Customer satisfaction index
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The customer satisfaction index (CSI) is a metric that reflects the overall customer satisfaction with a company in terms of product quality, customer service, price, etc. It allows brand owners to determine the reasons for consumers’ satisfaction and dissatisfaction.
In this article, we’ll explain why CSI is important, how it differs from CSAT, and how to calculate it.
Why is the customer satisfaction index important?
Measuring customer satisfaction is a top priority for every business because clients’ feedback is a valuable contribution to the development of a company. This metric allows marketers to gain insights into various business aspects and have a clear picture of a company’s health.
Calculating the customer satisfaction index enables business owners to:
- reveal business areas that have a greater impact on customer satisfaction;
- identify the level of customer satisfaction from different perspectives (customer service, product quality, price, website usability, etc.);
- blow up sales;
- increase customer retention and loyalty;
- decrease customer churn;
- allocate budget wisely;
- optimize and improve products.
Now that you know the importance of CSI, it’s time to learn how to measure it.
How to Calculate Your Customer Satisfaction Index
CSI is closely related to the customer satisfaction score (CSAT). The only difference is that CSI allows you to calculate your overall satisfaction score based on different attributes.
For example, your overall customer satisfaction rating is 70%, where the product’s quality comprises 50%, and the remaining 20% are your unknown attributes. Hence, you should understand which business area contributes significantly to your company’s growth.
To calculate your customer satisfaction index, use the formula below.
CSI = (attribute 1+attribute 2+attribute 3) / 3
Note: an attribute is any area you are interested in.
Say, your customer satisfaction scores are as follows:
- Website usability — 60
- Product quality — 70
- Customer care — 50
- Price — 55
Then, your CSI is 58.75
(60+70+50+55) / 4 = 58.75
This is the overall satisfaction score of your company that you can use during presentations and internal meetings. Alternatively, you can use special analytics tools to measure your CSI.
Congrats, now you know what the customer satisfaction index is and how to calculate and use it.
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