Customer Satisfaction Score (CSAT)

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Customer Satisfaction Score (CSAT) measures how satisfied your customers are with a specific interaction, product, or overall experience . CSAT is a direct indicator of customer happiness. The higher your CSAT, the better your chances of retaining those customers and turning them into repeat buyers or even brand advocates.

To calculate CSAT, use a survey that asks customers to rate their satisfaction on a scale (e.g., 1 to 5 or 1 to 10). Divide the number of satisfied responses by the total number of responses and multiply by 100.

CSAT = (Number of satisfied customers / Total number of responses) x 100

Example: If 400 out of 500 responses are positive, your CSAT would be (400/500) x 100 = 80%.

Monthly recurring revenue (MRR)
Monthly recurring revenue (MRR) is the total predictable revenue your business earns from board members email list subscriptions or recurring purchases each month . Monitoring MRR helps you assess the health of your business.

An increase in MRR indicates strong customer retention and satisfaction, while a decrease could mean that customers are cancelling or reducing their subscriptions. To calculate MRR, add up the monthly revenue generated by all recurring sources.

MRR = Number of customers × Average revenue per customer (ARPC)

Example: If you have 100 customers paying $50 per month, your MRR is 100 x $50 = $5,000.

Read more :

How to ask clients for testimonials

How to effectively measure customer retention
Measuring customer retention

is key to building loyalty and long-term growth. It's not just about knowing who stays and who goes; it's about understanding why they do it and using that knowledge to improve customer retention rates.

The good news is that there are a variety of tools and techniques that help businesses track their customer retention rates. For example:

Customer Retention Software : These KPI software focus on tracking customer interactions and engagement levels, providing insights into customer behaviors and potential customer churn risks.
Survey and feedback tools : Facilitate the collection of post-purchase feedback, helping businesses capture and analyze customer satisfaction and areas for improvement