What is CSAT (Customer Satisfaction Score)?

Definition

Customer Satisfaction Score (CSAT) is a metric that measures how satisfied customers are with a specific interaction, product, or service. It is typically measured through post-interaction surveys using a scale (1-5 or 1-10), with the score calculated as: CSAT = (Number of Satisfied Responses / Total Responses) x 100. "Satisfied" is usually defined as ratings of 4-5 on a 5-point scale.

Why CSAT (Customer Satisfaction Score) Matters for Insurance

In insurance, CSAT directly impacts retention, referrals, and regulatory compliance. Medicare Advantage plans use Star Ratings (which incorporate CSAT-like metrics) to determine rebate amounts—meaning customer satisfaction literally affects plan profitability. For agencies, low CSAT correlates with higher churn and lower lifetime value.

Key Points

• Measured via post-call surveys (typically 1-5 scale)
• Industry benchmark for insurance: 78-85%
• Correlates strongly with retention and referral rates
• Impacts Medicare Star Ratings for MA plans
• Should be measured at the agent, team, and organization level