Later this week I’ll be attending the Net Promoter Conference in San Francisco. I’m really looking covering this event for Research Access. Customer satisfaction (or CSAT) measurement is a highly specialized, but vitally important, part of the research world. Yet I think there are many researchers and marketers who aren’t terribly familiar with the ins and outs of customer satisfaction and loyalty measurement. Here is a quick ABC guide to what you need to know about CSAT.
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Satmetrix Satmetrix, known as the Net Promoter Company, is the firm that administers the Net Promoter methodology.
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ACSIThe ACSI (American Customer Satisfaction Index) is a methodology for measuring customer satisfaction. It factors in the following variables: customer expectations, perceived quality, perceived value, customer complaints and customer loyalty.
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TrackingCustomer satisfaction and loyalty are fluid; therefore, most measurement programs involve tracking scores consistently over time.
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IndicatorCustomer satisfaction is a leading indicator of business success; that’s why it’s so important to understand it and take action based on it.
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SCIThe Secure Customer Index is a customer satisfaction measurement methodology developed by D. Randall Brandt. The SCI combines three elements – overall satisfaction, likelihood to continue using the service, and likelihood to recommend.
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FutureThe purpose of customer satisfaction research is to assess current attitudes toward a company in order to predict purchase behavior in the future.
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Answering the Ultimate QuestionAnswering the Ultimate Question is a book by Fred Reichheld which outlines the Net Promoter methodology.
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Calculating Your Net Promoter ScoreThe Net Promoter score is just what the name implies – the net of customers who are “promoters” minus those who are “detractors.” The core Net Promoter question asks on a scale of 0 to 10 how likely a customer is to recommend the company to a colleague or friend. The NPS is calculated by subtracting the percentage of customers who give a score of 0 through 6 (“Detractors”) from the percentage who give a score of 9 or 10 (“Promoters”).
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TruthLike all research, customer satisfaction research is a search for truth. There are different approaches, but the search for truth must continue unabated.
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IndexMost customer satisfaction methodologies yield an index; a single score which is easy for an organization to understand, and, importantly, can be the basis for positive action.
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Out of LuckFirms that ignore customer satisfaction altogether will soon find themselves out of luck.
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Net Promoter Net Promoter is a customer satisfaction measurement methodology, developed by Satmetrix, Bain & Company, and Fred Reichheld. The Net Promoter Score is obtained by asking customers about their likelihood to recommend a company to a friend or colleague. You can use this link to get a discount if you’d like to join me at the Net Promoter Conference in San Francisco, February 1-3, 2012. I hope to see you there!
