Customer Satisfaction Models

Customer Satisfaction is a complex concept that various scholars and industry experts have tried to understand and model over the years. These models help businesses to systematically evaluate and enhance their customer satisfaction strategies.

1. Kano Model

Developed by Noriaki Kano in the 1980s, the Kano Model categorizes customer preferences into five types: Must-Be (basic needs which, if not fulfilled, cause dissatisfaction), One-Dimensional (needs that are directly correlated with satisfaction level), Attractive (delight features that can significantly boost satisfaction if delivered but do not cause dissatisfaction if absent), Indifferent (features which neither enhance nor detract from satisfaction), and Reverse (features that can lead to dissatisfaction if present). This model helps businesses prioritize features based on their impact on customer satisfaction.

2. American Customer Satisfaction Index (ACSI) Model

This is a standardized economic indicator that measures the satisfaction of consumers across the U.S. economy. It uses customer interviews as input to measure the quality of goods and services available to consumers. The model is based on the causation of customer expectations, perceived quality, and perceived value, each of which has an effect on customer satisfaction, which in turn influences customer complaints and customer loyalty.

3. European Customer Satisfaction Index (ECSI) Model

Similar to ACSI, the ECSI model integrates customer expectation, perceived quality, and perceived value to determine customer satisfaction, which then predicts loyalty intentions. This model was adapted to cater to the European market and includes image as a factor influencing both expectations and perceived value, as well as the perceived quality.

4. Swedish Customer Satisfaction Barometer (SCSB) Model

The SCSB model was developed by the Swedish Quality Institute and is the basis for both ACSI and ECSI models. It links customer satisfaction to future consumption and loyalty behaviors, providing a measure for comparing companies and industries.

5. Oliver’s Expectancy Disconfirmation Theory

This theory, developed by Richard Oliver, is one of the foundational theories of customer satisfaction. It posits that satisfaction level is a result of the discrepancies between expected and actual performance. Satisfaction occurs when the product or service performance exceeds expectations (positive disconfirmation), whereas dissatisfaction results from performance that falls below expectations (negative disconfirmation).

6. SERVQUAL Model

Developed by Parasuraman, Zeithaml, and Berry in the 1980s, this model measures service quality by comparing expectations to service performance. It identifies five key dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. The gap between expected service and perceived service across these dimensions determines the overall satisfaction.

7. Herzberg’s Two-Factor Theory

Though originally a motivational theory, it’s often applied in customer satisfaction contexts. According to Herzberg, factors leading to customer satisfaction are distinct from those leading to dissatisfaction. Factors that enhance satisfaction (motivators) are separate from those that prevent dissatisfaction (hygiene factors).

8. Net Promoter Score (NPS) Model

Developed by Fred Reichheld, Bain & Company, and Satmetrix, the Net Promoter Score is a straightforward loyalty metric that categorizes customers into Promoters, Passives, and Detractors based on their response to a single question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” Scores 9-10 are Promoters, scores 7-8 are Passives, and 0-6 are Detractors. The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters. This score is used to gauge the customer’s overall satisfaction and loyalty to the brand.

9. Customer Satisfaction (CSAT) Score Model

This is another straightforward and widely used metric for gauging customer satisfaction. Customers are asked to rate their satisfaction with a product, transaction, or interaction on a typical scale, such as 1 to 5, where 5 usually means very satisfied and 1 means very dissatisfied. The results are then averaged to get a CSAT score, providing a snapshot of how satisfied customers are at a given point in time.

10. Expectancy-Value Theory

This model, rooted in psychological principles, suggests that customer satisfaction is determined by the comparison of expected product value prior to purchase against the perceived value after consuming or using the product. If the perceived value meets or exceeds the expected value, customer satisfaction is likely to be high. This theory underlines the importance of managing customer expectations and delivering on promises.

11. Gap Model (or SERVQUAL Gap Model)

Expanding on the SERVQUAL model, the Gap Model identifies five major gaps that can lead to unsatisfactory customer service experiences:

• Gap 1: The difference between customer expectations and management’s perception of customer expectations.
• Gap 2: The disparity between management’s perception of customer expectations and the translation of those perceptions into service quality specifications.
• Gap 3: The gap between service quality specifications and the service actually delivered.
• Gap 4: The difference between service delivery and what is communicated about the service to customers.
• Gap 5: The gap between a customer’s expectation of a service and their perception of the service.

12. Transactional Satisfaction Model

This model views customer satisfaction as the result of specific transactions or experiences with a company rather than an overall feeling about a brand. It suggests that satisfaction can vary from one transaction to another and highlights the importance of every touchpoint in shaping overall customer satisfaction.

13. Three-Component Model

This psychological model suggests that customer satisfaction is influenced by cognitive, affective, and conative components. Cognitive involves knowledge or belief about the product; affective is the emotional response to the product; and conative represents the intentions or future behavior towards the product.