Quantify

To generate a customer satisfaction, performance index, market analysis or make a product benchmark a general method can be applied.

The basic of the method is to define the important points relevant for the analysis. This important points can be for example

  • customer satisfaction
    • service
    • delivery time
    • warranty
    • price
    • return
    • delivery cost
    • availability
    • packaging
    • payment
    • funding
  • performance index
  • market analysis
  • product benchmark

After the important points are identified it is needed to weight these points e.g. from 0 to 10 or as you prefer. From now the scale is from 0 to 10 with 0 as very bad/very unimportant and 10 as very good/very important. The generation of weights can be also done together with the customer (the customer can be also an internal department).

After the weights each point must be also rated reflecting the current status. For example how does the customer rate the delivery time.

Using the points, weights and ratings a spread sheet can be produced as shown.

TopicWeightRating
service93
delivery time89
warranty54
price1010
return88
delivery cost1010
availability101
packaging38
payment methods71
funding20

This can be illustrated in a nice diagram. In the diagram four quadrants can be defined.

  1. Is the positive quadrant (core competence)
  2. Is the negative quadrant (weakness)
  3. Is the uninteresting quadrant
  4. Is the wrong decision/past quadrant

The upper table can be filled into such a diagram.

As it can be seen three topics are a problem

  • service
  • availability
  • payment methods

But on the other four topics are good

  • delivery time
  • price
  • delivery cost
  • return

In the given example from all values a customer satisfaction index can be generated by building a weighted rating and compare it with the maximum possible sum for a perfect rating.

TopicWeightRatingWeighted Rating
service9327
delivery time8972
warranty5420
price1010100
return8864
delivery cost1010100
availability10110
packaging3824
payment methods717
funding200

The maximum sum of weighted rating is the weight multiplied by 10 and summed over all topics in this example 720.

The sum of all weighted rating is 429. Now an index can be calculated by dividing both values:

429/720=60%

Is this a good value?

It depends on

  • your goals
  • where are the competitors
  • costs to improve
  • possibilities to improve

In general you define a goal value and try reach/hold this value. Of course if your competitors are better rated you MUST do something.

To generate the plots you can use the EXCEL file for it.

Template