American Customer Satisfaction Index: U.S. Consumers are Under-Whelmed
By Corinne Kuypers-Denlinger

Here’s an item that should top every company’s to-do list: Promise to become a customer-centric organization.

The payoff will be customer satisfaction, loyalty and the best advertising money can’t buy—word of mouth. While the advice might sound obvious, the rush to produce faster, smaller, better and cheaper high-tech products and services has caused a lot of companies to forget to ask customers whether they like what they are getting. You might be surprised at the answer.

The American Customer Satisfaction Index finds that consumers are under-whelmed by the newest and most advanced technology products. Instead, consumers are giving the

highest marks to companies that are far from the cutting edge. The company with the highest index rating, 90, is H.J. Heinz, maker of family-friendly foods.

Other companies with higher than average ratings include home appliance manufacturer Kenmore (85) and auto maker Ford-Lincoln Mercury (86). Meanwhile, the best a computer maker was able to score was 81, for Apple. Hewlett-Packard scored 70, down from 78 in the first year the index was released.

Overall, the 200 companies in 40 industries tracked by the University of Michigan Business School, which compiles the index, received an average rating of 74.8.

Why such low scores when companies have been working to give customers high-quality goods at rock bottom prices? According to Professor Claes Fornell, originator of the index: “Price has an effect on whether you buy or not. It has less of an impact on whether you’re satisfied or not.”

That fact may be evident in the score of 75 received by the most efficient discounter of all, Wal-Mart. Amazon.com, on the other hand, received a respectable 88. Even though it may not have the lowest prices, the experience of shopping on Amazon apparently leaves consumers more content than shopping at Wal-Mart. While Wal-Mart succeeds on volume sales, most other companies must appeal to buyers’ needs or emotions by offering products and services that solve a problem or make a statement. Others also may rely on cultivating relationships with customers to earn repeat and word-of-mouth sales. That means going the extra mile and creating what experts call a customer-centric or customer-focused company culture.

Dr. Jodi Simco, consultant with the Hay Group, a human resources advisory firm, says two factors determine whether customers will be satisfied and whether satisfaction will translate into loyalty: the outcome that the customer experiences and the process by which the product or service is received.

Meeting customers’ expectations in the buying experience and in product performance requires a commitment to customer service throughout an organization.

As anyone who has made a purchase that has not matched expectations knows, a positive interaction between the company and the customer can be more important than reliable product performance. How the firm solves a problem determines whether a customer walks away angry, buys again or recommends the firm to friends.

Every company knows this, but not every company practices it well.

The start of a new year is as good a time as any for organizations to renew their commitment to customers.

Corinne Kuypers-Denlinger is editor in chief of Trend Letter. Reach her at CKDenlinger@Briefings.com.