What metrics characterize the quality of customer experience? Methodology for measuring customer satisfaction in Russian service companies

Alferov Alexey Head of Accounting and Planning Department, Vyazemsky Dairy Plant LLC

The summary report of the CSI calculation for the wholesale enterprise "Z", selling dairy products, is as follows:

Table 1

Satisfaction scores	Merchandiser	Fact. meaning	Weighted value

*Price*
Product Price Satisfaction Survey
Price level compared to competitors for Group A products
*Product quality*
Marriage rate
Product quality index
*Service*
Deficit rate
Logistics Satisfaction Survey
*Client indicators*
The level of sales dynamics of group A customers
Client database dynamics level


Target

The summary report contains 4 blocks. In the "Price" block, a qualitative assessment of the price is determined by a customer survey. The following question is asked:

This question, as a rule, is included in the general questionnaire (together with surveys of the quality of goods and services) and goods A are evaluated.

The company's price level is determined on a monthly basis by comparison with the main competitor. If the price of the enterprise is lower than the competitor, then this level is determined as 100%, if it is higher, then the calculation formula is:

UCC \u003d C con / C pr, where

UCC - Enterprise price level;

C con. - the price of a competitor;

Pr. — the price of the enterprise.

The calculation form is as follows:

table 2

Interpretation of the indicator: price level for pasteurized milk 1l. enterprise "Z" is 97.6% of the ideal price (the price of the main competitor).

In the "Quality of goods" block, the level of defects is calculated as the ratio of the amount of defects (return of defective products) to the total amount of shipment.

Table 3

The calculation of the product quality index is based on quality assessments for each item (SKU). The summary calculation has the following approximate form:

Table 4

Product name	Assessment result	Weighted score
Milk pasteurized p / p 1 l.
Pasteurized milk bottle 0.9 l.
Sour cream 250 g.
Cottage cheese p / n 0.5 kg.
Cottage cheese by weight

The weight of the goods is determined by the share of sales in the total turnover.

SKU quality assessment on the example of 1L milk. has the following form:

Table 5

Indicator names	Result of evaluation of milk "N"	The result of the assessment of milk "Z"	Weighted grade "N"	"Z" weighted score
Taste and smell of milk
Freshness (date of production)
Naturalness and usefulness of the product
Packaging integrity
Package design
Ease of use of packaging

The quality is compared with the main competitor "N", the choice of indicators and weights are determined by an expert or on the basis of marketing research. The weighted score is calculated as the product of the weight and the result of the score. The final weighted score is equal to the sum of the weighted scores of all indicators.

In the "Service" block, the level of deficit (LE) is calculated by the formula:

UD \u003d T / (D + T) * 100%,

D - shortage of goods in Nat. units

T - turnover in Nat. units

The survey of satisfaction with the logistics service in the same block has the following form:

Table 6

Indicator names	Assessment result	Weighted score
Timeliness of delivery *
Completion according to shipping documents
Availability of sanitary passports for a / m
Agent responsiveness (quick response to additional needs)
Agent Availability by Phone
Acceptable payment terms


* the indicator is determined in case of its absence in the automated accounting system

In the "Customer indicators" block, we determine the indicator of the level of sales dynamics of group A customers. In case of growth, the level of 100% is automatically assigned, if there is a decrease, then the level is considered as the ratio of the current sales volume to the previous one. An example of the calculation is given in Table. 7

Table 7

The calculation of the level of dynamics of the client database has the following form:

Table 8

The client base is understood as the number of active counterparties working with the enterprise in a certain period. The logic is obvious: with the satisfactory performance of the enterprise, the number of recommendations increases, which positively affects the number of new contracts concluded.

The calculation principle is similar to the previous example (see Table 8).

The CSI analysis from Table 1 shows that customer satisfaction falls short of the 95% target. To increase it, it is necessary to reduce prices to an acceptable level, improve the quality of milk (convenience of packaging, increase usefulness and taste properties), and raise service indicators.

So, examples of reports on the calculation of sub-indicators of the customer satisfaction index are given. The methodology can be easily adapted to any enterprise, taking into account the specifics of the business.

The customer satisfaction index (CSI) is probably the most popular of all non-financial key performance indicators (KPIs). In most commercial organizations, it is usually perceived as the most revealing non-financial indicator of future financial performance, based on the belief that the more satisfied customers, the more likely they will remain loyal to the company, and this will lead to financial success.

In other words, measuring customer satisfaction shows how successful an organization is in providing products and/or services to the market.

The key question this metric helps answer is how satisfied are our customers with us?

Moreover, regular research over several decades has shown that attracting new customers is much more expensive than retaining existing ones. Therefore, ensuring customer satisfaction is more financially beneficial.

CSI Measurement Model (Customer Satisfaction Index)

Despite the lack of financial incentives, public organizations also make efforts to ensure that clients feel satisfied. Disgruntled consumers (who compare the performance of the public sector to the highest standards of the private sector) turn their anger on individual officials, who then demand improvements from public sector leaders.

Among the many benefits of measuring customer satisfaction, one of the most useful is that the customer satisfaction score allows business leaders to gain insight into the gap between current product/service performance and customer expectations. This sets in motion actions to improve customer performance.

To collect information, quantitative (objective) and qualitative (subjective) methods are used. Various types of surveys are widely used. For example, customers are often asked about their overall satisfaction with a product/service using a scale from 1 (very dissatisfied) to 5 (very satisfied). Post-service customer surveys are also often conducted, using a combination of ratings, yes/no responses, and qualitative questions.

Finally, many organizations run customer focus groups to get a better (and deeper) view of customer satisfaction levels. It is generally recommended to use a combination of quantitative and qualitative approaches.

Formula

There are many ways to measure customer satisfaction. One of them is the development of a consumer satisfaction index. In essence, CSI is the average between all the components that contribute to customer satisfaction. Since these components can affect satisfaction in different ways, they often have their own weighting factor. The widely used American Consumer Satisfaction Index (ACSI) is a ranking based on an analysis of customer expectations, perceived quality, perceived value, customer complaints, and customer loyalty.

Customer satisfaction is often measured on an ongoing basis. Organizations can evaluate the satisfaction index values quarterly with comments on qualitative data. Organizations may also conduct one annual survey to compare its results with other organizations.

Data source - surveys and interviews with clients.

Large customer satisfaction surveys, especially those conducted by external companies, can be expensive and are usually conducted once a year. Focus group research is also costly. However, other approaches (eg, short questionnaires in hotel rooms) are relatively inexpensive while providing valuable data on customer satisfaction.

Target values

There are many services available for benchmarking customer satisfaction, both within industries and on a more global scale. The US Consumer Satisfaction Index, introduced in 1994, covers many industries/sectors including automobiles, FMCG, hotels, airlines and telecommunications. Participating organizations can evaluate their performance both in comparison with the performance of competitors in the industry, and in comparison with the performance of companies from other industries.

The British Consumer Satisfaction Index covers 13 sectors of the economy, including banks, cars and government services.

Example. As an example of the structure of the consumer satisfaction index, consider the approach underlying the ACSI index (a methodology adopted by companies in the UK and other countries). ACSI uses two interrelated and complementary methods to measure and analyze customer satisfaction: interviewing and econometric modeling. As for interviewing, it is carried out by telephone by professional interviewers among randomly selected clients of companies and organizations.

ACSI analysts use the data to build a custom model that shows ratings for the measured components (customer expectations, perceived value, quality, etc.) and their interdependencies. Each company and organization is assigned a different customer satisfaction score, which is a weighted average of the responses to three satisfaction questions. Since the index has a value from 0 to 100, each company receives an index value in this range. In practice, the index ranges from 50 to 80. Since there is a difference between consumer surveys in different industries, three identical questions are asked when determining the ACSI index for any company. This approach allows for a correct comparison between companies and organizations.

ACSI measures customer satisfaction annually for over 200 companies across 43 industries and 10 economic sectors. The measurements are carried out by the oncoming wave method. During each quarter, data is collected for specific sectors or industries, which are then used to replace data collected 12 months earlier. To obtain the value of the country ACSI received data; are subjected to statistical processing.

The ACSI score is based on responses to three questions on a scale of 1 to 10. The wording of these questions can be found on the ACSI website (www.theacsi.org). Organizations can use these or similar questions in their customer satisfaction surveys to provide industry benchmarking and corporate index targets.

Remarks

The following caveats should be kept in mind when analyzing customer satisfaction. First, organizations can lose business by being too zealous in catering to exceptional customer demands without paying sufficient attention to the cost of such satisfaction. The financial costs of ensuring satisfaction must necessarily be taken into account in any model.

Second, in today's fast-growing markets, customer satisfaction does not always give a complete picture of future customer loyalty and therefore financial results. In some markets, consumers may be extremely satisfied with a product/service, especially driven by a new offering: a customer may be very satisfied with the offer, but go to competitors because their product/service is more attractive - this is especially true, for example, in technology sectors of the economy.

Organizations also need to continuously analyze customer satisfaction and use different approaches to gain a broader and more informed understanding of consumer behavior and preferences. A once-yearly survey is not enough, as it will not show you trends and may be affected by circumstances beyond your control (for example, negative press coverage).

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How CSI Helps Create Better Customer Experiences

CSI1, or customer satisfaction index, for many companies is becoming the main indicator on the basis of which long-term customer relationships are built. There is a relationship between increasing customer loyalty and increasing company revenue.

This approach allows companies to become customer-centric, introduce new products and services in a timely manner, and improve the quality of service. Foreign and Russian companies in the struggle for loyalty began to proactively request feedback from customers at all points of contact. This allows companies to quickly respond and change in accordance with the wishes of customers. The CSI indicator is currently used by many companies in their work, from small cafes and cosmetic companies to large mobile operators and banks.

Sberbank, as part of the implementation of the client-centric model, daily measures CSI in various customer service channels. The bank is closely monitoring that promises to customers are kept, including the availability of the necessary services 24 hours 7 days a week, financial security, problem solving at the time of contact, friendly attitude, qualified service and much more.

The offices of Sberbank posted information that the bank conducts CMC surveys on the quality of service from the number "9000". Messages asking to evaluate the work of the bank are sent out a day or two after the interaction of the client with the bank, and customer satisfaction is measured in points from 1 to 10, where 1 indicates that the client is completely dissatisfied, and 10 is very satisfied. For 6 months of 2016, out of 19 million customers, approximately 1.6 million have already left feedback that is used to improve processes in the bank. Employees of a financial institution understand the importance of CSI indicators. Getting feedback is necessary, the essence of such a communication relationship between the client and the brand is to get to know your customers as closely as possible, thereby building long-term relationships, which in turn will help the company become more client-centric.

Sberbank also pays attention to the Readiness to Recommend Bank Index (NPS2), which is determined using telephone surveys of customers in all segments. The ratio of customer requests to the number of transactions conducted by customers in various channels (CR) is also kept. Separately, the FCR3 indicator stands out - the proportion of requests resolved "here and now" in relation to the total volume of requests received. This data is not just numbers for a report or presentations, but a real mechanism for generating and implementing new services, as well as improving customer service.

Sberbank customers also have the opportunity, without waiting for a call or CMC from the bank, to contact the round-the-clock contact center at any time and leave their feedback. You can call the well-known free short number 900, the same for MTS, MegaFon, Beeline and Tele2 operators4 and available in Russia.

Researching its audience using the above metrics helped Sberbank for the second time in a row become a laureate of the annual Consumer Rights and Service Quality award5 held in the Russian Federation. The bank was awarded for the implementation of the "Golden Rules" of customer service and the launch of a system for collecting feedback from customers via SMS. According to Alexandra Altukhova, Head of the Customer Experience Modernization Department, thanks to metrics, the customer is at the center of all the bank's activities. “We measure the level of satisfaction with our services on a daily basis and evaluate the quality of service in various channels. In June 2016, the NPS index reached 58%. The highest figure is in the youth (63%) and mass segments (59%),” said Alexandra Altukhova.

Today, such metrics are important to implement in every company. As the example of Sberbank showed, this helps to involve employees in more detail in resolving customer issues, motivate the team, identify shortcomings in work in a timely manner and promptly eliminate them, make realistic forecasts for the future, and most importantly, build an open dialogue with customers.

1CSI (Customer Satisfaction Index) - consumer satisfaction index - allows you to identify the value and ratio of price, quality, availability and other factors of the company's work that affect customer loyalty.

2NPS (eng. Net promoter score) - an index for determining the commitment of consumers to a product or company, as well as their willingness to recommend them to other customers. Used to assess readiness for repeat purchases. At Sberbank, the NPS of a particular channel is measured by conducting telephone surveys of customers in all segments. The index was calculated by Sberbank independently on the basis of its own data and customer surveys.

3FCR (English First contact resolution) - the proportion of calls resolved "here and now". Sberbank evaluates the ratio of applications resolved at the moment to the total volume of applications received.

4Number 900 for subscribers of mobile operators MTS, Beeline, Megafon, Tele2 in Russia. Charging is free when you are in your home region and in intranet roaming.

5More details about the award can be found on the website pravpro.ru. In 2015, Sberbank of Russia OJSC won an award in the special nomination “The Most Customer-Oriented Bank”; in 2016 PJSC Sberbank won the award in the nomination "The most client-centric bank" in the category "Financial literacy and openness".

PJSC Sberbank. General license of the Bank of Russia for banking operations No. 1481 dated August 11, 2015.

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CSI Index, or How to Measure Customer Satisfaction

This article will explain why the NPS Loyalty Index is inconvenient to use, explain what to actually ask customers to find out their opinion about the company, tell you how to convince staff to change the way they work.

To assess customer loyalty, companies often use the NPS1 method. Customers are asked if they are willing to recommend the brand to friends and acquaintances. However, from the answers to this question it is difficult to understand what attracts or annoys consumers. Therefore, brands with a negative NPS or a score of 15-20% are unlikely to figure out what needs to be fixed so that disgruntled customers do not go to competitors. To more accurately assess the quality of service and identify specific areas in which the company should improve, use the CSI index.

1 NPS (English net promoter score) - an indicator of customer loyalty. The calculation formula is as follows. Companies ask consumers to rate their likelihood of recommending a brand to friends and family on a scale of one to ten. Those who gave nine and ten points are “supporters”, seven and eight points are “neutrals”, six points and below are “critics”. The Loyalty Index is calculated as the difference between the number of "supporters" and "critics".

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What is the CSI index and how to calculate it

Customer satisfaction index - an index of customer satisfaction that shows how satisfied customers are with the company's products and services. It is believed that with an increase in the CSI index by 1-2%, revenue can increase by 20%. A good value for this indicator is not lower than 95%. The index is used in b2c- and b2b-spheres.

Calculation algorithm. First step: choose an arbitrary number of parameters that you consider important for the company. Most often, they evaluate the attitude of buyers to a product or service, service, operating standards, the attractiveness of advertising and the price of goods compared to competitors.

Second step: ask several clients to rate the company on a five-point scale, where one point means complete disappointment from working with the company, five - delight. Find out from buyers how important this or that parameter is for them - also on a five-point scale. This way you will understand what consumers value in the company. For example, you think: assortment and prices are more important, and customers will answer that they pay attention to the speed of the staff. Interview consumers by phone, in the store immediately after purchase, on the website, by e-mail, etc.

The third stage: analyze the received customer responses. For example, you calculated the CSI Customer Satisfaction Index for the "Service" parameter and received the results:

20% of respondents gave one point (very dissatisfied);
15% - two points (dissatisfied);
20% - three points (neutral);
35% - four points (satisfied);
10% - five points (very satisfied).

A "neutral" rating means: customers are unhappy, but do not want (shy) to put a low score. Therefore, consider such consumers to be disappointed. In this example, 55% of customers are not satisfied with the company's service - a very poor indicator.

At the same time, customers rated the importance of the service at an average of five points. Therefore, the task of the company is to improve the quality of service. Otherwise, customers will go to competitors.

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What options to choose for the survey

Advice. Pay attention to customer satisfaction with the quality of the product and the level of service, the overall impression of working with the brand (speed of service, the amount of effort that the client spends on the purchase). Other parameters depend on the specifics of the company.

To determine which aspects are important to your audience, survey your customers before calculating the CSI Customer Satisfaction Index. Find out what they pay attention to when ordering a service or buying a product. To make people more willing to answer the questionnaire, offer a discount or a gift. Once you have your answers, explore these options. Important: it is better to win the favor of customers when you first contact the company.

How many questions should you ask?

Do not include many questions in the questionnaire: answers should take the client a maximum of five minutes. The number of questions depends on the complexity of the product or service. If you sell food in the b2c segment, seven to ten questions will suffice. In b2b sales, their number can be increased to 15.

Don't put off the survey. If you conduct a survey on the site, it is difficult to verify the reliability and correctness of the information. Therefore, interview customers immediately after talking with company employees. Otherwise, the client will forget their own impressions and provide inaccurate data. For example, car owners come to the car center several times a month. The company made a rule: call after each visit and find out the opinion about the service. In order not to cause customer dissatisfaction with long conversations, employees asked no more than five questions about a particular parameter. So customers did not get tired of answering, and managers did not look intrusive.

The questions changed from time to time. After the first visit, they asked if the problem was solved, how quickly, what was the quality of the service. After the second visit, they found out whether it was comfortable to wait in the salon while the mechanics repaired the car, etc. Clients appreciated such feedback, as they saw that after polls the situation was changing for the better.

On practice. By the time I joined the company, managers had been calling clients for two months and getting an opinion on the quality of services and service - the main parameters for the company. So the statistics on complaints and comments of consumers has accumulated. The CSI index eventually reached 70%. The company was faced with the task of increasing the index to 95%. I analyzed the information I received from clients and identified problem areas. Work on them was built in two stages.

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Stage 1. Dealing with organizational problems

Advice. To effectively deal with problem areas, divide tasks into several blocks. Their number depends on how many parameters you initially assessed using the CSI Customer Satisfaction Index calculation. Start with two or three parameters that customers put in the first place during the survey. So you eliminate the flaws that irritate consumers more than others.

On practice. We made a list of twenty problems that the company could influence the solution. Among them: difficulties with dialing, negligence in work, lack of mutual understanding between masters-acceptors and customers, etc. Clients complained that they spend too much time in the salon and do not understand why the wait is dragging on.

The problems were divided into two groups. The first is organizational, which management can eliminate. The second is service, the solution of which requires careful work with employees and takes more time. This order was chosen on purpose. If we first eliminate the problems, the solution of which depends on the leaders, we will show customers that we listen to their opinion and are ready to change. After that, we will proceed to more laborious tasks. If you do the opposite, buyers will get tired of waiting for changes and be disappointed.

The customers did not trust the mechanics because they did not see the car in the repair area. Having identified this problem, we hung a monitor in the recreation area, and connected cameras in the repair area. At the workplaces of the receiving masters, signs were placed that told with the help of infographics what the waiting time is made up of.

Customers complained that during the repair, which lasts three to four hours, there is nowhere to wait and eat, since the auto center is located on the outskirts of the city. For six months, they equipped a cafe on the territory and did not receive any negative comments in the future.

Stage 2. Solving service problems

Advice. Many managers believe that managers and secretaries are responsible for the client's experience with the firm. However, do not forget: every contact between the buyer and the company is important. Therefore, pay attention to all stages of interaction. To identify problem areas on your own, go through the customer journey and see if you, as a consumer, are satisfied with the quality of the product and service. In addition, convey to all employees the idea that any wrong action will alienate the buyer and negatively affect loyalty.

On practice. After analyzing the responses of customers, we identified the main service problem that 80% of respondents complained about. Customers did not understand the master-acceptors when they explained the reasons for the breakdown, details of diagnostics or repairs, etc. As a result, without fully understanding the situation, customers left dissatisfied and spoke negatively about the work of the auto center. Other pain points were also identified (difficulties with dialing, etc.), which annoyed 20% of consumers. To eliminate these shortcomings, we worked with the company's employees in three steps.

Discussion of problems. I gathered the management and those employees who were affected by service problems - receptionists, secretaries, repairmen. Subsequently, such meetings were held in the company on a monthly basis. She spoke about the difficulties identified, emphasized their importance and outlined the negative consequences for the firm's reputation. After that, we discussed each problem together. It turned out that the master-acceptors did not realize that they did not explain the details of the repair incomprehensibly and that this determines the negative opinion of customers about the service.

I recommend this step for two reasons. First, employees may not understand what they are doing wrong. Therefore, describe in detail: why customers complain. Second, it is important to explain to subordinates how their work affects customer loyalty and business revenue. If this is not done, employees will be indifferent to the instructions of management and will not change the way they communicate with customers.

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Explanations for staff. If you tell employees about changes in service standards, they will internally oppose a management decision that is incomprehensible to them. Your task is to convey to subordinates why you should communicate with customers this way and not otherwise. At the meeting, encourage employees to come up with the solution you want to implement. To do this, make up a series of questions in advance to push colleagues to the correct answers.

I asked the receptionists: “What do you think, if in such and such a situation the client does not understand something, will he ask again?” Employees assured: the car owner will definitely ask an additional question. Then I asked: “And if you don’t understand something in such a situation, ask again?” The masters answered that if they were the client, they would not have asked the representative of the company. Then I said: “If you are in doubt, for example, what kind of infant formula to buy in a store, what will you do?”. Employees replied that they would consult with a person they trust, but not with the seller.

I led the masters to the idea that the next time an uncertain client would not come for advice to an auto center, but would turn to a friend who would advise another company. The employees realized that the approach should be changed, and at my suggestion they came to a decision: to clearly explain to customers the features of the repair, to answer questions simply, to tell what, how and why the master will do with the car.

Competition. Having changed the service standards, we calculated the CSI satisfaction index for each employee, based on comments and feedback on the work of the staff. The lowest indicator for the master-receiver was 50%. To monitor the dynamics of the index, customers were interviewed after each visit. Every month, the results of all employees were posted on the office stand so that the masters could track the quality of their own work and the work of colleagues and could change the approach.

The employee sees that last month customers were 75% satisfied with the amount of time they spent in the auto center, and this month they were only 60% satisfied. Conclusion: the master did not explain in sufficient detail and in an accessible way to customers what a long wait is, or incorrectly estimated the time for servicing a car.

In which he presented a new way of measuring loyalty developed by him. The publication was preceded by several years of research on the correlation between indicators traditionally used to assess loyalty and true loyalty, which manifests itself not in words, but in the behavior of the client: more frequent purchases, higher bills and recommendations of the company to friends.

There is an interesting fact that many studies of behavioral psychology write about: once having made a decision - having chosen some brand, service, tariff plan, store - a person tends not to change his choice, unless something pushes him away. The company puts in a lot of effort to attract a customer: you need to surpass competitors, customer expectations, etc. But, having received a client, the main thing is not to push him away with your actions, that is, to provide client experience, corresponding expectations.

In 2013, the US investigated the reasons why customers changed banks. A more attractive offer from competing banks was the reason for changing banks in only 15% of cases. Another quarter of clients changed banks for reasons beyond the control of the bank: change of employer, place of residence, personal changes that lead people to start using banking services in a different way. In 60% of cases, the reason for opening an account in a new bank was the inconvenience created by the old bank for customers - non-compliance with their expectations.

Identifying and eliminating customer inconvenience (reducing the share of detractors) is the main direction of the company's efforts to increase NPS.

At the same time, it is important for the company to identify and eliminate problems that are significant for the largest part of customers. They may turn out to be problems that are not written about in complaint books, that are not addressed to the call center, or that employees do not know about. Solving the problems that are the loudest shouted about will not affect the overall index if only a few are facing these problems.

After all, loyal customers:

Will recommend you to friends and family.
Will continue to buy from you as long as there is a need.
They will not purposefully look for another brand.
Even competitors' discounts are not so attractive to them.
Most likely, they will be interested in the goods that you offer them.
Technical problems, delivery problems and other temporary difficulties will be treated with understanding.
They will give you feedback if you ask: they will write a review on the product or point out what can be improved.

And in order to manage customer loyalty, it is important to learn how to measure it. This will help us get better and sell more. How to measure loyalty? Now we'll tell you.

#1: Measure NPS Loyalty Index

The NPS Loyalty Index (Net Promoter Score) is the foundation of loyalty measurement. It shows whether customers are ready to recommend your brand to friends. It is easy to measure and just as easy to interpret:

You ask with what probability, on a scale from zero to ten, a client will recommend your brand to their friends: 0 - never and never, 10 - definitely, even today.
Divide the received answers into three groups, in percent. critics- those who put from 0 to 6. They are unlikely to advise you to someone, perhaps even dissuade you. Neutrals- those who put 7 or 8. They seem to be satisfied, but they are unlikely to recommend you. Promoters- those who gave you 9 and 10 points. Here they have the most pleasant impressions of communicating with you, and they will really recommend you to their friends.
Subtract the percentage of detractors from the percentage of promoters and that's the NPS.

Formula for calculating NPS

If the number turned out with a plus sign, then you have more fans than haters. As you can imagine, the higher this number, the better. A negative and zero value indicates that the brand has problems and it is time to do something about it.

The classic NPS ends here, but there is also an extended version - this is when you ask why the client gave such a rating. It allows you to concretize the claims of critics and identify strengths through feedback from promoters.

You can collect data in different ways: send an email newsletter with a questionnaire, arrange an online survey directly on the site or in the application, strain the call center and conduct a mass call, make the robot call customers automatically.

#2: Measure CSI Satisfaction Index

The Customer Satisfaction Index (CSI) measures how satisfied customers are immediately after interacting with a brand. At the same time, CSI implies that customer satisfaction depends not only on the immediate characteristics of the product, but also on how important these characteristics are to him. With the help of the customer satisfaction index, you can find out:

how satisfied consumers are with a particular product;
how satisfied they are with the interaction with the brand in general;
how satisfied they are with interacting with your competitors;
how happy different groups of customers are after interacting with you - and compare these indicators with each other;
how the attitude towards the brand has changed after marketing campaigns or some other actions - for example, after staff training - if you measure the CSI before and after.

CSI is measured in two steps:

First, determine what parameters will measure satisfaction with the product. There can be many of them, and they depend on the specifics of the brand: Internet speed at the provider, print quality at the book publishing house, and so on. But you can take 5P criteria as a basis: Product, Price, Place, Promotion, People - satisfaction with the product itself, price, place, promotion, people. For example, whether the round-the-clock consultant helped or whether the manager who confirmed the order by phone spoke politely.
Data is then collected using face-to-face CAPI and PAPI surveys, telephone CATI and online CAWI. The surveys have two sections: the first one asks how important each of the parameters is for customers, and the second one is how satisfied they are with these parameters. Usually, in both cases, a rating is used on a scale from 1 to 7, but not necessarily. Sometimes the questionnaire includes additional questions that imply a detailed answer (like with NPS, remember?) or allow you to judge satisfaction not with a single product, but with a brand in in general.

Both indexes, NPS and CSI, can be used to evaluate b2b and b2c segments. And it is best to evaluate them in conjunction: this way you can understand whether satisfaction (CSI) leads to loyalty (NPS).

In our country, as a rule, the assessment of brand loyalty is limited to these two indicators. But Western marketers highlight a number of characteristics, briefly about them.

Repurchase Ratio - repurchase ratio

The buyback ratio is the ratio of "repeat" customers to "one-time" ones. The logic is this: a commercial relationship is based on a purchase, so a repeat purchase can serve as a reliable confirmation of customer loyalty. Important: we are talking about the same products - again we will return to the provider or the b2b segment, which, for example, buys raw materials or stationery.

It is calculated differently. If the brand’s business model is based on a subscription, that is, a certain amount is debited from the client every month (quarter, year) for services, you just need to divide the number of clients renewing the contract by those who stop using the services after the first cycle.

For those who work with transactions, you need to consider the average time between the first and second purchase of loyal customers and the standard deviation. In general, it is difficult, but there is a tool for calculating.

Upselling Ratio - sales ratio

The sales ratio is similar to the buyout ratio - the only difference is that we are talking about different products. To calculate it, you need to again divide the “repeated” customers into “one-time” ones. This metric reflects the trust you gain from your customers' previous experience.

The more different the second product is from the first, the greater the brand loyalty. For example, let's take an online clothing store and an online electronics store. The client can buy jeans from the first one once a year, because everything suits him. The second - first buy a smartphone, make sure everything is in order, and buy a laptop already. Upselling Ratio at the second store is higher.

Customer Loyalty Index - another loyalty index

CLI is a loyalty index that shows the same as NPS, plus the ability to repurchase and purchase other products. It contains three questions:

What is the probability that you will recommend us to your friends and acquaintances?
What is the likelihood that you will buy a product from us again?
How likely are you to try our other products and services?

CLI is assessed on a six-point scale, where 1 is “definitely yes” and 6 is “definitely not”. The overall CLI is the average score for three responses. It is believed that this index covers more aspects of loyalty, which means that it is more reliable.

However, in our country they do not like him very much, because, firstly, it takes more time and human resources. Secondly, the issue of reliability is still controversial, because the results of each survey creep in an error, and in the case of CLI, these are errors from not one, but three questions.

NPS in reverse

It's a one-question survey like NPS, but here you ask customers how much they'll miss you if the company goes out of business tomorrow. And still the same ten-point scale: from 1 - “I won’t notice”, to 10 - “I can’t cope without you.”

The survey measures your emotional connection with customers and the value of your USPs. So if there are a thousand other companies in the market besides you doing the same thing, customers are unlikely to lose sleep due to your disappearance.

Customer Engagement Numbers - engagement indicators

Many people think that online engagement metrics are now much more important than NPS and CLI because they are easier to measure and influence, and they are more closely related to revenue and profit.

Guy Nirpaz, CEO and founder of cloud app user acquisition company Totango, suggests using these metrics first:

Activity Time. This is the average time that customers interact with your service per day, week, month, or year, whichever works best for your offering.

Visit Frequency. Shows how often the user returns to your service.

Core User Actions. Analyzes whether the user can experience the main functions of the service.

As you can see, measuring customer loyalty is quite realistic. All the methods that we have written about, one way or another, help to identify the strengths and weaknesses of the brand and suggest where it should move.

In other words, measuring customer satisfaction shows how successful an organization is in providing products and/or services to the market.

The key question this metric helps answer is how satisfied are our customers with us?

CSI Measurement Model (Customer Satisfaction Index)

How to take measurements

Information collection method

Formula

The data source is surveys and interviews with clients.

Target values

The British Consumer Satisfaction Index covers 13 sectors of the economy, including banks, cars and government services.