Customer Experience 
Are you measuring your customer satisfaction metrics? Every customer success or support leader encourages their team to prioritize customer happiness. While this mindset aligns with key business growth metrics — such as lifetime value, retention rate, and annual recurring revenue — happiness alone is a subjective goal unless it’s tied to measurable outcomes.
This is where customer satisfaction (CSAT) metrics come into play. These metrics provide an objective way to assess customer experience (CX) and drive improvements based on quantifiable data.
In this article, we’ll explore key CSAT metrics as well as how to calculate them and the challenges they present — along with practical solutions to overcome those hurdles.
7 Key Customer Satisfaction Metrics and KPIs
Knowing your customers’ behavior and the relationship you share with them allows you to tailor your services to better meet their expectations. This can be achieved by tracking key CSAT metrics outlined in this article.
CSAT score
The CSAT score reflects how satisfied customers are with the interactions they have with your business and service experiences. Typically measured on a scale of 1 to 5, it provides direct insight into how well your products or services meet customer expectations. To maintain a high CSAT score, businesses must consistently prioritize and refine CX.
While CSAT and CX are closely related, they are not the same. A seamless, high-quality CX contributes to higher customer satisfaction metrics by ensuring positive interactions at every touchpoint. Consistently high satisfaction in individual interactions enhances overall CX and strengthens brand reputation. In short, CX is the foundation, and CSAT is one of the key indicators of its success.
How to measure CSAT
Ask your customers to rate your product or service on a scale of 1–5, with 5 meaning highly satisfied. Collect the feedback, and then apply this formula:
| CSAT score = Sum of all scores / Number of responses |
|---|
| For example… |
| Individual scores = 5, 4, 4, 5, 3, 3 |
| Number of responses = 6 |
| CSAT score = (5 + 4 + 4 + 5 + 3 + 3) / 6 |
| = 24 / 6 |
| = 4 |
| This translates to a 4 out of 5 CSAT score. |
Alternatively, you can get a detailed CSAT score by changing the formula. This detailed CSAT score formula is shown here:
| CSAT score = (Number of “satisfied” or “highly satisfied” responses / Total number of responses) × 100 |
|---|
| For example… |
| Individual scores = 5, 4, 3, 3, 4, 2, 5, 2, 4, 5 |
| Number of responses = 10 |
| CSAT score = (6 / 10) × 100 |
| = 0.6 × 100 |
| = 60% |
| This means that 60% of your customers had a positive experience. |
The CSAT score directly translates into improvements in CX. “In 2025, CX is still the gold standard,” says Michael Replogle, SVP of Contact Center Advisory Services at Site Selection Group. In his LinkedIn survey, 60% of people chose CX as the top priority in 2025. Customer retention or churn rate ranked second.
To make the most of the customer satisfaction metrics, it should serve as a guiding light for improving CX. However, how you collect CSAT feedback is just as important as the score itself. Automated surveys sent at the end of an interaction are often overlooked or ignored by customers. Instead, try gathering feedback during conversations. Asking customers for input in real time provides a more accurate snapshot of their experience, helps identify pain points, and allows for immediate course correction.
By integrating CSAT feedback naturally into customer interactions, businesses can gain deeper insights, enhance service quality, and continuously refine their CX strategy.
Net Promoter Score
NPS, or Net Promoter Score, measures how likely your customers are to recommend your business to others. Like CSAT, NPS surveys require you to ask for customer feedback. The customers then rate your products and services on a scale of 1–10.
The ratings are then segmented into three categories:
- Detractors (0–6) are unlikely to refer your business to others and may churn soon.
- Passives (7–8) are customers who are satisfied with your business but not enough to provide referrals.
- Promoters (9–10) are people who are extremely happy and very satisfied with your product or service and will likely recommend you to others.
NPS is a CX metric that measures and tracks how customers perceive a business. A high NPS score naturally displays a high level of CSAT.
How to measure NPS
Deduct the total percentage of people who wouldn’t recommend your brand from the total number of people who would.
The NPS score formula is shown here:
| NPS = Total % of promoters − Total % of detractors |
|---|
| For example… |
| Individual ratings = 4, 9, 5, 9, 10, 10, 4, 9, 9, 9 |
| Promoters = 70% |
| Detractors = 30% |
| Total ratings = 10 |
| NPS = 70% − 30% |
| = 40 |
| This means that your NPS score is 40. |
A problem with NPS is that people can be fickle-minded. If the scores 0–6 are treated the same, you ignore a lot of information. And some people never give scores above 7–8. This makes NPS somewhat unreliable. It’s always a good idea to ask your customers for an optional review on top of a score. This provides you with a reason as to why they gave a low or high score.
On top of that, NPS is based on a single question: “How likely are you to recommend our product to a friend or colleague?” Someone can give a low rating simply because they might not know anybody who would benefit from the score. When measuring CSAT, the same question can be rephrased: “As a new customer, how satisfied are you with our product or service?”
Although NPS gives you a good ballpark of overall satisfaction, it can be easily gamed to get good scores only. For example, a customer support person can offer an incentive (in the form of a loyalty discount or offer) to get a 9–10 NPS from customers.
Customer Effort Score
Customer Effort Score (CES) determines how much effort a customer has to exert to get something done with your business. It differs from CSAT and NPS, as its goal is not to measure satisfaction but to find how to improve your customer service experience.
It also follows a single survey question format in which you ask your customers to rate how easy or difficult it was for them to resolve a problem.
Matt Dixon, co-author of The Effortless Experience, states, “Delighting customers doesn’t drive loyalty; reducing their effort does.” In this fashion, CES helps you build customer loyalty by pinpointing areas for improvement in CX.
How to calculate CES
After an interaction, ask your customers a simple question like “How easy was it to handle business with us?” Use a rating scale of 1–5, with 5 expressing “very easy.”
The formula for CES is:
| CES = Total sum of responses / Number of responses |
|---|
| For example… |
| Individual ratings = 3, 4, 5, 3, 2, 4, 5, 5, 4, 2 |
| Number of responses = 10 |
| Therefore, CES = (3 + 4 + 5 + 3 + 2 + 4 + 5 + 5 + 4 + 2) / 10 |
| = 37 / 10 |
| = 3.7 |
| Your CES is 3.7 out of 5. |
CES is a metric that only exists to give you a status report on how easy it is for your customers to work with you. It needs to be acted upon to be improved, and having ratings from 1 to 5 doesn’t tell you the whole story. Similar to NPS, try to get additional customer information that could improve your services and then act upon it.
The ultimate goals are to reduce customer effort, enhance satisfaction, and create positive customer sentiment. By identifying and eliminating sources of frustration, businesses can foster stronger relationships and improve overall CX.
Churn or attrition rate
The churn rate (or attrition rate) measures the percentage of customers who stop doing business with you over a specific period. It’s a critical metric because it directly impacts revenue, profitability, and long-term business growth.
By closely monitoring and analyzing churn, businesses can identify any underlying issues — whether it’s product dissatisfaction, poor CX, or unmet expectations. Addressing these challenges not only reduces churn but also strengthens customer loyalty and satisfaction.
Ultimately, lowering churn leads to higher retention, increased customer lifetime value, and a more stable revenue stream. Fix the root causes of customer attrition, and you’ll build stronger, lasting relationships with your customers.
Frederick Reichheld of Bain and Company, the inventor of NPS, finds that a 5% increase in retention increases profits by 25–95%. This is useful to ensure a decent bottom line. The customer lifetime value rises and so do the profits, making the cost of acquiring such customers negligible. Therefore, minimizing the churn rate is paramount to ensuring customer retention.
How to calculate the churn rate
Take a certain period (e.g., month, year), then find out your total number of customers at the start of this period and the number of customers you lost at the end.
Then apply this formula:
| (Number of customers lost at the end of the period / Total number of customers at the beginning of the period) × 100 |
|---|
| For example… |
| Customers at the start of the month = 250 |
| Customers at the end of the month = 200 |
| Number of customers lost = 250 − 200 |
| = 50 |
| Churn rate = (50 / 250) × 100 |
| = 0.2 × 100 |
| = 20% |
| This means that your customer churn rate is 20%. |
First call resolution rate
First call resolution (FCR) refers to when a customer’s issue is resolved in the same call in which they report the problem. The FCR rate, on the other hand, is a metric that showcases a contact center’s ability to resolve customer issues in a single call.
A high FCR rate shows that your company is very responsive. It also means that you require fewer follow-ups, which allows you to handle more calls.
How to measure FCR
The most popular method of calculating the FCR rate is taking a given time period and checking if a customer has made any calls after their initial call. If a customer has not called for an extended period (say, 10 days), their query can be assumed to be solved.
Aside from this, you can also host a survey similar to the previous metrics, track interactions on customer relationship management platforms, or simply ask your customers via phone.
After the FCRs have been determined, use the following formula to calculate your FCR rate:
| FCR rate = (Total contacts resolved on first contact / Total contacts) × 100 |
|---|
| For example… |
| Total contacts = 200 |
| Contacts resolved on first contact = 75 |
| FCR rate = (75 / 200) × 100 |
| = 37.5 |
| Your FCR rate is 37.5%. |
Mario Schlosser, Co-Founder and President of Technology at OscarHealth, recently visualized the correlation between FCR and agents’ use of knowledge management systems. His analysis suggests that there is a correlation, but it’s not very strong. He feels that it is still tricky for agents to look up the knowledge base on the fly while in a conversation. Below is the scatter plot for more details.
This also suggests that if agents are trained well to utilize the knowledge base while on a call, they would have better chances of ensuring first-contact resolution.
Average handle time
Average handle time (AHT) measures the average duration of a customer interaction. A shorter AHT is preferred, as shorter calls reduce labor costs and allow more customers or callers to flow through the pipeline.
However, focusing too much on a low AHT can lead to rushed solutions and customer dissatisfaction. Speedy service is excellent, but empathy, emotional intelligence, and effective communication contribute more to better CX and customer service. It’s best to strike a balance between reducing handling times and ensuring you don’t sacrifice CX on the way.
Cresta recently analyzed AHT across the travel, hospitality, and financial services sectors. Here’s an overview:
The company found a correlation between a longer AHT and the number of sales done or the satisfactory care offered. Ping Wu, CEO of Cresta, was surprised to see that conversations that resulted in sales were over 20 minutes long, with an AHT of under 7 minutes. Cresta found that longer calls drove sales and saved customer relationships.
Therefore, it’s good to measure AHT, but avoid focusing too much on reducing it, as a high AHT isn’t such a bad thing. It can result in positive outcomes.
How to calculate AHT
| AHT = (Talk time + Hold time + Follow-up time) / Total number of calls |
|---|
| For example… |
| Talk time = 40 minutes |
| Hold time = 5 minutes |
| Follow-up time = 5 minutes |
| Total calls = 10 |
| AHT = (40 + 5 + 5) / 10 |
| = 50 / 10 |
| = 5 |
| This means that your AHT is 5 minutes. |
Referral rate
Referral rate is a powerful metric that taps into the age-old power of word-of-mouth marketing. It represents the percentage of customers who refer new customers to your business, either directly or through referral programs.
A high referral rate indicates a strong base of satisfied, loyal customers who actively promote your brand. These customers aren’t just happy with your product or service — they trust it enough to recommend it to others.
Beyond tracking referrals, businesses should analyze who is referring and why. Understanding the key drivers behind customer advocacy can help refine marketing strategies, improve CX, and amplify brand trust. In short, the higher your referral rate, the healthier and more sustainable your business growth.
How to calculate referral rate
| Referral rate = (Number of successful referrals / Total number of customers) × 100 |
|---|
| For example… |
| Number of successful referrals = 100 |
| Total number of customers = 1,000 |
| Referral rate = (100 / 1,000) × 100 |
| = 0.1 × 100 |
| = 10 |
| Your referral rate is 10%. |
When gaining referrals, ensure you use all the channels available. Set a deadline for each of those channels to make sure you generate more referrals.
Why These Metrics Matter
When actionable insights from customer satisfaction metrics are combined, you get an understanding of your customer journey from the initial point of contact to after-sales customer service. You’ll see that it’s not a sequential journey.
Measuring CSAT levels gives you a starting point for transforming “OWs” into “WOWs.” It helps you make better, data-driven decisions to ensure customer happiness and serves business growth in different ways, including:
- Improved customer loyalty: High CSAT means happy customers and happy customers display loyalty. Similarly, a high NPS shows you your most loyal customers who provide referrals and make repeat purchases.
- Operational excellence: FCR highlights the effectiveness of your customer service operations, and a higher FCR rate translates to reduced expenses and time consumption. It also goes hand in hand with AHT, which reveals areas in which your operations may be lacking. Both FCR and AHT also show how your agents are performing.
- Revenue growth: Higher retention, a lower churn rate, and a high referral rate mean that you have satisfied customers. These customers provide you with a consistent revenue stream and help you safeguard your future growth by making repeat purchases and promoting your business.
Common Challenges and Solutions
Below are some notable challenges you’ll encounter in calculating customer satisfaction metrics. To ensure business stability and growth, you should find ways to address them.
Survey fatigue
With metrics such as CSAT, NPS, and CES being surveyed heavily, a few situations, such as delayed responses and unreliable data, are bound to arise. Aside from that:
- Your support team may be overwhelmed by the amount of survey responses.
- Your customers may grow weary of answering surveys.
- If not acted upon, your customers may stop sharing feedback and lose trust in your company.
How to address survey fatigue
The best way to reduce survey fatigue is to design simple and short CSAT surveys. Personalize these surveys depending on the preferred time and customer behavior.
Another way is to leverage AI and real-time analytics to infer CSAT from natural conversations rather than burdening the customer with an additional survey to complete. Conversational AI would be a good solution from which to draw CSAT insights in communication.
Data silos
Data silos get created due to data being collected across various platforms. These silos block your overview of customer interactions, as much data will likely be lost or overlooked.
Due to data silos, the customer service teams face delays if they do not have access to the required data for personalization and service purposes.
How to centralize data
Using a unified platform like Nextiva helps centralize data from all your sources. This gives you a single, centralized, and reliable data source that makes it easy to keep track of data and use it in customer conversations.
Inconsistent measurement
The below challenges are frequently encountered in data collection, especially during surveys.
- Lack of reliability: Unless surveys are well-monitored and sent out to the right customer segment, they might not provide reliable data.
- Multiple collection mediums: Surveys may be carried out through various means, such as IVRs, emails, and text. It is tricky to make sense of data gathered through a variety of different channels.
- Inconsistency based on timing: Sometimes, people change their opinions over time, so it is best to collect feedback within 24 hours of an interaction rather than a week later.
These factors result in a somewhat skewed interpretation of customer satisfaction metrics, making it unreliable, inaccurate, and unusable for making decisions.
How to solve inconsistent measurement
Adopt a unified platform to collect customer responses, ensuring consistency even when responses come through different channels. It’s best if you can automate this process end to end.
Extended considerations
Having access to customer data also places the responsibility of data privacy on your business. To build customer trust, you must comply with regulations like the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), etc. Be completely transparent about how you’re using and protecting customer data.
Overall, metrics like NPS and CSAT don’t tell the whole story; they are just numbers that suggest customer behavior. Unlike quantitative data, qualitative data tells you the “why” behind the scores and helps you understand the customer’s experience with context. You attain this qualitative data through interviews, reviews, and social media comments. This data highlights everything from likes and dislikes to customer needs in their own words.
But sometimes, there’s less balance between qualitative and quantitative data collected, resulting in ambiguous decisions.
Try to use qualitative and quantitative data when making decisions to improve customer satisfaction metrics and overall CX.
Optimize Customer Satisfaction Metrics With Nextiva
No matter what channels you use to collect customer responses and feedback, Nextiva makes it easier to combine everything and squeeze out the insights you seek. Whether by phone, email, chat, or social media, all customer communication gets analyzed to bring relevant insights.
The platform delivers AI-powered features that offer real-time insights, helping agents improve customer satisfaction metrics during live interactions. You also get a customized dashboard to tailor metric tracking for your specific business needs.
Get Nextiva. Start addressing issues in live conversation, and streamline the service experience.
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