Measuring Customer Satisfaction: KPIs You Should Track

25 February 2026

When it comes to running a successful business, one thing is crystal clear—your customers are your lifeline. Happy customers stick around, spread the word, and boost your bottom line. But how do you know if your customers are truly satisfied? That’s where customer satisfaction KPIs come into play.

You can’t just guess how your customers feel—you need hard data to measure their experiences. Tracking the right metrics will give you insight into what’s working and what needs improvement. So, let’s dive into the key customer satisfaction KPIs you should be monitoring to keep your business thriving.

Why Measuring Customer Satisfaction Matters

Customer satisfaction isn't just a "nice-to-have"—it’s the backbone of a successful business. Here's why:

- Loyal Customers = More Revenue – Satisfied customers keep coming back, increasing their lifetime value.
- Word-of-Mouth Marketing – Happy customers become brand advocates, bringing in new customers through recommendations.
- Better Decision-Making – When you have concrete data, you can make informed decisions about improving products, services, and customer support.
- Competitive Edge – If you're consistently delighting your customers while your competitors aren’t, you’ll have the upper hand in the market.

Now that we know why it’s important, let’s break down the most crucial KPIs to track.

1. Net Promoter Score (NPS)

What is it?
The Net Promoter Score (NPS) measures how likely customers are to recommend your business to others. It’s a simple yet powerful metric.

How to measure it?
You ask customers one simple question:

"On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?"

- Promoters (9-10) – These are your loyal, enthusiastic fans.
- Passives (7-8) – They’re satisfied but not thrilled enough to promote your business.
- Detractors (0-6) – These customers are unhappy and may even discourage others from using your business.

The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters:

NPS = % Promoters - % Detractors

Why does this matter? Because it directly indicates customer loyalty and how well your brand is performing in customer experience.

2. Customer Satisfaction Score (CSAT)

What is it?
The CSAT score measures how pleased customers are with your product, service, or a specific interaction.

How to measure it?
Customers are typically asked:

"How satisfied were you with your experience?"

Responses are given on a scale (typically from 1 to 5 or 1 to 7), with higher numbers indicating greater satisfaction.

The formula is:

CSAT = (Total Positive Responses / Total Responses) × 100

If a large percentage of your customers are giving high ratings, you're on the right track. If not, something needs fixing.

3. Customer Effort Score (CES)

What is it?
CES evaluates how easy it is for customers to interact with your company—whether they’re making a purchase, resolving a problem, or getting help.

How to measure it?
Customers are asked:

"How easy was it to resolve your issue today?"

Responses usually range from "very difficult" to "very easy."

The lower the effort, the better. If customers have to jump through hoops just to get what they need, they’ll look for an easier alternative—your competitor.

4. Customer Retention Rate

What is it?
Customer Retention Rate (CRR) tells you how many customers stick around over a specific time period. High retention means customers are happy enough to continue doing business with you.

How to measure it?
Use this formula:

CRR = [(Customers at End - New Customers) / Customers at Start] × 100

If your retention rate is low, it could signal problems with customer satisfaction, pricing, service, or product quality.

5. Churn Rate

What is it?
Churn rate is the percentage of customers who stop doing business with you. Obviously, the lower this number, the better.

How to measure it?
Use this formula:

Churn Rate = (Customers Lost / Customers at Start) × 100

If you have a high churn rate, customers are likely dissatisfied. It’s crucial to analyze why they’re leaving and take action to improve retention.

6. Average Resolution Time (ART)

What is it?
Customers hate waiting. Average Resolution Time (ART) measures how long it takes for customer support to resolve issues.

How to measure it?
Track the time it takes from when a customer submits a problem to when it gets resolved.

The faster your resolution time, the happier your customers will be. If it’s taking too long, you may need to improve your support processes or add more customer service reps.

7. First Contact Resolution (FCR)

What is it?
FCR measures how often customer issues are resolved in the first interaction. It’s a huge factor in customer satisfaction—nobody likes to be bounced from one agent to another.

How to measure it?
Use this formula:

FCR = (Issues Resolved on First Contact / Total Issues) × 100

A high FCR rate means your support team is effective. A low rate suggests there may be inefficiencies that need attention.

8. Customer Lifetime Value (CLV)

What is it?
CLV estimates the total revenue a business can expect from a single customer over the course of their relationship.

How to measure it?
Use this formula:

CLV = (Average Purchase Value × Purchase Frequency) × Customer Lifespan

The higher the CLV, the more valuable your customers are. Improving satisfaction leads to longer relationships and higher revenues.

9. Social Media Sentiment

What is it?
Nowadays, customers don’t just give feedback through surveys—they take to social media. Monitoring customer sentiment across platforms can give you valuable insight into how they feel about your brand.

How to measure it?
Use social listening tools to track mentions, comments, and reviews about your business. Pay attention to whether the sentiment is positive, negative, or neutral.

If customers are consistently praising you, you’re on the right track. But if complaints are piling up, there’s work to be done.

10. Customer Reviews & Feedback

What is it?
Customer reviews and direct feedback offer qualitative insights that raw numbers can't always capture.

How to measure it?
Track reviews across platforms like Google, Yelp, Trustpilot, and industry-specific sites. Actively request feedback through post-purchase surveys or follow-up emails.

Analyzing this data helps you understand pain points and improve customer experiences.

Final Thoughts

Customer satisfaction is more than just a feel-good metric—it directly impacts your success. By tracking these KPIs, you’ll gain insights into what’s working and what needs to change. The more effort you put into satisfying your customers, the more loyal they’ll become.

So, which of these KPIs are you tracking already? And more importantly, what steps will you take to improve them?