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NPS and CSAT

| Article: 3 min read | Customer retention

NPS (Net Promoter Score) is a loyalty index: buyers are asked how likely they are to recommend the store on a scale from 0 to 10, and the share of critics is subtracted from the share of promoters. CSAT (Customer Satisfaction Score) is a rating of satisfaction with a specific interaction, such as delivery or a support reply, usually on a short scale (often 1–5).

In plain words

CSAT answers the question "how much did you like this?" and is tied to a moment: after delivery, after a support contact. NPS answers the question "would you recommend us?" and shows the attitude to the store as a whole. One metric does not replace the other.

NPS: how to calculate

As Nielsen Norman Group describes it, the question reads "How likely are you to recommend this site/product/service to a friend or relative?", on a 0–10 scale. Promoters are 9–10, detractors 0–6, passives 7–8 (they count in the total but don't affect the result). NPS = % promoters − % detractors, from −100 to +100 (NN/g, 2024). The idea was proposed by Frederick Reichheld in a 2003 Harvard Business Review article, "The One Number You Need to Grow" (HBR).

Example (illustrative numbers). After ordering, 200 buyers responded: 100 gave 9–10, 60 gave 7–8, 40 gave 0–6. Promoters are 50%, detractors 20%, NPS = 50 − 20 = +30.

CSAT: how to calculate

There is no single standard. A common variant: the question "How satisfied are you with delivery?" on a 1–5 scale, and CSAT is the share of 4–5 answers. For example, of 200 answers 150 are 4–5: CSAT = 150 ÷ 200 = 75%. This is a common practice, not a standard: define it for yourself once and don't change it, otherwise the trend can't be compared.

How different sources view it

NN/g considers NPS a useful but limited loyalty metric. Among the limitations:

  • it doesn't show what exactly is wrong;
  • grouping into three categories loses information (an improvement from 2 to 5 still leaves a person a detractor);
  • it needs a large sample, with five respondents it is unreliable;
  • answers depend on country and industry, so other people's "averages" are hard to compare;
  • the metric can be "gamed" by surveying only the satisfied.

NN/g advises not changing the standard formula and accompanying NPS with behavioral metrics and an open "why?" question (NN/g, 2024). There are no fresh independent NPS or CSAT benchmarks for Ukrainian e-commerce; figures from survey-tool blogs shouldn't be compared with your own.

When to use which

  • CSAT after specific events: delivery, a return, a support chat. It helps find the weak step.
  • NPS once a quarter or half-year among buyers: it shows the trend in attitude.
  • Always add an open question, "Why this rating?". The answers are what show what to fix (Customer surveys).

Common mistakes

  • Comparing your NPS with someone else's "average".
  • Surveying only those who bought and forgetting those who left without buying.
  • Surveys that are too frequent.
  • Changing the formula or scale and comparing with a previous period.
  • Evaluating staff by NPS: it encourages fudging.

FAQ

What is NPS in plain words? The difference between the share of those who would recommend the store and those who wouldn't.

What is a good NPS? There is no universal number: it depends on country and industry (NN/g). Compare with yourself over past periods.

How is CSAT different from NPS? CSAT rates a single experience, NPS the attitude to the store as a whole.

How many responses do I need? Enough that you don't rely on a few opinions; with small samples, look at the text answers, not the number.

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