The document discusses the introduction of the South African Customer Satisfaction Index (SAcsi), which aims to measure customer satisfaction levels across various industries in South Africa. Some key points:
- SAcsi was created in partnership with the global leader in customer satisfaction measurement, the American Customer Satisfaction Index (ACSI), to provide a national indicator of customer evaluations.
- It has begun measuring satisfaction levels in various industries such as telecommunications, banking, retail, and is expanding to cover all major industries.
- Preliminary results show a relationship between higher customer satisfaction scores and greater willingness from customers to purchase additional products/services.
3. Online survey with random sample of consumers aged 18+
USA Canada Mexico France Germany Italy UK Netherlands Australia India
1018 1060 1002 1001 1000 1000 1016 1007 1021 1002
2011 Global Customer Service Barometer -
Amex
6. “The literature in marketing, retailing and
service management historically has NOT
considered customer experience as a
separate construct. Instead researchers
have focused on measuring customer
satisfaction and service quality.”
Source: Verhoef, Peter C., Katherine N. Lemon, A. Parasuraman, Anne Roggeveen, Michael Tsiros and Leonard A.
Schlesinger (2009), “Customer Experience Creation: Determinants, Dynamics and Management Strategies,” Journal
of Retailing, 85 (1), 31–41
A:
7. Where Brand gives the promise, CEM is the
physical delivery of that promise and is vital in
an economy where a brand is increasingly
built on value delivered rather than product
features
Customer Experience in Perspective
8. Customer Experience in Perspective
Brand
Customer
Experience
Management
Making
Promises
Enabling
Promises
Keeping
Promises
9. The Myth of Customer Loyalty
Customer Satisfaction is “worthless”, but
Loyalty is “priceless”
10. Customer Loyalty without Satisfaction is a
contradiction of the basic mechanics of the
free market system, and violates the cause-
and-effect relationship between satisfaction
and loyalty
The Myth of Customer Loyalty
13. The South African Customer Satisfaction Index is a
national economic indicator of customer evaluations
of the quality of products and services available to
household consumers in South Africa
14. Source: FCI Group., 2007b. The American Customer Satisfaction Index (ACSI) Technology: A
Methodological Primer. pp.1–37.
Perceived
Overall
Quality
Customer
Expectations
Perceived
Value
Customer
Satisfaction
(ACSI)
Customer
Complaints
Customer
Loyalty
Created the National Index with the Global
Leader
15. Some ACSI findings over the past 16 years
CS is a leading indicator of financial performance
Changes in CS affect the general willingness to buy
Changes in CS correlate with changes in GDP
growth
Quality plays a more important role than price
16. Satisfaction drives Value
Average Market Value Added (MVA): High and Low ACSI Frims
Source: FCI Group., 2007b. The American Customer Satisfaction Index (ACSI) Technology: A
Methodological Primer. pp.1–37.
17. Creating a National Index with the Global
Leader
Mexico
Columbia
United Kingdom Sweden
Turkey
Korea
Malaysia
Singapore
Dominican
Republic
18. What will SAcsi do for YOU?
Economic
Returns
Economic
Stability
Economic
Link Economic
Welfare
Economic
Output
20. SAcsi Governance
Founding Sponsors
Board of Advisors
Academic Support
Data collection
Global Partnership
License
CCRM
Prof. Y Jordaan
Prof. A. Schreuder
Subscribers
Non-subscribers
21. SAcsi has taken off…
2014
The entire South
African economy
with all its 48
Industries
The Future
Q1 2013
Petroleum Service
Stations
Airlines
Fast Food Outlets
Health Insurance
Mobile Handsets
Supermarkets
In Process
Q4 2012
Mobile Telecoms
Networks
Mobile Telecoms
Stores
Banking
Gaming
Life Insurance
Short-term
insurance
Done
24. Industry Growth Inclination
4%
2% 2% 2%
3%
8%
5% 7%
12% 10%
45%
-10%
0%
10%
20%
30%
40%
50%
0 1 2 3 4 5 6 7 8 9 10
Likelihood to purchase additional products
and/or services
Growth inclination is an indictor of customers’ apatite for
more products and/or services from the specific
company under evaluation. The measure is based on the
following question, and rated on a 0 – 10 point scale:
“How likely is it that you would use / purchase
additional products and services from
(brand/company)?”
From the figures, we can surmise that there is a relatively
large apatite for more offerings.
25. Satisfaction relative to growth
0%
10%
20%
30%
40%
50%
0 1 2 3 4 5 6 7 8 9 10
Score Given on a 0 - 10 Point Scale
Likelihood to purchase additional products and/or services Overall Satisfaction Score
Whilst there is little differentiation on a SAcsi level (Satisfaction Index) between the 3 companies measured, the above
trend clearly illustrates the importance of keeping one's customers satisfied. The trend illustrates that the more satisfied
a customer is, the greater their apatite for additional products and services. Furthermore, the overall industry trend
shown above is in line with the individual company trends.
26. CENTIMent index
Great
Good
OK
Fair
Bad
The CENTIMent index is based on an open ended
verbatim question, simply asking respondents to relay
the experiences that they have had with a company.
The question is kept as open and non-specific as
possible in order to solicit a wide variety of responses
The index is powered by the Clarabridge Sentiment
Scoring engine, which automatically understands
negation, conditional sentiment, and other linguistic
nuances to provide an accurate context. It uses
advanced linguistic algorithms to determine and index
evidence of sentiment and tone in customer
comments.
The sentiment score is indexed on a normalized minus
five (-5) to plus five (+5) scale. The higher the score, the
greater positive sentiment.
27. Contextualising CENTIMent Index
-1.35
-1.51
-1.3
-0.27
-0.11
0.27
0.5
1.02
1.89 1.9
2.12
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
0%
10%
20%
30%
40%
0 1 2 3 4 5 6 7 8 9 10
Overall Satisfaction Score Given
Overall Satisfaction Score Sentiment Score Poly. (Overall Satisfaction Score)
*A similar trend is observed across all the companies measured
28. “MTN, FNB claim top
spots in customer
satisfaction index”
“Making the world a less irritable
and more profitable place, the
SAcsi has arrived with key insights
into our mobile and banking
industries”
Long-term customer relationships are characterized by efficiency, low risk and predictable income. Sellers compete for buyers’ preference and satisfaction. Winners are rewarded by lower cost and lower risk by returning customers
Satisfaction has a STRONGER effect on financial performance than Loyalty. Reason: the increased revenue generated by improved loyalty is not offset by the higher costs of the Loyalty programs (unless generated by customer satisfaction) – e.g. Frequent flyers being members at all frequent flyer loyalty programsP(Repeat business by Satisfied customer) > P(Repeat business by Dissatisfied customer)Loyalty is different – it is a behaviour and thus a consequence of satisfactionSellers can manage causes NOT consequencesLoyalty is a consequence of:Customer SatisfactionSwitching barriers from one supplier to anotherPrice
The realities of our current economy present challenges forpolicymakers, businesses, and consumers alike, as markets reachbeyond borders and across cultures. The South African CustomerSatisfaction Index (SAcsi) has emerged in response to the need for aNational Customer Satisfaction Index in the South African economy.
Satisfaction has a STRONGER effect on financial performance than Loyalty. Reason: the increased revenue generated by improved loyalty is not offset by the higher costs of the Loyalty programs (unless generated by customer satisfaction) – e.g. Frequent flyers being members at all frequent flyer loyalty programsP(Repeat business by Satisfied customer) > P(Repeat business by Dissatisfied customer)Loyalty is different – it is a behaviour and thus a consequence of satisfactionSellers can manage causes NOT consequencesLoyalty is a consequence of:Customer SatisfactionSwitching barriers from one supplier to anotherPrice
Economic returns: Possible to link customer satisfaction to economic returns via correlation with financial performance indices.Economic stability: Help determine what percentage of price increases represent quality improvement and what are caused by inflation.Economic link: Link between the quality of economic output and productivity measuresEconomic welfare: An indication of economic well being.Economic output: Quantifies the value that customers place on products and services & driving quality improvement.
Satisfaction has a STRONGER effect on financial performance than Loyalty. Reason: the increased revenue generated by improved loyalty is not offset by the higher costs of the Loyalty programs (unless generated by customer satisfaction) – e.g. Frequent flyers being members at all frequent flyer loyalty programsP(Repeat business by Satisfied customer) > P(Repeat business by Dissatisfied customer)Loyalty is different – it is a behaviour and thus a consequence of satisfactionSellers can manage causes NOT consequencesLoyalty is a consequence of:Customer SatisfactionSwitching barriers from one supplier to anotherPrice
Centre fro Communication and Reputation Management