Consumer satisfaction is quite obviously important for both consumers & organizations’ today. Hence the need to objectively measure the same, to facilitate improvement.
Accordingly, the Indian Customer satisfaction Index (ICSI) is being launched in India, for measuring consumer satisfaction based benchmarking of organizations’ within and across sectors.
Hexagon Consulting is introducing ICSI for India, in collaboration and partnership with the globally respected American Customer Satisfaction Index (ACSI), using the ACSI customer satisfaction survey and analytics methodology.
- This unique index will enable organizations’ and companies in India to be benchmarked across all aspects of customer experience with industry peers and eventually with best in class companies in other industries.
- Consumers will benefit by getting an objective & independent end customer satisfaction based measure to benchmark organizations’ & companies.
- As ICSI uses the ACSI methodology being used in many countries across developed and emerging markets, this will allow & enable cross national benchmarking as well.
Customer satisfaction based benchmarking is easier said than done.
Measuring & benchmarking organizations’ based objective measures of consumer satisfaction is however easier said than done. Measuring consumer perception, satisfaction or capturing overall consumer satisfaction is not a simple yes no answer or a response calibrated on a simple scale, rather it has many complex layers of customer perception and satisfaction integrated including parameters like:
· Customer expectations
· Perceived quality (of product & service)
· Perceived value(i.e. quality relative to price)
· Customer complaint handling
· customer loyalty
This complexity has been comprehensively addressed for India by the use of the established and globally respected methodology - American Customer satisfaction Index(ACSI) . This customer satisfaction measurement methodology has been developed & perfected over the last 2 decades. ACSI uses customer interviews as input to a multi-equation econometric model developed at the University of Michigan's Ross School of Business, which has being used and validated for the last 2 decades and used in over a dozen countries around the world such as US, UK, Singapore (and few emerging economies as well).
The ICSI index will objectively and independently benchmark organizations’ in India, across broad swath (manufacturing and services) of Indian economy covering both private and public sector organizations.
ACSI methodology being used to measure Citizen Satisfaction of governments as well
Incidentally the ACSI methodology is used to measure governments as well (both federal & agency) on citizen satisfaction.
We will start with the banking sector
The ICSI index is planning to launch in India with “banking” sector and over time we plan to cover more industries/sectors.
Work on the Indian Customer satisfaction Index (ICSI) is already underway in preparation of the launch.
Here’s an update from last week, when Dr Forrest Morgeson III , Director of Research and Global CSI Manager from ACSI was with us in India to support, guide and review the ICSI launch preparation, with the ICSI Leadership and launch team in India.
Bawa Grover, Managing Partner Hexagon Consulting, Forrest Morgeson III PHD. Director of Research & Global CSI Manager American Customer Satisfaction Index (ACSI), Amrinder Kaur – Senior Consultant & Project manager –ICSI, and some of key members of the Indian Customer Satisfaction Index (ICSI) launch team [at Gurgaon on August 14th, 2015].
We at Hexagon Consulting have been working in the area of customer experience enhancement & management and are passionate about helping organizations improve in this critically important space. Over the last few weeks our project work on ICSI and related ongoing dialogue and discussions to develop the India CSI got a fillip, with the week-long India visit of Forrest Morgeson III PHD – Director of Research and Global CSI manager of our partner: American Customer Satisfaction Index (ACSI).
As mentioned, the Indian customer satisfaction index (ICSI) will use the proprietary and globally respected methodology of American Customer Satisfaction Index (ACSI). The partnership and ongoing collaboration between Hexagon Consulting and ACSI will ensure that the objectivity and credibility of this indexed benchmarking is as credible in India, as it is globally.
Credible and objective information on organizational benchmarking will help both consumers and organizations’ in India. This will contribute to enhancing product quality, service delivery & overall end customer experience and thus contribute to improving the competitiveness of Indian organizations’, our economy and society.
ICSI, a diagnostic tool for organization’s to identify levers of improvement
Organisations would not only like to know how they are faring vis-à-vis their peers and across industries, sectors, they would also like to know which are the specific levers to be activated, to optimize/improve end customer satisfaction – and also the extent of the impact of each of the actionable levers. Thanks to the ACSI methodology, ICSI will support and guide organizations’ on specific actionables on the benchmarking diagnostics, with data backed insights of the potential impact of each actionable (to help organizational decision making)– thereby contributing to optimizing/ improvement of end customer/user satisfaction
Helps equity analysts/markets as well
Incidentally customer satisfaction measurement index scores are known in most equity markets to also be one of the lead indicators of future financial performance and profitability, growth of an organization or brand. Hence equity analysts can also benefit from such benchmarking – as various studies and research indicates correlation between customer satisfaction and organizational growth, profitability and improvement in company valuation.
Customer satisfaction Index for measuring and ranking of organizations’ on consumer satisfaction exist in most mature markets but in India such an index is the first of its kind.
If the goal is to help organizations’ improve on delivering superior customer satisfaction, then we first need to measure what we want to improve - and ICSI is the first objective and independent indexed measure for organizations’ across private and public sectors in India.
ICSI aspires to significantly benefit organizations’, consumers & society at large in India and we expect to contribute meaningfully to further transforming and maturing the Indian economy.
The ICSI logo
- objective indexed benchmarking of organizations’ in India on consumer satisfaction -
We look forward to hear your thoughts and views on ICSI and on the subject: measuring consumer satisfaction in India