pivotal part of driving growth. With Freshchat, you can improve your overall customer satisfaction levels by ensuring no query goes unanswered. Our automated chatbots and live chat reduce handling time, empower agents to respond quickly, and can be used across channels to access customers where they’re at.