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

Insurance CSAT Benchmarks

Insurance call centers typically report CSAT between 78–85%, with top performers exceeding 90%. Medicare Advantage plans tie Star Ratings to customer experience metrics, so CSAT directly affects plan rebates and competitiveness. A 5-point CSAT improvement can correlate with 10–15% higher retention in some segments.

Survey Methodology: Post-Call IVR vs. Email

Post-call IVR surveys capture feedback immediately after the call, typically with 15–25% response rates. Email surveys sent within 24 hours often achieve 5–15% response but may skew toward more engaged (or frustrated) customers. IVR tends to yield higher volume and faster data; email can allow more detailed feedback. Many centers use both and compare results.

CSAT and Retention Correlation

Research consistently shows that customers who rate interactions highly are more likely to renew policies and refer others. Low CSAT scores often precede churn. Tracking CSAT by agent, product line, and call type helps identify improvement opportunities before retention suffers. Pair CSAT with FCR and AHT for a complete view of call center performance.

For benchmarks and improvement strategies, read our Call Center KPIs for Insurance guide. Explore our Speech Analytics and Sentiment Analysis for Calls solutions.