Customer Satisfaction Index (CSI) use in business modeling, strategic planning and strategic management
Abstract. The Customer Satisfaction Index (CSI) is one of the most powerful tools for measuring customer satisfaction. The relevance of the research to improve the effectiveness of using this tool is beyond doubt. The scientific novelty of this study is to discuss the specifics of development and CSI use in business modeling, strategic planning and strategic management. The object of the research is the phenomenon of monitoring and managing loyalty of the company customers and related strategic issues. The subject of the re-search is development and CSI use in strategic work. The management, consulting and educational projects of the EMAS business School, as well as scientific articles by other authors, served as the information base of the research. The research discusses the methodological features of development and use, the scope of use and limitations on the CSI application in business modeling, strategic planning and strategic management. The findings are made on the need for full compliance with the methodological requirements for development and application of this tool, feasibility of implementing its potential not only in measuring customer satisfaction, but also in other areas.
Keywords: customer satisfaction, customer satisfaction index, CSI, NPS, price satisfaction, customer satisfaction management, brand management, USP, strategic management, business modeling, strategic planning, price competitiveness, business model innovation.
Highlights:
- CSI is one of the most powerful tools for managing customer satisfaction and strategic development of a business;
- CSI provides more opportunities to find problem areas and growth areas than other tools with similar tasks, in particular NPS;
- it is proposed to use CSI not only in the traditional areas for this tool (measuring customer satisfaction and making decisions to increase their satisfaction, managingquality of the company performance), butalso in such new areas as business modeling and business model innovation, economic and mathematical modeling, USP development, brand management. This will significantly increase effectiveness of business modeling, strategic planning and strategic management in the company;
- in contrast to the syncretic approach to CSI formation, the author`s discrete approach is proposed, which will increase the analytical value of the tool and ensure its applicability in business modeling, strategic planning and strategic management;
- at the stages of CSI development and use, it is recommended to follow the methodological requirements, in particular: at the development stage, it is necessary to identify the target cluster correctly, the segment and group of customers whose satisfaction is being measured, perform qualitative and quantitative research competently; at the application stage it is strictly obligatory to comply with the requirements for quantitative research, when performing calculations, it is also necessary to take into account the ideology, which was included in the index;
- it is necessary to be aware of the limitations that are inherent in CSI, for example, it is not recommended to measure price satisfaction using CSI.
An drey A. Kolyada - Eurasian Management and Administration School (EMAS Business School), Nizhny Novgorod, Russia