Customer Satisfaction is key to eCommerce success

The University of Michigan introduced the “American Customer Satisfaction Index (ACSI)” in 1994, a methodology that measures Customer Satisfaction and Purchasing Intent which are both invaluable metrics for multi-channel retailers. The ACSI has become the leading indicator of consumer behavior, measuring the satisfaction of consumers across the U.S. economy

Photo credits: Alexander Rist

From the ACSI.org website:

“The ACSI model is a cause-and-effect model with indices for drivers of satisfaction on the left side (customer expectations, perceived quality, and perceived value), satisfaction (ACSI) in the center, and outcomes of satisfaction on the right side (customer complaints and customer loyalty, including customer retention and price tolerance).”

Larry Freed, President & CEO, ForeSee Results says that:

“The (ACSI) methodology goes well beyond just showing current satisfaction of online shoppers. The ACSI quantifies how improvements to specific website elements would positively affect both satisfaction and desired future behaviors, including likelihood to recommend and purchase in the future (online, offline, next time or next holiday season).

The ACSI methodology has also scientifically proven that Customer Satisfaction is deeply connected to loyalty, word of mouth, ROI, future financial performance, and even stock prices while also accurately assessing current customer attitudes.”

These metrics in combination with the more traditional KPIs such as number of visitors and conversion rates cover the full spectrum of how customers behave before and after their interaction with a brand online and offline.

ForeSee Results uses the ACSI to conduct bi-annual studies of customer satisfaction with the top retailers by sales volume as determined by Internet Retailer. Foresee Results also uses ACSI to assess the impact of satisfaction on two important, but less tangible attitudes: overall satisfaction with the retailer and commitment to the brand.

Here are key findings from the ForeSee Results Spring 2007 study:

• Satisfaction leads to loyalty and future purchase. There’s a tight link between online customer satisfaction and consumers’ propensity to choose a particular retailer above all others the next time they buy similar merchandise.

• It’s not all about price. While people typically rate price the lowest of all the drivers of online satisfaction, it’s rarely the aspect of the shopping experience with the greatest potential to increase satisfaction, purchase and loyalty. Price is only one part of the value equation. For many shopping sites, improvements to the site experience and the brand would have more influence on desired behaviors than lowering prices.

• Online satisfaction drives positive word of mouth recommendations. Satisfied customers are also more likely to recommend the retailer to their family, friends and colleagues.

• Web satisfaction improves shoppers’ satisfaction with the company overall: Online shoppers of the top-performing sites are 15% more satisfied with the retailer overall than are customers of the lower-scoring sites. Improving satisfaction with the online shopping experience has a halo effect on the entire company.