Customer Satisfaction Index Formula

In modern times, Internet and globalization have provided numerous benefits to business organizations in almost every part of the world. However, they have also increased competition and given more opportunities or options to customers. Therefore, it has become a lot more difficult to satisfy customers and gain a competitive edge over your rivals.

For years, many companies try to find out ways to develop the perfect’ marketing strategies and evaluate them to make rectifications. Unfortunately, most of these efforts were unsuccessful. But customer satisfaction index formula has been one of the most important developments for business organizations all around the world.

Importance of Customer Satisfaction Index Formula 

Customer satisfaction metrics have become very important to increase customer retention. With a higher customer retention rate, a business organization is able to increase its sales and profits. Contrary to the common notion, customer satisfaction metrics have been developed by various authorities. In fact, a customer satisfaction index formula can help you measure your data and anticipate performance.

How to Measure Data with Customer Satisfaction Index Formula?

In tough competitive times, it is very important to familiarize yourself with customer satisfaction metrics. ACSI is the company which measures overall customer satisfaction and puts out general customer metrics for particular industries.

Before you proceed any further, you will have to find out your industry’s score. This is what you’ll measure your business’ customer satisfaction against. If you’re new to using customer satisfaction index, it will be better to use a less quantitative version of ACSI’s methodology to measure data related to your customer service.

In order to determine a particular industry’s score, ACSI gathers a lot of data from numerous customer satisfaction surveys. Every customer satisfaction survey is distributed among random people. This ensures elimination of any unintended trends. You can use this method to evaluate your customer service. Every survey should include 3 questions on a scale of 1-10. These 3 questions should fall in the following categories :

● Overall Satisfaction

● Expectancy Disconfirmation – Whether the product fell short of expectations

● Performance of Product vs Customer’s Ideals

ACSI uses methods which are way more complex than the one mentioned above. For instance, ACSI measures the exact value received against numerous products that customers don’t necessarily expect to offer any good value for money. Similarly, it measures the value of products which create lots of expectations in the minds of the customers.

If these two kinds of products receive the same score, ACSI’s score for them will be calculated differently. Since you’re measuring your customer service yourself, you can simply consider a scale of 1-10. Here is the equation which is used to calculate your ACSI score or customer satisfaction index formula :

(Satisfaction-1) x 0.3885 + (Expectancy-1) x 0.3190 + (Performance-1) x 0.2925)/9 x 100

It is very important to compare your customer satisfaction score with your industry’s score every quarter. You can easily check the score for a particular industry on ACSI’s official website. This score is updated every 45 days. If your customer satisfaction score is higher than ACSI’s score for your industry, you’re on the right track. However, if your score is lower, you will need to make some efforts to increase customer retention.


Matthew is the Lead Author & Editor of CXperience Blog. Matthew established the CXperience blog to create a source for news and discussion about some of the issues, challenges, news, and ideas relating to Customer Experience.