AnnArborBuenosAiresChristchurchFrankfurtKualaLampurLondonMadridMelbourneMilanParisPortoAlegreStockholmZurichNationalCustomerSatisfactionIndicesbyClaesFornellDonaldC.CookProfessorandDirector,NationalQualityResearchCenterUniversityofMichiganBusinessSchool“Aneconomycannotbedescribedbyaddinguphowmanytonsofrebaritmakes,howmanypassengermilesofairtravelitlogs,howmuchwooditswoodchuckschuckperhour.Allthesethingscount(andwecountthem),butinthefinalanalysiswhatmattersishowwellaneconomysatisfiesitscustomers…”(ThomasStewart,Fortune,1995)TheMeasuredEconomyIncludes…Pig-ironproductionCoalproductionRailroadoperatingincomeRailfreightEtc.…TheEconomyIsChangingHowWeMeasurePerformanceisAlsoChangingTheOldWorldTheNewWorld•Massproductionandconsumptionofcommodities•Increasinglycustomizedgoods,servicesandinformationProductivityProductivityandCustomerSatisfactionImplicationsforCompaniesEconomicAssetsTangibleIntangibleEconomicReturnCustomerAssetManagementisBuiltontheFollowingPrinciplesSatisfiedcustomersareaneconomicassetthatyieldsfuturecashflowsThesecashflowscanbecalculatedasdiscountedpresentvalueCoststogrowthecustomerassetbaseareinvestmentsSkillfulmanagementofthecustomerassetisessentialforlong-termprofitabilityCustomerAssetValueinGlobalMarketsECSI(Europe)KCSI(Korea)MCSI(Malaysia)ACSI(Australia)ACSI(Argentina)BCSI(Brazil)MCSI(Mexico)CCSI(Canada)ACSIGlobalCompetitionTheRoleofIntangiblesMajorReasonsforaNationalIndexofCustomerSatisfactionQualityofeconomicoutputisessentialtolivingstandardsCustomersatisfactionisaleadingindicatorofcompanyeconomicperformanceCustomersatisfactioncontributestoeconomicgrowthandjobcreationNecessarymeasureforCPI,productivity,andultimately,GDPSomeImportantEconomicIndicatorsandaNEWOne!GDPProductivityBalanceofTradeEmploymentConsumerPriceIndexIndexofLeadingIndicatorsEconomicPolicyFinancialMarketsNationalEconomy,SectorsandIndustries*$665B$582B$472B$392B$277B$106B$62B*Thesizeofeachofthesevensectorsisshownaboveasthepercentofthetotal1994grossdomesticproduct.SalesfiguresreflectthetotalsalesfortheselectedU.S.firms.Thetotalsalesoftheselectedfirmsare51%oftheGDPforthesesevensectorsand38%ofthenationalGDP.ManufacturingNondurables(SIC2)8.2%ManufacturingDurables(SIC3)9.4%Transportation/Communications/Utilities(SIC4)8.8%Retail(SIC5)9.3%Finance/Insurance(SIC6)6.8%Services(SICs7,8)19.6%PublicAdministration/Government(SIC9)12.6%Apparel/athleticshoesApparel/sportswearBeverages/beerBeverages/softdrinksFoodprocessing•meat•dairy•cannedgoods•cereal•bakedgoods•confectionaryGasolinePersonalcareandcleaningproductsPublishing/newspapersTobacco/cigarettesAutomobiles,vansandlighttrucksConsumerelectronics/TVandVCRHouseholdappliancesPersonalcomputersAirlinesBroadcasting/TVParceldelivery&expressmailTelecommunications/localphoneTelecommunications/longdistancephoneU.S.PostalServiceUtilities/electricserviceDepartmentanddiscountstoresRestaurants/fastfood,pizza,andcarryoutSupermarketsCommercialbanksLifeinsuranceInsurance/personal,property,homeowner’sandautomobileHospitalsHotelsandmotelsMotionpicturesSolidwaste/centralcity(metro)Solidwaste/suburban(metro)InternalRevenueServicePolice/centralcity(metro)Police/suburban(metro)CoverageSevensectorsFortyindustriesTwoHundred+companiesandagencies$2.7trillionsales(U.S.companies)TheRespondentsApproximatelyonemillionsampledrandomlyScreened:RecentexperienceasacustomeroftheselectedcompaniesApproximately250,000completedinterviewsCustomerExpectationsACSIModelPerceivedServiceQuality•Satisfaction•Comparisonw/Ideal•Confirm/Disconfirm•ExpectationsPerceivedOverallQualityPerceivedValueCustomerComplaintsCustomerLoyalty•RepurchaseLikelihood•PriceTolerance•(ReservationPrice)•Overall•Customization•Reliability•Overall•Customization•Reliability•PriceGivenQuality•QualityGivenPricePerceivedProductQuality•Reliability•Customization•Overall•Reliability•Customization•Overall•ComplaintBehaviorCustomerSatisfaction(ACSI)ACSICompaniesIncluded…77Apparel74Athleticshoes81Beer77Cigarettes81FoodProcessing78Gasoline69Newspapers82PersonalCare83PetFood83SoftDrinks79Automobiles80ConsumerElectronics80HouseholdAppliances70PCs,Printers67Airlines62Broadcasting/TV73ElectricService80ExpressDelivery75Telecommunications69U.S.PostalService74DepartmentStores74DiscountStores66Restaurants,FastFoods74Supermarkets72Banks/Commercial75Insurance/Life77Insurance/Property67Hospitals71Hotels71MotionPicturesGarbageService73CentralCity77SuburbanPolice63CentralCity67Suburban54IRSManufacturingDurables78.4Transportation/Communications/Utilities71.6Retail73.2Finance/Insurance74.5Services67.7PublicAdministration/Government62.4ManufacturingNondurables78.51997NationalScore=71.1ChangesinNationalACSI73.773.071.970.872.072.272.474.174.273.773.770.771.171.1707172737475Q4/1994Q1/1995Q2/1995Q3/1995Q4/1995Q1/1996Q2/1996Q3/1996Q4/1996Q1/1997Q2/1997Q3/1997Q4/1997Q1/1998CustomerSatisfactionandEconomicPerformance:TheEvidencetoDateROIorROAPositiveandsignificantrelationship(U.S.andSwedishdata)RicardianRentsPositiveandsignificantrelationship(Tobin’sQ)(U.S.data)MarketValueOnepo