There are many paths to satisfaction…measurement that is. Marketing researchers are notorious for their need to measure a customer’s satisfaction with the product or service in question. This measurement process can range from the simple Net Promoter Score®, a single item with an 11-point scale, to complex models based upon multiple constructs. The aim of this post is not to debate the merits of simple vs. complex measures, but to introduce a model that is easy to actualize and can serve as a benchmark to compare more complicated measures against.
Derived measures of satisfaction can provide a meaningful alternative to direct measures. One such measure that I use quite frequently relies upon two questions to derive a customer’s satisfaction:
- Have you used Acme, Inc. in the last six months?
- If yes, would you recommend Acme, Inc. based upon your experience with them?
It is easy for a consumer to recommend a company based upon their perception of that company’s execution on its value proposition. It is entirely different if said consumer has actually been a consumer of the company’s services. For this measure we define satisfaction as the percentage of respondents who have used a company and would recommend that company. Visually it looks like this:
Since this measure is derived by the intersection of two variables, we have to watch the direction in which those variables change over time. Both variables could increase independently, but the area that overlaps may not increase. If you are using a customer satisfaction tracking study then I highly recommend comparing this measure to other measures you are employing.