You think your customers are happy, but are they really? Without measuring satisfaction, you're guessing. Unhappy customers rarely complain—they just leave and tell their friends. By the time you notice, it's too late. Customer satisfaction metrics tell you exactly where you stand and what to fix before customers walk away. Here's how to measure what matters.
Why Measure Customer Satisfaction?
The business case is clear:
- 5x cheaper to retain customers than acquire new ones
- Satisfied customers spend 140% more than unsatisfied ones
- 86% of customers will pay more for better experience
- 1 unhappy customer tells 9-15 people about bad experiences
- Happy customers refer 3-5 new customers on average
The Hidden Truth:
96% of unhappy customers don't complain—they just stop coming back. Measuring satisfaction is the only way to catch problems before customers leave.
The Essential Metrics
1. Net Promoter Score (NPS)
What it measures: Likelihood to recommend your business
The question: "On a scale of 0-10, how likely are you to recommend us to a friend?"
Scoring:
- • 9-10: Promoters (loyal enthusiasts)
- • 7-8: Passives (satisfied but unenthusiastic)
- • 0-6: Detractors (unhappy, may damage brand)
NPS = % Promoters - % Detractors
Example Calculation:
100 responses: 60 promoters (60%), 30 passives (30%), 10 detractors (10%)
NPS = 60% - 10% = 50
Benchmarks:
- • 70+: Excellent (world-class)
- • 50-70: Great (strong loyalty)
- • 30-50: Good (room for improvement)
- • 0-30: Needs work
- • Below 0: Crisis mode
NPS is simple and correlates strongly with growth. Companies with NPS above 50 grow 2x faster than competitors.
2. Customer Satisfaction Score (CSAT)
What it measures: Satisfaction with specific interaction
The question: "How satisfied were you with [service/experience]?"
Scale: 1-5 (Very Unsatisfied to Very Satisfied)
Calculation:
CSAT = (Number of satisfied customers (4-5) ÷ Total responses) × 100
Example: 80 satisfied out of 100 = 80% CSAT
When to Use CSAT:
- • After each appointment/purchase
- • After customer service interaction
- • After delivery/completion
- • Post-problem resolution
Benchmarks:
- • 85%+: Excellent
- • 75-85%: Good
- • 65-75%: Needs improvement
- • Below 65%: Serious issues
Ask CSAT immediately after the experience (within 24 hours). Waiting a week reduces response rates by 50% and accuracy suffers.
3. Customer Effort Score (CES)
What it measures: How easy it was to do business with you
The question: "How easy was it to [book appointment/get help/resolve issue]?"
Scale: 1-7 (Very Difficult to Very Easy)
Why CES Matters:
96% of customers who have high-effort experiences become disloyal, compared to only 9% who have low-effort experiences.
What to Measure with CES
- Booking process: "How easy was it to book your appointment?"
- Finding information: "How easy was it to find our hours/pricing?"
- Getting support: "How easy was it to get help?"
- Problem resolution: "How easy was it to resolve your issue?"
Low effort = high loyalty. Focus on making every interaction effortless. Automation (AI booking, instant responses) dramatically reduces customer effort.
4. Online Reviews & Ratings
What it measures: Public perception and satisfaction
Where to track: Google, Yelp, Facebook, industry-specific sites
Key Metrics:
- • Average rating: Target 4.5+ stars
- • Total reviews: More = more credibility
- • Recent reviews: Recency matters for SEO
- • Response rate: % of reviews you respond to (aim for 100%)
- • Sentiment trends: Are ratings improving or declining?
93% of consumers read online reviews before making a purchase. Your review score directly impacts revenue. A 1-star increase can boost revenue by 5-9%.
5. Retention & Churn Metrics
What it measures: Customer loyalty through behavior
Customer Retention Rate
Formula:
((Customers at end - New customers) ÷ Customers at start) × 100
Example: Started with 100, ended with 110, gained 20 new
((110 - 20) ÷ 100) × 100 = 90% retention
Churn Rate
Formula:
(Customers lost ÷ Customers at start) × 100
Example: Lost 10 out of 100 = 10% churn
Benchmarks:
- • Retention 80%+: Excellent
- • Retention 60-80%: Good
- • Retention below 60%: Needs work
- • Churn below 10%: Healthy
- • Churn above 20%: Crisis
Repeat Purchase Rate
Percentage of customers who come back:
(Customers who purchased 2+ times ÷ Total customers) × 100
Target: 40%+ for service businesses
How to Collect Feedback
1. Post-Service Surveys
Send automatically 24 hours after service:
Sample Survey:
1. How satisfied were you with your experience? (1-5)
2. How likely are you to recommend us? (0-10)
3. What did we do well?
4. What could we improve?
Keep surveys short (4-5 questions max). Long surveys get 50% fewer responses. Use AI to send surveys automatically.
2. In-App/SMS Feedback
Quick one-question surveys via text:
"Quick question: How was your experience today? Reply 1-5 (1=poor, 5=excellent)"
Response rate: 30-40% (much higher than email)
3. Review Requests
Ask happy customers to leave public reviews:
"We're so glad you loved your experience! Would you mind sharing your feedback on Google? [Link]"
Only ask for public reviews from customers who gave you 4-5 stars privately. Don't push unhappy customers to review publicly—address their concerns privately first.
4. Direct Conversations
Sometimes the best feedback comes from asking:
- "How was everything today?"
- "Is there anything we could do better?"
- "What would make your experience even better?"
Acting on Feedback
1. Close the Loop with Detractors
When someone gives low scores (NPS 0-6, CSAT 1-2):
- Respond within 24 hours
- Acknowledge the issue: "I'm sorry we didn't meet your expectations"
- Ask for details: "Can you tell me more about what happened?"
- Offer a solution: Refund, redo, discount, or other remedy
- Follow up: "Did we make it right?"
Recovery Impact:
70% of complaining customers will do business with you again if you resolve their complaint. If resolved quickly, that number jumps to 95%.
2. Identify Patterns
Look for recurring themes in feedback:
Example Pattern Analysis:
"15 customers mentioned 'hard to book' in the last month"
Action: Implement online booking system
Result: CSAT increased from 75% to 88%
3. Celebrate Wins
Share positive feedback with your team:
- Post 5-star reviews in team chat
- Recognize staff mentioned in positive feedback
- Use testimonials in marketing
- Track improvement trends
4. Set Improvement Goals
Use metrics to drive continuous improvement:
Example Goals:
- • Increase NPS from 45 to 55 in 6 months
- • Improve CSAT from 80% to 85% this quarter
- • Reduce churn from 15% to 10% this year
- • Get 20 new Google reviews this month
Automation for Feedback
Manual feedback collection doesn't scale. Automate it:
What to Automate
- Survey sending: Automatic 24 hours after service
- Review requests: To customers who gave 4-5 stars
- Detractor alerts: Notify manager immediately of low scores
- Thank you messages: To customers who leave feedback
- Reporting: Weekly satisfaction dashboards
AI-powered platforms like Infinity Pro AI automatically collect, analyze, and alert you to satisfaction issues. You get insights without manual work.
Dashboard & Reporting
Track these metrics monthly:
Monthly Satisfaction Dashboard:
- NPS ScoreTarget: 50+
- CSAT ScoreTarget: 85%+
- Average Review RatingTarget: 4.5+
- Retention RateTarget: 80%+
- Churn RateTarget: <10%
- New Reviews This MonthTrack trend
Frequently Asked Questions
Which metric is most important: NPS, CSAT, or CES?
All three measure different things. NPS predicts growth, CSAT measures transaction satisfaction, CES predicts loyalty. Start with CSAT (easiest to implement), add NPS for strategic insight, then CES to reduce friction.
How often should I survey customers?
After every transaction for CSAT. Quarterly for NPS. Don't over-survey—once per transaction is enough. Surveying the same customer weekly will annoy them and reduce response rates.
What's a good response rate for surveys?
Email surveys: 10-20%. SMS surveys: 30-40%. In-person: 50%+. Improve response rates by keeping surveys short (under 2 minutes), sending at the right time (24 hours after service), and occasionally offering incentives.
Should I respond to all reviews, even positive ones?
Yes! Responding to positive reviews shows appreciation and encourages more reviews. Responding to negative reviews shows you care about feedback. Aim for 100% response rate—it improves SEO and customer perception.
How do I improve low satisfaction scores?
1) Identify patterns in negative feedback. 2) Fix the most common issues first. 3) Close the loop with detractors. 4) Train staff on problem areas. 5) Measure again in 30 days. Most businesses see 10-20% improvement within 3 months of focused effort.