QPractice question
Which of the following best describes Customer Satisfaction (CSAT)?
  1. A.Customer Lifetime Value divided by Customer Acquisition Cost — the dominant unit-economics metric for evaluating customer-acquisition efficiency.
  2. B.Systematic experimentation to increase the percentage of visitors who complete a desired action — purchase, signup, lead form.
  3. C.The total cost — sales, marketing, content, technology — divided by new customers acquired. The denominator of the LTV/CAC ratio.
  4. D.A direct measure — typically a 5-point scale — of how satisfied a customer is with a specific interaction, product, or overall relationship. ✓
Why this answer:

Customer Satisfaction (CSAT) is a direct measure — typically a 5-point scale — of how satisfied a customer is with a specific interaction, product, or overall relationship. The other options describe related but distinct concepts in Digital & Analytics — see the deep-dive guide for the full distinction.

How to think about questions like this

Measures specific experience quality more directly than NPS. Questions like this test whether you can distinguish Customer Satisfaction (CSAT) from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.

When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Customer Satisfaction (CSAT) for a worked example you can adapt to your assignment.