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Why CSAT Scores Lie: The MSP Feedback Framework That Works
One of the most confusing conundrums you’ll face is when what seems to be a happy customer, averaging 4.2 out of 5 on CSAT, decides they are leaving and you wonder how you missed this.
Here's the uncomfortable truth: CSAT scores can lie.
Not intentionally, of course. But when you're only measuring customer satisfaction at ticket closure, you're missing the bigger picture of relationship health. You're taking the temperature when someone's got a headache, not monitoring their overall wellbeing.
You end up falling into the classic feedback trap - measuring the wrong things, at the wrong time, in the wrong way – you’re collecting data, but not creating actionable intelligence.
Feedback Theatre
Most MSPs treat feedback like compliance - automate sending a survey after ticket closure, collect scores, report averages, think they're doing great with 4+ scores, and the jobs done. That's feedback theatre.
This approach has four critical flaws:
- Timing bias - You're only measuring satisfaction when customers need help, not when they're happy
- Recency effect - Last interaction dominates perception, masking underlying relationship issues
- Response fatigue - Customers stop responding to constant surveys, skewing your data
- No action trigger - High averages hide individual relationship problems that need immediate attention
The result? MSPs with "good" feedback scores who are blindsided when customers leave, or who miss early warning signs that could have been addressed before relationships deteriorated.
Understanding Your Feedback Tools: NPS vs CSAT
Before diving into the framework, let's clarify the difference between your two most important feedback metrics - because using them wrong can be worse than not using them at all.
Customer Satisfaction (CSAT): The Moment Measure
What it measures: Satisfaction with a specific interaction or service
When to use: After incidents, project completions, or specific service touchpoints
Question format: "How satisfied were you with today's support?"
Scale: 1-5 (Very Dissatisfied to Very Satisfied)
Insight: Tells you how well you performed in that moment
Net Promoter Score (NPS): The Relationship Measure
What it measures: Overall relationship health and loyalty
When to use: Quarterly or bi-annually for relationship assessment
Question format: "How likely are you to recommend our services to a colleague?"
Scale: 0-10 (Not at all likely to Extremely likely)
Insight: Tells you the strength of your overall relationship
The Critical Difference
CSAT is like checking someone's pulse - it tells you how they're feeling right now about a specific experience. You might get a 5/5 CSAT score for resolving a server outage quickly, but that doesn't mean the customer is happy about having three outages this month.
NPS is like a full health check-up - it tells you the overall state of the relationship. A customer might give you good CSAT scores for individual incidents but still score you low on NPS because they're frustrated with recurring issues or poor communication.
Here's the key: Use CSAT to measure service delivery performance. Use NPS to measure relationship health and predict retention risk.
Beyond CSAT: Right Data, Right Time, Right Actions
Effective customer feedback isn't about collecting more data - it's about collecting the right data at the right time to drive the right actions.
Here's the framework that mature MSPs use:
Transactional Feedback (Immediate)
CSAT - Satisfaction with specific interactions
Effort Score - How easy was it to get help?
Resolution Quality - Did we actually fix the problem?
Frequency: Some folks say after P1/P2 incidents only and not every ticket; I reckon it should be after every Incident and Service Request. The right frequency will be down to you.
Relationship Feedback (Periodic)
Net Promoter Score (NPS) - Would you recommend us?
Service Quality Assessment - How well do we deliver overall?
Communication Effectiveness - Do you feel informed and heard?
Frequency: Quarterly for all customers
Strategic Feedback (Annual)
Business Impact Assessment - How do our services affect your business?
Future Needs Analysis - What challenges are coming up?
Competitive Positioning - How do we compare to alternatives?
Frequency: Annual business reviews with key stakeholders
The Magic Metrics: What to Track and Why
Relationship Health Indicators
Net Promoter Score (NPS)
Green: >50 (Customer advocates)
Amber: 0-50 (Satisfied but not loyal)
Red: <0 (Relationship at risk)
Response Rate Trends
Green: >60% response rate
Amber: 40-60% response rate
Red: <40% response rate (Engagement declining)
Customer Satisfaction (CSAT)
Green: >4.0/5.0 (Strong satisfaction)
Amber: 3.5-4.0/5.0 (Acceptable but room for improvement)
Red: <3.5/5.0 (Poor satisfaction - immediate attention required)
These measures will give you a good starting point, and you can always amend them to meet your objectives.
The SIP Connection: When Feedback Triggers Action
Here's where feedback becomes powerful: when it automatically triggers Service Improvement Plans (SIP) for “red-flag customers” (where the relationship is at risk).
The image below shows some example metrics you may want to monitor to identify whether you need to place a call to your customer and understand what is going on for them, or whether you need to trigger a SIP. We’ll go deeper into SIPs in our next Insight.
Implementation: Start Simple, Build Smart
Month 1-2: Foundation
- Implement basic CSAT for Incidents and Requests
- Set up quarterly NPS for top 20 customers
- Create feedback response process - who reviews, when, what actions
Month 3-4: Expansion
- Add Customer Effort Score to incident surveys to identify those customers who are easier to work with
- Implement feedback trend tracking - look for patterns
- Create SIP trigger criteria based on your baseline data
Month 5-6: Optimisation
- Add annual strategic feedback for key accounts and when a new customer onboards, immediately add their review dates to the calendar
- Automate SIP triggers where possible
- Create feedback-driven improvement loop - what you learn drives what you change
Proactive Relationship Management
Most MSPs are reactive with feedback - they collect it, file it, and only act when relationships explode. By implementing systematic feedback collection with clear action triggers, you're building:
Early Warning System - Spot relationship issues before they become crises
Customer Loyalty - Customers feel heard and see you acting on their input
Service Excellence - Continuous improvement based on actual customer needs
Competitive Differentiation - Most competitors don't do this systematically
Common Pitfalls to Avoid
Survey Fatigue - Don't survey every interaction. Be selective and strategic.
Analysis Paralysis - Don't wait for perfect data. Act on clear trends and obvious issues.
Feedback Without Action - Never ask for feedback unless you're prepared to act on it.
One-Size-Fits-All - Tailor your feedback approach to customer size and relationship depth.
What Happens Next: From Feedback to Action
So you've implemented systematic feedback collection and you're spotting relationship warning signs early. Brilliant! But here's where most MSPs stumble: they don't know what to do next.
You've got the early warning system working - your NPS scores are flagging at-risk relationships, your CSAT trends are showing service delivery issues, and your response rates are declining for certain customers. The alerts are flashing red.
Now what?
This is where the magic happens: transforming feedback intelligence into structured improvement processes that actually save relationships and prevent future problems.
In our next insight, we'll explore the link between two critical processes every mature MSP needs:
Continual Service Improvement (CSI) - Your internal improvement engine that prevents the problems causing poor feedback in the first place
Service Improvement Plans (SIP) - Your customer relationship recovery tool that turns feedback warnings into relationship-saving action plans
Because collecting feedback is only half the battle. The real competitive advantage comes from having systematic processes that turn those insights into measurable improvements - both internally and for your customers.
The connection? Great feedback systems tell you when to act. CSI and SIP frameworks tell you how to act.
Finally…
Customer feedback isn't about collecting compliments or ticking compliance boxes. It's about creating an early warning system that helps you save relationships before they're lost.
CSAT scores are just the beginning. Real relationship intelligence comes from systematic feedback collection, trend analysis, and automated action triggers that turn insights into improvements.
Your customers are already giving you feedback - through their behaviour, their responses (or lack thereof), and their renewal decisions. The question is: are you listening systematically enough to act before it's too late?
Next up: We'll show you exactly what to do with those feedback insights through structured CSI and SIP processes that transform warning signs into competitive advantages.