Indian Customer Satisfaction Index (ICSI) is the Customer Satisfaction study in India for both private sector & government agencies serving end customers & citizens for India. Indian Customer Satisfaction Index is the objective measurement of citizen and customer satisfaction and benchmarking organisations on what matters to end customers. Customer Satisfaction Index also provides diagnostics for determining specifics for improvement of organisations -customer and citizen satisfaction.
For the Indian Customer Satisfaction Index study, customer satisfaction data is collected by a questionnaire based survey which also involves customer interviews. Indian Customer Satisfaction Index (ICSI) uses a science based proprietary methodology of American Customer satisfaction Index (ACSI) which has been validated after decades of research and practice.
In the Indian Customer Satisfaction Index (ICSI), the Customer Satisfaction Index score is calculated as a weighted average of three survey questions that measure different facets of satisfaction with a product or service. The main variables for measuring Customer Satisfaction are:
Customer expectations are a measure of the customer's anticipation of the quality of a company's products or services. Usually, expectations represent
· Earlier consumption experience of the customer, which also include some of the experiential information like advertising and word-of-mouth,
· It also includes customer forecast of the company's ability to deliver quality in the future.
Customer Satisfaction measured through Perceived quality is a measure of the Customer's evaluation through their recent consumption experience of the quality of a company's products or services.
· Quality is measured in terms of both customization for the customer which also denotes the degree to which a product or service by the organisation meets the customer's individual needs,
· And reliability which denotes the frequency with which things goes wrong with the product or service.
Customer Satisfaction measured through Perceived value is a measure of “quality relative to price paid”. American Customer Satisfaction Index (ACSI) research/practice proves that price (value for money) is often very important to the customer's first purchase but it usually has a somewhat smaller impact on satisfaction for repeat purchases.
Customer complaints are usually the dissatisfaction the customer has for a product/service of an organisation. In Indian Customer Satisfaction Index (ICSI), it will be measured as a percentage of respondents who indicate they have complained to a company directly about a product or service within a specified time frame. It is also seen that Customer satisfaction has a negative relationship with customer complaints. So more satisfied the customers, the less likely they are to complain.
Customer Satisfaction measured through Customer loyalty is a combination
· customer's professed likelihood to repurchase from the same supplier in the future
· And the likelihood to purchase a company’s products or services at various price points or price tolerance.
Customer loyalty is the critical component in the measurement of Customer Satisfaction as this denotes as a proxy for profitability for an organisation.
The data from the survey is put as an input to a multi-equation econometric model which is the proprietary methodology of American Customer Satisfaction Index(ACSI)developed at the University of Michigan's Ross School of Business. The ACSI model being used by ICSI 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/ICSI) in the centre, and outcomes of satisfaction on the right side (customer complaints and customer loyalty, including customer retention and price tolerance). Indexes are reported on a 0 to 100 scale.
Indian Customer Satisfaction Index (ICSI) scores for 12 largest banks in India will be out by the end of 2015. And thus it shall help banking organisations, citizens & regulators know how the bank is fairing, on what matters most to end customers.
Indian Customer Satisfaction Index (ICSI) is being launched in India, in partnership & collaboration with the globally respected American Customer Satisfaction Index (ACSI), to independently & objectively measure, benchmark & improve end customer, citizen satisfaction of private, public and government organisations – within and across sectors in India.