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Research News South Africa

SA consumers second most satisfied in the world

The South African Customer Satisfaction Index (SAcsi) has published customer satisfaction results in 19 industries this year and released its first full year national satisfaction index earlier this week, which shows that South Africa has scored a customer satisfaction score of 77.6 out of 100.
SA consumers second most satisfied in the world

South Africa's score is the second highest national customer satisfaction score, with Turkey setting the international benchmark at 78.1 out of 100. SA leads Indonesia (76.7), USA (76.3), UK (75.8), South Korea (72.8), Finland (72.2), Portugal (71.1), Lithuania (70.8), Sweden (70.4), Singapore (69.9), Norway (68.6), Denmark (68.2), Latvia (67.3), Russia (67.5) and the Czech Republic (65.8).

The national customer satisfaction score is calculated using the American Customer Satisfaction Index (ACSI) methodology, allowing the SAcsi to rank South African household-consumers' satisfaction with products and services provided by South African companies with those of other countries that use the same ACSI methodology.

"It is a credit to South African brands and companies that the country has done so well in the international ranking and we are proud to be announcing the first national customer satisfaction index in South Africa with international benchmarking ability," said Prof. Adré Schreuder, founder and chair of the SAcsi.

During 2013, the research measured 19 industries and 102 brands, contributing to a total national sample of 44,224 respondents.

Leading industries, companies, new benchmarks

The five leading industries in terms of customer satisfaction are athletic shoes (89.2), beverages-soft drinks (85.6), beverages-beer (85.2), clothing retailers (82.3) and petrol stations (81.2).

The ten overall leading companies in terms of customer satisfaction are Adidas (91.3), Nike (90.0), Woolworths (88.0), Carling Black Label (87.7), Puma (87.1), Appletiser (86.5), Coca-Cola (85.8), Mercedes-Benz (85.1), Heineken (85.0), Windhoek (84.8) and Castle (84.7).

The top ten industry winners - the highest scoring companies within the top ten industries - are:

  • Adidas (91.3) in athletic shoes
  • Woolworths (88.0) in clothing retailers
  • Carling Black Label (87.7) in beverages-beer
  • Appletiser (86.5) in beverages-soft drinks
  • Mercedes-Benz (85.2) in automobiles
  • Caltex (84.0) in fuel service stations
  • Woolworths Food (83.7) in supermarkets
  • Apple iPhone (83.40) in mobile handsets
  • Chicken Licken and Debonairs (81.8) in fast foods
  • Capitec (81.5) in banking

The results of the national index further revealed that the industries in which South Africa scored highest amongst its international counterparts, thus setting new international benchmarks for 2013, are athletic shoes, clothing retailers, soft drinks, fuel service stations, supermarkets, mobile network service providers and mobile telecommunication retail stores.

Deeper insights

Prof. Schreuder says that there is a direct correlation between sentiment and satisfaction. "The sentiment index recorded an overall of 68.2 out of 100, indicating that there is room for greater emotional engagement with customers. Satisfied customers record a higher level of emotional engagement and commitment. So when customers take to social media platforms to express their feelings about a brand or company, there is a massive opportunity available, provided those brands take the time and trouble to really listen to their customers."

Whereas one may expect that premium brands may perform better in the index, he says the results show that the more significant differentiator is how well brands understand their clients' expectations and then meet expectations. "Woolworths has come out as above industry average in two industries (clothing retailers and supermarkets) and this is seen as a premium brand. Yet, Pep clothing was a close second in the retail clothing industry and there are other examples in the top 10 industry winners that are not seen as premium brands, for example Carling Black Label, Chicken Licken and Capitec Bank."

Industries that are seen to provide poor value are petrol stations, banking, medical aids, airline, beverages-beer, cellular service providers and short term insurance. In contrast, the best performing industries in terms of perceived value are retail clothing stores, telecom stores, fast foods, laptops, restaurants and athletic shoes.

High rate of complaints

The first national SAcsi index has highlighted a number of industries, which experience a much higher rate of complaints: medical schemes, telecommunication stores, banking, automobiles and cellular service providers. "Although there are more complaints registered in these industries, this high rate does not correlate with the recorded levels of complaints handling. In other words, companies are attending to the complaints - a positive element of customer satisfaction - but it appears that the same complaints are being registered and not being solved at the strategic level."

The SAcsi is seen as a valuable tool for businesses and for consumers. "Companies are choosing to subscribe to SAcsi to receive statistically sound information, which speaks about the credibility of the index. This is not research that is commissioned for marketing purposes; it is used as the basis for strategic management decisions."

That the results are published also translates into good news for consumers. "Companies want to ensure that their customers are satisfied and that their performance improves over time. Now that customer satisfaction is being published, they will be under pressure to improve customer satisfaction." Its subscriber reports provide detailed information about areas for improvement.

Research methodology

The company's independent board of advisors nominates measured companies for inclusion based on their market share in an industry measure. "Each company or brand was measured through telephonic and/or web-survey methods at a statistically reliable sample guideline of at least 270 respondents per measured company."

Customer satisfaction is measured using an advanced statistical model that has been rigorously evaluated, in line with the American Customer Satisfaction Index methodology. The index gives companies detailed information to assist them in improving customer satisfaction. Each month, customer satisfaction results are released for specific industries.

For more, go to SAcsi www.sacsi.biz.

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