The National Customer Satisfaction Index-United Kingdom is an important indicator of the nation’s economic performance, both for individual firms and for the economy at large. The Index is based on the proven methodology of the American Customer Satisfaction Index, launched in 1994.
In both the United Kingdom and United States, customer satisfaction as measured by the ACSI’s scientific methodology has been shown to be predictive of consumer spending, stock market growth, and other important indicators.
The NCSI-UK as Macroeconomic Indicator
In the United States, changes in customer satisfaction at the national level—that is, increases or decreases in the national ACSI benchmark (or national ACSI score)—have been shown to predict changes in the growth of U.S. gross domestic product (GDP) and in Personal Income Expenditure (PCE) growth.
Likewise, the NCSI-UK acts as an indicator of the health of the nation’s economy. In other words, changes in the national NCSI score correlate with changes in the growth of the British economy.
The NCSI-UK as Financial Indicator
In the United Kingdom and in the United States, researchers have used NCSI-UK and ACSI data to demonstrate the relationship between customer satisfaction and the financial performance of individual firms. An organization’s customer satisfaction performance, as measured by the ACSI’s methodology, can predict how well the firm will perform in terms of corporate revenue and earnings growth.
Moreover, both NCSI-UK and ACSI data show that customer satisfaction is directly linked to stock market performance. Specifically, companies with high scores on the National Customer Satisfaction Index-UK and on the American Customer Satisfaction Index produce higher stock returns than their competitors and greatly outperform market indexes.