scholarly journals Customer experience quality surpasses NPS in correlation to financial performance, customer loyalty and customer satisfaction

2020 ◽  
Author(s):  
Michele Bennett ◽  
Anthony Molisani
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Customer Loyalty ◽  
Customer Experience ◽  
Strongly Correlated ◽  
Business Growth ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Important Measure

Customer loyalty and satisfaction drives business. For over a decade, NPS has been touted as the most important measure of loyalty and predictor of business growth, even as researchers have struggled to consistently prove the claim. Other measures of customer experience, loyalty and satisfaction have arisen that challenge the supremacy of NPS, even as hundreds of companies rely on NPS for its simplicity and promise of business growth. Measuring 1605 US-based customers of US publicly traded companies, this study has found that while NPS was positively and significantly correlated with customer loyalty, satisfaction, and financial performance, customer experience quality (CEQ) surpassed NPS in all three measures. The research also showed that CEQ was strongly correlated with NPS, suggesting that the two metrics are synergistic. The findings demonstrate that there is provable value in exploring metrics beyond NPS that companies may be missing and thereby limiting their growth and competitiveness.

scholarly journals Technical innovation and perceived usability outperform NPS in correlation to financial performance in US publicly traded companies

2020 ◽  
Author(s):  
Michele Bennett ◽  
Anthony Molisani
Keyword(s):  
Financial Performance ◽  
Customer Loyalty ◽  
Business Performance ◽  
Customer Experience ◽  
Technical Innovation ◽  
Strongly Correlated ◽  
Business Growth ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Perceived Usability

Since its creation, Net Promoter Score (NPS) has become a standard measurement of customer loyalty and business growth. However, independent research results have challenged that status yet without budging corporate beliefs. The blind eye to inconsistent outcomes is due in part NPS’ simplicity and uneven but hopeful measures of positive business impact, even as companies are in the dark about the factors that impact their score. Therefore, measuring 1605 US-based customers of US publicly traded companies, this study has found that NPS was positively and significantly correlated with financial performance. However, two other dimensions of customer experience, technical innovation (TI) and perceived usability (PU) outperformed NPS with stronger correlations demonstrating both the value of NPS but also perhaps the need to look beyond. In addition, TI and PU were also strongly correlated with NPS, offering insights into aspects of the customer experience, customer loyalty and business performance that companies can use to impact their NPS score, which they would otherwise not know.

scholarly journals Defining customer experience and measuring its impact on financial performance of US publicly traded companies

2020 ◽  
Author(s):  
Michele Bennett ◽  
Anthony Molisani
Keyword(s):  
Customer Loyalty ◽  
Business Performance ◽  
Customer Experience ◽  
Publicly Traded ◽  
Public Companies ◽  
Publicly Traded Companies ◽  
Confirmatory Factor ◽  
Net Promoter ◽  
Individual Variables ◽  
The Individual

Customer experience (CX) is an important contributor to business performance. Yet, studies vary in defining CX, variables and constructs, and measurement to performance. This study defined CX and the direct impact to market capitalization (MC) of US public companies. The CX definition combined Customer Experience Quality (CEQ) with Customer Satisfaction (CSAT), Customer Loyalty (CLY), and Net Promoter Score (NPS). Each dimension was measured to the extent to which they impact MC. The sample consisted of 1605 US customers of US publicly traded companies. Using correlation analysis, multiple linear regression, and confirmatory factor analysis, the individual variables of CEQ were positively and significantly correlated with MC and with each other. CEQ, CSAT, CLY, and NPS were also positively and significantly correlated with MC, and the holistic CX was predictive of MC. Companies can apply the insights of the study to improve their customer experience to deliver measurable business and shareholder value.

scholarly journals EFFECT OF CUSTOMER VALUE AND CUSTOMER EXPERIENCE ON CUSTOMER SATISFACTION AND LOYALTY PT MERATUS SAMARINDA

2020 ◽  
Vol 4 (01) ◽  
Author(s):  
Hasfar M ◽  
Theresia Militina ◽  
Gusti Norlitaria Achmad
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Customer Value ◽  
Structural Equation ◽  
Customer Experience ◽  
Statistical Test ◽  
Statistical Hypothesis ◽  
Equation Modeling ◽  
Value Effect ◽  
Customer Satisfaction And Loyalty

This study aims to determine the effect of customer value and customer experience to customer satisfaction and loyalty PT Meratus. The population in this study are customers of PT Meratus by the number of 80 customers. Methods of data collection is done by providing a list of questions or the questionnaire respondents who are customers of PT Meratus, where questionnaires were distributed to such subscribers. This study uses data analysis tool which Partial Least Square (PLS), then this study using structural equation modeling analysis method or path analysis to determine the causal relationship between the latent variables contained in the structural equation. While testing the hypothesis tested boost strap resampling method developed by Geisser and Stone. Statistical test used statistical test t or t test, with statistical hypothesis. The tools used in processing the data using PLS Smart program. The results of this study indicate that 1) customer experience influence positive and significant to customer satisfaction, 2)) customer experience influence positive and significant customer loyalty, 3) customer value effect on positive and significant to customer satisfaction, 4) customer value effect positive but are not with significant customer loyalty, 5) customer satisfaction and significant positive effect on customer loyalty.

scholarly journals Relevance Of Devidend Policy As The Mediation On The Relationship Between Financial Performance and Debt On Share Prices

2021 ◽  
Vol 7 (1) ◽  
pp. 180-192
Author(s):  
Irma Tyasari ◽  
Supami Wahyu Setiyowati
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Dividend Policy ◽  
Share Price ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Share Prices ◽  
Correlational Research ◽  
Analysis Technique ◽  
The Relationship

The investors place great importance on the share price of publicly traded companies since it may reflect the company’s value. The research objective is to examine the relationship between financial performance and debt at share prices through dividend policy. The method of the research used is quantitative and correlational research. The data analysis technique is the use of smart PLS. The results of the study explain that financial performance has a positive effect on stock prices in the mediation of dividend policy. Debt negatively affects share price mediated by dividend policy. The implication of the study is that companies should consider the benefits as well as risks of borrowing funds from third parties. Investors and potential investors before investing their money in stocks must pay attention to financial performance, corporate debt and dividend policy so that they do not experience losses in their investment.

scholarly journals How To Build Customer Loyalty: Through Customer Experience, Perceived Price, And Customer Satisfaction

2021 ◽  
Vol 12 (4) ◽  
pp. 1546-1554
Author(s):  
Edhie Budi Setiawan, Et. al.
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Low Cost ◽  
Least Square Method ◽  
Customer Experience ◽  
Partial Least Square ◽  
Least Square ◽  
Perceived Price ◽  
The Impact

The competition to get the highest Market Share among Low-Cost Carrier airlines in Indonesia is getting fierce. Airlines are competing to offer prices that are appropriate for passengers to perceive them in this era of tariff wars. The degree of satisfaction that is felt is needed to get loyal customers. The purpose of this research is to analyze the impact of customer experience and perceived price on customer loyalty through customer satisfaction. The method of analysis in this study uses the SEM-PLS (Structural Equation Model - Partial Least Square) method with 250 respondents taken by purposive sampling. The result of this research is there is effect positive and significant between customer experience on customer satisfaction and customer loyalty, also there is effect of perceived price on customer satisfaction and customer loyalty. Airlines must pay attention to the services provided to create a memorable experience for passengers and adjust prices to be accepted by passengers.

scholarly journals ANALISA CUSTOMER VALUE DAN CUSTOMER EXPERIENCE TERHADAP CUSTOMER LOYALTY DENGAN CUSTOMER SATISFACTION SEBAGAI VARIABEL INTERVENING (Studi Pada Waroeng Spesial Sambal Cabang Purwokerto)

Media Ekonomi ◽  
2015 ◽  
Vol 15 (2) ◽  
pp. 57
Author(s):  
Kuswanti Ariningsih ◽  
Tri Septin Muji Rahayu
Keyword(s):  
Customer Satisfaction ◽  
Marketing Strategy ◽  
Key Words ◽  
Customer Loyalty ◽  
Customer Value ◽  
Customer Experience ◽  
Purposive Sampling ◽  
Business Condition ◽  
Questionnaire Method

This research was based on the comptitive business condition in restaurant business that was getting more competitive, therefore the corporates had to make a new marketing strategy to stay and achieve he higher market. This research aimed to test the effect of customer value and customer experience toward customer loyalty with customer satisfaction as intervening variable. The data were gained by questionnaire method to the 110 respondent of waroeng spesial sambal cabang purwokerto with purposive sampling. The result of the research showed that not all of the hypotheses could not be accapted. Out of the 5 (five) hypotheses accepted hypotheses. The result of H1, H2, H3 showed that customer value and customer experience partialy and simultane affected significantly of the customer experience to customer loyalty. Sobel test showed that from both variables customer value and customer experience proved that customer vaue and customer experience had mediated effect. Key words: customer value, customer experiece, customer satisfaction, customer loyalty

Determinants of Customer Loyalty and Financial Performance

2004 ◽  
Vol 16 (1) ◽  
pp. 183-205 ◽  
Author(s):  
Rodney E. Smith ◽  
William F. Wright
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Customer Loyalty ◽  
Causal Model ◽  
Company Performance ◽  
Financial Outcomes ◽  
Revenue Growth ◽  
Nonfinancial Measures ◽  
Product Value ◽  
Customer Satisfaction And Loyalty

Recent research in accounting advocates nonfinancial measures of company performance, such as customer satisfaction and loyalty, as useful indicators of aspects of firm performance. But what are the drivers of customer satisfaction and loyalty? We provide an integrated causal model of company performance in the personal computer (PC) industry that simultaneously tests links between product value attributes resulting from business process performance, customer loyalty, and financial outcomes. Our results extend prior accounting research (e.g., Banker et al. 2000; Ittner and Larcker 1998) in two directions: (1) by explaining the determinants of customer loyalty, and (2) by clarifying the relation between customer loyalty and measures of financial performance. We report that product value attributes directly and differentially impact levels of customer loyalty as well as prevailing average selling prices. Furthermore, measures of customer loyalty explain levels of relative revenue growth and profitability, and relatively high customer loyalty engenders a competitive advantage in the PC industry.

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