What is the South African Customer Satisfaction Index?
The South African Customer Satisfaction Index (SAcsi) is an independent economic indicator based on modeling of customer evaluations of the quality of goods and services purchased in South African produced by both domestic and foreign firms with substantial market shares.
Why was a customer satisfaction index developed?
The Index was developed to provide information on satisfaction with the quality of products and services available to consumers. Prior to the introduction of the SAcsi to South Africa, no national measure of quality from the perspective of the user was available. The SAcsi measures the quality of economic output as a complement to traditional measures of the quantity of economic output.
Who benefits from the SAcsi? How is the Index used?
The SAcsi benefits corporate managers who need to know how to improve their company’s current condition by allocating scarce resources to maximise the strength of their customer relationships. Companies use the SAcsi as a tool to optimise customer satisfaction, which in turn drives customer loyalty and thereby corporate profitability. The Index also is used for competitive and cross-industry benchmarking.
The SAcsi benefits investors who need to understand the relationship between a company’s current condition and its future capacity to produce wealth. In capitalistic free markets, sellers that do well by their customers are rewarded by more business from buyers and more capital from investors. Likewise, when businesses fail to satisfy customers as effectively and efficiently as competitors, both customers and investors will turn elsewhere.
The SAcsi benefits government, which needs to know how best to encourage economic growth and living standards for its citizens. The Index benefits consumers who need to have a voice in measures that reflect those economic living standards.
How are SAcsi data collected?
The SAcsi surveys customers of companies and users of government services randomly via telephone and email. Potential respondents are asked questions about their purchase and use of specific products and services bought within specified, recent time periods (these periods vary according to the product or service). Those who qualify as respondents are then asked from which company or which brand they have purchased, and responses to the SAcsi survey questions are coded as a customer interview for that company. The SAcsi score for each company is based on a sample of 270 customer interviews, with more than 70,000 interviews conducted annually.
Why is the sample only 270?
The principle of sampling of often misunderstood, however, there is a statistically proven method for sampling that is applied accross research methods. There are three important components for deciding on the sample size, namely Margin of Error, Confidence Level, and Population Size. The typical goal for most customer satisfaction research is to have a sample size that would give a 95% confidence level, and a 5% margin of error. A 95% confidence level means that if a survey is conducted within the same population 100 times, then 95 times out of 100, you would get similar results. The 5% margin of error means that if the survey indicates that customers are 75% satisfied (for example), then that satisfaction score can vary 5% above or below that score. For a random smaple of any population above 50 000 at a 95% confidence level and a 5% margin of error, the sample size is calculated at 382. The SAcsi do random sampling at a 90% confidence level and a 5% margin of error, and therefore the sample size is calculated at 270.
How are company brands measured?
Customer satisfaction is measured at the company level. When a customer identifies a specific brand, the respondent is coded as a customer of the company that produces that brand.
How are the measured companies selected? Do they change over time?
Within each industry, companies are selected on the basis of total sales. The measured companies represent a significant proportion of the overall market share of the industry. Individual companies are added or deleted from the Index as their market position changes or as a result of mergers and acquisitions. Industries are added as new types of consumer products or services emerge and grow over time like cellular telephones or Internet service providers.
When are SAcsi results publicly released?
SAcsi results are made available to the public each month. For a detailed schedule of which indices are to be released each month, please contact the SAcsi.
Is the information behind measured company scores available?
Only the customer satisfaction (SAcsi) score for each company measured in the Index is published. The SAcsi’s array of products and services are available to companies that want to obtain the full story behind the published scores. SAcsi clients gain access to confidential, detailed results, including 30 data points that encompass the complete arc of their customer’s experience. The ACSI’s patented modeling and analysis software helps our clients benchmark their own results against industry peers and best-in-class companies.
Can a company not included in the SAcsi get its own customer satisfaction index?
Companies not included in the SAcsi can obtain an index of their own. Although not part of the publicly released SAcsi scores, these companies receive custom research using the same methodology and can benchmark their results with best-in-industry and best-in-class companies.