What the customer feels, is the actual reality. Customer perception is the only reality when we talk about the service quality.
Why is satisfaction so important? There's evidence of strategic links between the level of customer satisfaction and firm's overall performance. Researchers from the University of Michigan found that on average, every 1% increase in customer satisfaction is associated with 2.37% increase in a firm's return on Investment (ROI). Every year thousands of people come into contact with financial service providers. These contacts determine the success of the company. They are the moments when we must prove to our customers that they've made the best choice.
Concepts - quality and satisfaction - are used to substitute each other, though many researchers believe that the quality of service is one of the components of client satisfaction.
Customer Satisfaction Indexing - Identifying the key drivers for success
The aim of Customer Satisfaction Indexing is to measure over time the vulnerability of the company relationships with customers and to ensure that satisfaction is strengthened on key accounts.
Customer Satisfaction Indexing CSI© provides a weighted index of performance measurement, which can be used in continuous research to monitor again the target.
Customer satisfaction is a combined variable that is being influenced by many factors. At the first stage, the main goal of the research approach is to identify these factors, and service quality factors among them, which are important for the customer and influence the satisfaction. This problem is solved through qualitative research. Similar research is conducted with the clients as well as the company staff that provides the service. The second stage contains quantitative research with customers.
Eight Steps to make the model operational:
- Identify key drives for customer satisfaction
- Identify the level of importance of each attribute
- Measure performance on the relevant attributes
- Weigh service factors in relation to their level of importance to the customer
- Apply corresponding satisfaction scores for each respondent
- Calculate the index of customer satisfaction for financial institutions, their branches and separate financial products
- Working out recommendations for integrating research results in organization quality management strategy
- Working out recommendations for integrating research results in a company quality management strategy