FIND OUT HOW SATISFIED YOUR CLIENTS

CONSUMER LOYALTY AND SATISFACTION RESEARCH


It is a well-known fact that attracting a new client can cost 5-10 times more than retaining an existing one. These numbers only indicate that companies should devote enough time to analyzing the satisfaction of existing customers, because the more satisfied customers are with the company’s services, the more likely they are to remain loyal, and this will lead to financial success in the future.

Important tools for measuring satisfaction indicators are:

  • CUSTOMER LOYALTY INDEX (NET PROMOTER SCOPE – NPS)
  • CUSTOMER SATISFACTION INDEX (CSI)

Both indices are calculated separately and correlate with each other.

CUSTOMER LOYALTY INDEX (NPS)


The NPS Index (also the Index of Willingness to Recommend) is a study of the customer loyalty indicator based on the results of the visit. The NPS index shows the degree of satisfaction of your customers: how satisfied they are, that they will recommend you to their environment. It is important to calculate NPS on a regular basis in order to have an idea of ​​customer sentiment and changes in it.

NPS or Consumer Loyalty Index is a relatively young research method. The concept was pioneered by Frederick Reicheld, who published it in the Harvard Business Review in 2003 as the study titled One Number You Need to Grow. In his research, the author insisted that in order to find out about the attitude of customers towards the company, it is enough to ask just one question: “What is the probability that you will recommend the company / product / brand to your friends / colleagues?”. After collecting and analyzing the answers, you can calculate the index, which consists of several steps:

  • Consumers are asked to rate on a ten-point scale the likelihood that they will recommend a company / product / brand to their friends / colleagues;
  • On the basis of the received assessments, all consumers are divided into three groups: Those who gave nine and ten points – “promoters”, seven and eight points – “neutrals”, six points and below – “critics”;
    The NPS index is calculated as the percentage difference between the number of “supporters” and “critics”.

The rating range is from -100 to +100, where NPS 100 is the best scenario, in which all your customers are “supporters” of the brand, and NPS -100, respectively, is the worst.

CUSTOMER SATISFACTION INDEX (CSI)


The Customer Satisfaction Index is a type of marketing tool that allows you to assess how satisfied customers are with the company’s products and services. Allows you to conduct a broader study of the quality of service and identify specific areas in which the company needs to improve its performance.

It is believed that if the CSI index grows by 1–2%, revenue can increase by 20%. An excellent value is 95% and above. The index is used in the b2c and b2b spheres.

Research using this technology is carried out by many research agencies in Russia and abroad. The assessment of customer satisfaction using the index can be applied in various industries: in IT, finance, construction, etc.

ALGORITHM FOR CALCULATION OF THE CSI INDEX


  1. To survey the company’s clients, questionnaires are worked out and compiled to get the most complete picture of satisfaction. Most often, the study is focused on the attitude of buyers to a product or service, service, operating standards, the attractiveness of advertising and the price of goods compared to competitors. The questionnaire should not consist of a large number of questions, at the same time, their number should be sufficient to obtain extremely objective characteristics of the quality of a product or service;
  2. A survey is conducted among clients, where the client must rate the company on a five-point scale, where one point is complete disappointment with the company, five is delight. Consumer research can be done in a variety of ways: by phone, in-store immediately after purchase, on-site, by email, and so on;
  3. Data processing and analysis. Based on the responses received, the strengths and weaknesses of the quality of services and services (what consumers value in the company and what they dislike) are identified and solutions are proposed to increase the index. Additional data can also be obtained from a qualitative analysis of customer complaints and claims. For companies wishing to conduct customer satisfaction and loyalty surveys, Profpoint offers various types of surveys, including an on-line survey using a prize draw to generate a large number of responses. This method will allow the company to constantly receive feedback from its real customers with minimal research costs.