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KPI Library – Customer Satisfaction

Customer Satisfaction Index


Customer Satisfaction Index is based on the premise that satisfied customers will be more likely to carry out repeat purchase of goods/services, remain loyal to an organisation and offer positive feedback. It follows therefore that this measure indicates how successful an organisation is at delivering goods/services to the market. Customer Satisfaction is important to an organisations’ financing, as the cost of attracting new customers is generally higher than that required to maintain a relationship with an existing customer. It also offers a tool to hi-light gaps which may arise between the product/service offered and the expectation of customers. A mix of qualitative and quantitate assessments are considered to provide the most accurate assessment, this may be obtained from a survey immediately following the delivery of goods/service or after a given period of time (e.g. Annually)


The customer scores satisfaction with criteria such as expectations, perceived value, etc. The scores may then be weighted to reflect relative significance to an organisation and combined to form a single numerical score identifying the customer’s overall level of satisfaction or dissatisfaction. Sample size/survey method must also be selected to ensure it is representative of customers.


For a retail outlet: Post-purchase questionnaire. Score 1 – 5 (1 = poor/dissatisfied) (5 = Good / very satisfied) Perceived quality Perceived value Satisfaction with sales assistance provided No returns – actual data obtained during the survey period. No customer complaints – actual data obtained during the survey period.