National Customer Satisfaction Index-UK

Frequently Asked Questions

The National Customer Satisfaction Index-United Kingdom provides answers to frequently asked questions about its history, development, methodology, and benefits to business, investors, and policymakers. If you can't find the answer to your question below, This email address is being protected from spambots. You need JavaScript enabled to view it. .


What is the National Customer Satisfaction Index-United Kingdom?
Who is behind the NCSI-UK?
Why was the NCSI-UK developed?
What can the NCSI-UK tell us?
Who benefits from the NCSI-UK? How is the Index used?
How is the Index constructed?
How are NCSI-UK data collected?
How are company brands measured?
How are the measured companies selected? Do they change over time?
When are NCSI-UK results publicly released?
Is the information behind measured company scores available?
Can a company not included in the NCSI-UK get its own customer satisfaction index?


What is the National Customer Satisfaction Index-United Kingdom?
The National Customer Satisfaction Index (NCSI-UK) is an economic indicator based on an online survey of customer evaluations of the quality of goods and services purchased in the UK and produced by both domestic and foreign firms with substantial UK market shares.
(back)


Who is behind the NCSI-UK?
The NCSI-UK is produced by the American Customer Satisfaction Index (ACSI). The ACSI research team is led by Claes Fornell, Professor Emeritus, Stephen M. Ross Business School at the University of Michigan, and ACSI founder and chairman.
(back)


Why was the NCSI-UK developed?
The NCSI-UK was developed to provide information on satisfaction with the quality of products and services available to the household consumers. The Index is designed to measure the quality of a key part of the UK economy—household expenditure—as a complement to traditional quantitative economic measurement.
(back)


What can the NCSI-UK tell us?
Our experience with the ACSI from nearly two decades of data suggests that:

  • Customer satisfaction is a leading indicator of company financial performance. Stocks of companies with high ACSI scores tend to do better than those of companies with low scores.
  • Changes in customer satisfaction affect the general willingness of households to buy. As such, price-adjusted ACSI is a leading indicator of consumer spending growth and has accounted for more of the variation in future spending growth than any other single factor.
  • Because consumer spending in the US accounts for 70% of gross domestic product (GDP), changes in customer satisfaction as measured by the ACSI also correlate with changes in GDP growth. As GDP is a measure of the quantity of economic output and ACSI a measure of its quality, economic growth is dependent on producing not only more but also better products and services.
  • Quality plays a more important role in satisfying customers than price in almost all ACSI-measured industries. Price promotions can be an effective short-term approach to improving satisfaction, but price cutting is almost never sustainable in the long term. Companies that focus on quality improvements tend to fare better over time in ACSI than companies that focus on price.
  • Mergers and acquisitions have a generally negative effect on customer satisfaction, particularly among service industries. ACSI-measured service companies that have engaged in frequent, large acquisitions typically experience significantly lower ACSI scores in the period following a merger when the customer as asset often takes a backseat to reorganization and consolidation via cost cutting.
    (back)

Who benefits from the NCSI-UK? How is the index used?
The NCSI-UK benefits corporate managers who need to know how to improve their company’s current condition by allocating scarce resources to maximize the strength of their customer relationships. Companies use the NCSI-UK as a tool to optimize customer satisfaction, which in turn drives customer loyalty and thereby corporate profitability. The Index also is used for competitive and cross-industry benchmarking.

The NCSI-UK 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 NCSI-UK 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.
(back)


How is the Index constructed?
The NCSI-UK uses a multi-equation, econometric model to produce three levels of “indices” (referred to as ACSI scores or benchmarks): a national customer satisfaction score, 19 industry scores, and more than 80 scores for top companies within those industries.
(back)


How are the NCSI-UK data collected?
The NCSI-UK uses an online panel from partner Research Now (www.researchnow.co.uk) that closely reflects the geographic and socio-economic profile of the UK population. The sampling methodology is designed to achieve a nationally representative sample for the target industry. Within this process, we determine the demographic profile for each company and set quotas to achieve that profile in the final data output. The scores for each NCSI-UK company are based on a sample of 250 online customer interviews.
(back)


How are company brands measured?
Customer satisfaction is measured at the company level. Because customers often respond with a brand name rather than a company name when asked about the purchase of products and services, all the brands produced by the companies measured in the NCSI-UK are programmed into the online questionnaire.
(back)


How are the measured companies selected? Do they change over time?
The NCSI-UK measures customer satisfaction with the products and services of top companies in 19 household consumer industries. 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 NCSI-UK 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, such as Internet retail or bundled communications and media services.
(back)


When are the NCSI-UK results publicly released?
The NCSI-UK releases selected highlights at the end of each quarter into the public domain via our website and through the media. Only the customer satisfaction score (NCSI) for each company measured in the Index is published. (back)


Is the information behind measured company scores available?
Companies can engage NCSI-UK Services to receive the full story behind the publicly available scores, including over 30 data points related to their own customer experience and that of industry peers. NCSI-UK clients gain valuable insights on the causes and consequences of customer satisfaction and receive specialised modelling and analysis for benchmarking their own results against industry competitors and best-in-class companies in other measured industries. (back)


Can a company not included in the NCSI-UK get its own customer satisfaction index?
Companies not included in the NCSI-UK can obtain an index of their own. Although not part of the publicly released NCSI-UK, these companies receive custom research using the same methodology and can benchmark their results with best-in-industry and best-in-class companies.
(back)