Customer Satisfaction Measurement: how not to do it, how to do it and why it
should be done.
by Nigel Hill.
Nigel Hill is founder and Managing Director of The Leadership Factor, a research
company which specialises in measuring satisfaction and loyalty. Based in the UK,
USA, Australia, France and Italy, The Leadership Factor conducts CSM surveys for
many blue chip companies and runs seminars on measuring customer satisfaction and
employee satisfaction both in Europe, America and Australia. Nigel is author of The
Handbook of Customer Satisfaction Measurement and How to Measure Customer
Satisfaction, both published by Gower.
The Leadership Factor Ltd
Taylor Hill Mill
Huddersfield HD4 6JA
Telephone: +44 (0)1484 517575
Many organisations fail to apply adequate rigour to their customer satisfaction
research process and consequently produce misleading results. This is detrimental
even if the results are used only as a guide for service improvement strategies but
could be very damaging if they are to contribute to strategic decisions. In the USA,
some leading companies have developed Profit Chain models enabling them to
forecast the effect on financial performance of improving customer and / or employee
satisfaction. Since customer satisfaction measures usually occupy a pivotal place in
such models, the reliability of the measures becomes critical. This article highlights
the main requirements of an accurate and effective customer satisfaction measurement
If you want real value from customer satisfaction measurement (CSM) there are some
key things you just have to get right but many organisations dont. Customer
surveys are sometimes seen as a common sense activity that anyone can organise.
After all, some say, its only a matter of asking a few questions to some customers
and looking at what they say. This kind of attitude often results in responsibility for