Background

ACSI Methodology

Measurements
The ACSI reports indices on a 0-100 scale at the national level, for seven economic sectors, 34 industries and nearly 200 individual companies or agencies. In addition to the company-level satisfaction scores, the ACSI produces indices for the drivers of customer satisfaction, its outcomes and the interrelationship among these variables.

The measured companies, industries and sectors are broadly representative of the U.S. economy serving household consumers. Sales of the measured companies constitute 30-40% of the Gross Domestic Product (GDP). Non-U.S. companies with major market shares in several industries also are included in the ACSI. Smaller companies are measured through an “other companies” index within each industry.

The ACSI data come from telephone surveys of random samples of the customers of rated companies.

The Model Behind the Numbers
The ACSI model is a set of causal equations that link customer expectations, perceived quality and perceived value to customer satisfaction (ACSI). ACSI is linked, in turn, to its consequences in terms of customer complaints and customer loyalty (measured by price tolerance and customer retention). For most companies, repeat customers are major contributors to profit. Thus, customer retention (estimated as repurchase probability) is a major indicator of financial performance. By translating that estimate into dollar amounts, the ACSI is able to calculate the net present value of a company’s customer base as an asset over time.

The ACSI translates a powerful econometric model into a real-world business application. It is a tool that centers business activities around treating customers as economic assets, and offers the insights and benefits of a unique strategic weapon for gaining competitive advantage and creating shareholder value through investments in customer satisfaction. As a result, it can be used with a good deal of accuracy in predictions of both individual companies’ financial performance and national economic performance.

The American Customer Satisfaction Index can be found at www.theacsi.com/

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