CDSAT: Customer Dissatisfaction Metric

What is CDSAT

CDSAT (Customer Dissatisfaction) is a metric used to measure the level of customer dissatisfaction with services, products, or overall experience with a company. This metric can be obtained through various methods including customer surveys, analysis of reviews, complaints, and other forms of feedback.

The purpose of measuring CDSAT is to identify problem areas in a company’s products or services that may lead to customer dissatisfaction, aiming to eliminate or improve them. Improving CDSAT scores can help increase customer satisfaction, loyalty, and positive brand perception.

Companies often use CDSAT alongside other metrics such as NPS (Net Promoter Score) and CSAT (Customer Satisfaction Score) to get a more comprehensive understanding of customers’ experience and perception of their products and services.

What is CDSAT used for

CDSAT is used in several key areas to improve business processes and increase customer satisfaction. The main goals of using CDSAT are:

1. Identifying problem areas. CDSAT helps companies pinpoint specific aspects of products, services, or customer interactions that cause dissatisfaction, including product quality, customer service efficiency, usability, and other factors.
2. Improving product and service quality. By understanding what causes dissatisfaction, companies can take targeted actions to enhance their offerings, such as improving functionality, raising service standards, or simplifying customer interactions.
3. Increasing customer satisfaction and loyalty. Reducing dissatisfaction directly boosts satisfaction and loyalty. Satisfied customers are more likely to continue using services and recommend the company to others.
4. Strategic planning and decision-making. Analyzing CDSAT data assists management in making informed strategic decisions related to product development, marketing strategies, customer service improvements, and other business aspects.
5. Monitoring and tracking changes. Regular CDSAT measurement allows companies to track the effectiveness of implemented changes and adjustments, understanding how well dissatisfaction issues are being addressed.
6. Competitive advantage. Companies actively reducing customer dissatisfaction and improving satisfaction can gain a market edge. Happy customers often become loyal brand advocates, strengthening reputation and attracting new clients.

How is CDSAT calculated

CDSAT can be calculated using a simple formula based on customer feedback indicating dissatisfaction. The basic formula is:

CDSAT = (Number of dissatisfied customers / Total number of surveyed customers) × 100%

Where:

• Number of dissatisfied customers is the count of customers who expressed dissatisfaction, for example, by rating below a certain threshold in a satisfaction survey.
• Total number of surveyed customers is the total number of customers who participated in the survey.

Example calculation:

Suppose a company conducted a satisfaction survey with 500 customers about a new product. The survey used a scale from 1 to 5, where 1 and 2 indicate dissatisfaction.

Survey results:

• 40 customers rated “1.”
• 70 customers rated “2.”
• The remaining customers rated above “2.”

The number of dissatisfied customers (those rating 1 or 2) is 40 + 70 = 110.

Applying the formula:

CDSAT = (110 / 500) × 100% = 22%

This means 22% of surveyed customers expressed dissatisfaction, indicating the share of dissatisfied customers among respondents.

This calculation helps the company identify dissatisfaction levels and serves as a starting point for analyzing causes and developing strategies to reduce dissatisfaction.

General methodology for CDSAT surveys

The general methodology for conducting CDSAT surveys involves several key steps aimed at measuring customer dissatisfaction and identifying improvement areas. The main steps are:

1. Clearly define what you want to learn before starting the survey. This may include general questions about product or service quality, satisfaction with specific aspects of the customer experience, or understanding reasons for dissatisfaction.
2. Create a questionnaire with questions that reveal customer dissatisfaction levels. Questions should be clear and specific to avoid confusion and obtain accurate data. Include a mix of question types: open-ended, multiple choice, rating scales (e.g., 1 to 5 or 1 to 10).
3. Determine who to survey. This could be all customers, new customers, users of a specific product or service, or customers who contacted support.
4. Choose distribution channels: email, website, social media, internal feedback systems, etc. Ensure the survey is easy to access and convenient for your target audience.
5. Collect responses and analyze them to identify key issues and dissatisfaction trends. Focus on frequently mentioned problems and high dissatisfaction areas.
6. Based on data analysis, define actions to improve products, services, and overall customer experience. Develop a detailed action plan with deadlines and responsible persons.
7. Conduct CDSAT surveys regularly to monitor changes in dissatisfaction levels and effectiveness of improvements. This helps stay attuned to customer needs and expectations.

What is a normal CDSAT level?

“Normal” CDSAT levels vary widely depending on the industry, product or service type, target audience, and many other factors. It is important to remember that any level of dissatisfaction signals potential for improvement. Some guidelines for interpreting CDSAT are:

• Industry standards. Compare your CDSAT with industry benchmarks. Acceptable dissatisfaction levels vary across sectors. In highly competitive industries with high customer expectations, even a small percentage of dissatisfied customers may require attention.
• Context. Consider your business context and the nature of customer interactions. In complex or high-tech sectors, some dissatisfaction may be inevitable due to high expectations or product complexity.
• Goals and strategies. Align CDSAT levels with internal goals and customer experience strategies. If aiming to lead in customer satisfaction, even low CDSAT values may call for further improvements.
• Trend analysis. Tracking CDSAT changes over time is often more informative than absolute values. Continuous reduction in CDSAT indicates successful efforts to improve customer satisfaction, even if absolute levels remain high by industry standards.
• Internal comparisons. Compare CDSAT across products, services, or departments to identify areas needing the most attention and improvement.

In conclusion, there is no universal “normal” CDSAT level, as each company and industry faces unique challenges. The key is to use CDSAT as a tool for continuous improvement and strive to lower the percentage of dissatisfied customers, thereby increasing overall satisfaction and loyalty.

How to improve the CDSAT metric

1. Analyze CDSAT data to identify specific causes and areas of customer dissatisfaction. Review customer feedback to understand context and specific issues.
2. Regularly collect and analyze customer feedback through surveys, reviews, and direct communication. Establish transparent and convenient feedback channels.
3. Address identified product or service shortcomings based on feedback. Invest in R&D to improve quality and functionality.
4. Train staff in best customer service practices, including quick and effective response to inquiries and complaints. Ensure customer support is accessible, efficient, and friendly.
5. Simplify and optimize purchase, return, and service processes to make customer interaction as convenient as possible. Implement automation where feasible to speed up and streamline processes.
6. Be transparent in policies, pricing, and processes. Honesty builds trust and reduces dissatisfaction. Keep customers informed promptly about changes that may affect them.

Remember, improving CDSAT is an ongoing process that requires constant attention to customer needs and expectations, as well as readiness to adapt and change.