What is Customer Satisfaction Score (CSAT)?

Published

April 22, 2026

Last updated

April 22, 2026

Definition

Customer Satisfaction Score (CSAT) is a key performance indicator used to measure customer happiness with a specific product, service, or interaction. It is typically captured through a single-question survey asking customers to rate their satisfaction on a scale, such as 1-5.

CSAT provides a real-time, transactional measure of customer sentiment at key touchpoints in their journey. Businesses use this feedback to quickly identify and address issues, improve service quality, and enhance the overall customer experience. While not a direct financial figure, strong CSAT scores are leading indicators of improved Net Revenue Retention (NRR) and higher Customer Lifetime Value (CLV).

As one of the core operating metrics, CSAT data is often integrated into business planning platforms. This allows finance and operations teams to model the impact of customer satisfaction initiatives on revenue forecasts and overall company performance.

Related terms

Net Revenue Retention (NRR)

Net Promoter Score (NPS)

Customer Renewal Rate (CRR)

Time to Value (TTV)

Frequently Asked Questions

What is CSAT in accounting?

CSAT is not a direct accounting metric but is a critical operating metric that influences financial KPIs. It directly impacts outcomes like Net Revenue Retention (NRR) and overall revenue forecasts.

What is the best KPI for measuring customer satisfaction?

The best KPI depends on the goal, as different metrics measure different aspects of satisfaction. CSAT is ideal for gauging short-term, transactional happiness, while Net Promoter Score (NPS) measures long-term brand loyalty.

How do I calculate my CSAT score?

To calculate CSAT, divide the number of satisfied customers (e.g., those who chose 4 or 5 on a 5-point scale) by the total number of survey responses, then multiply by 100 to get a percentage.