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1 – 10 of 92Manuela Cazzaro and Paola Maddalena Chiodini
Although the Net Promoter Score (NPS) index is simple, NPS has weaknesses that make NPS's interpretation misleading. The main criticism is that identical index values can…
Abstract
Purpose
Although the Net Promoter Score (NPS) index is simple, NPS has weaknesses that make NPS's interpretation misleading. The main criticism is that identical index values can correspond to different levels of customer loyalty. This makes difficult to determine whether the company is improving/deteriorating in two different years. The authors describe the application of statistical tools to establish whether identical values may/may not be considered similar under statistical hypotheses.
Design/methodology/approach
Equal NPSs with a “similar” component composition should have a two-way table satisfying marginal homogeneity hypothesis. The authors compare the marginals using a cumulative marginal logit model that assumes a proportional odds structure: the model has the same effect for each logit. Marginal homogeneity corresponds to null effect. If the marginal homogeneity hypothesis is rejected, the cumulative odds ratio becomes a tool for measuring the proportionality between the odds.
Findings
The authors propose an algorithm that helps managers in their decision-making process. The authors' methodology provides a statistical tool to recognize customer base compositions. The authors suggest a statistical test of the marginal distribution homogeneity of the table representing the index compositions at two times. Through the calculation of cumulative odds ratios, the authors discriminate against the hypothesis of equality of the NPS.
Originality/value
The authors' contribution provides a statistical alternative that can be easily implemented by business operators to fill the known shortcomings of the index in the customer satisfaction's context. This paper confirms that although a single number summarizes and communicates a complex situation very quickly, the number is ambiguous and unreliable if not accompanied by other tools.
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The purpose of this study is to present and explain a new customer segmentation approach inspired by failure mode and effect analysis (FMEA) which can help classify customers into…
Abstract
Purpose
The purpose of this study is to present and explain a new customer segmentation approach inspired by failure mode and effect analysis (FMEA) which can help classify customers into more accurate segments.
Design/methodology/approach
The present study offers a look at the three most commonly used approaches to assessing customer loyalty:net promoter score, loyalty ladder and loyalty matrix. A survey on the quality of restaurant services compares the results of categorizing customers according to these three most frequently used approaches.
Findings
A new way of categorizing customers through loyalty priority number (LPN) is proposed. LPN was designed as a major segmentation criterion consisting of customer loyalty rate, frequency of purchase of products or services and value of purchases. Using the proposed approach allows to categorize customers into four more comprehensive groups: random, bronze, silver and gold – according to their loyalty and value to the organization.
Practical implications
Survey will bring a more accurate way of categorizing customers even in those sectors where transaction data are not available. More accurate customer categorization will enable organizations to use targeting tools more effectively and improve product positioning.
Originality/value
The most commonly used categorization approaches such as net promoter score, loyalty ladder or loyalty matrix offer relatively general information about customer groups. The present study combines the benefits of these approaches with the principles of FMEA. The case study not only made it possible to offer a view of the real application of the proposed approach but also made it possible to make a uniform comparison of the accuracy of customer categorization.
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Timo Laine and Markku Antero Laitinen
In the transformed information environment, the impact and value of the services are not adequately shown using the traditional library metrics. It needs to be supplemented with…
Abstract
Purpose
In the transformed information environment, the impact and value of the services are not adequately shown using the traditional library metrics. It needs to be supplemented with user-centered ways of measurement. The paper aims to discuss these issues.
Design/methodology/approach
The paper is a case study of the new Finna service and the measurement challenges it presents.
Findings
The standards guiding the measurement and evaluation of libraries cannot offer a “cook-book” for the organizations to follow. The paper suggests that as a one possible response to this, the Net Promoter Score can be used as one indicator in measuring the impact of new services.
Research limitations/implications
The findings of the paper are preliminary, because so far there is not a wide experience of the use of NPS in libraries. This calls for further study. The results are encouraging, but more testing is needed with different services.
Originality/value
NPS has not been widely used in libraries before.
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Shivangi Viral Thakker, Jayesh Parab and Shubhankar Kaisare
As educational institutes began to address the challenges posed by COVID-19, e-learning came to the foreground as the best bet left. This study is in quest of revealing…
Abstract
Purpose
As educational institutes began to address the challenges posed by COVID-19, e-learning came to the foreground as the best bet left. This study is in quest of revealing engineering student's perceptions of the available e-learning platforms, thus surfacing the underlying bottlenecks. Further, it aims at providing solutions that would help enhance the e-learning experience not only in pandemic times but also in the long run.
Design/methodology/approach
This holistic research begins with a comprehensive comparative study about the available e-learning platforms, followed by a primary data analysis through an online survey of 364 engineering students from various colleges and branches. The collected data was analyzed to detect bottlenecks in online learning and suggestions are given for solving some challenges.
Findings
On a five-point Likert scale, the available e-learning platforms garnered ratings ranging from 2.81 to 3.46. Google meet was the most preferred platform. However, with a net promoter score (NPS) of 30.36, Microsoft Teams emerged as the most satisfying platform. Technical shortcomings clubbed with psychological and biological factors were found to be taking a toll on e-learning.
Research limitations/implications
This innovative research is based on the perceptions of engineering students hailing majorly from Indian cities, and hence, it may be having educational stream bias and geographical bias. The research could be further extended to cover rural areas and global trends in e-learning.
Originality/value
The research offers a thorough analysis of e-learning platforms, as seen through the lens of engineering students. Furthermore, the analysis does not constrain itself to the technicalities and thus proves to be an all-encompassing one, potent enough to surface critical issues marring the e-learning experience.
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Elisabeth Happ, Ursula Scholl-Grissemann, Mike Peters and Martin Schnitzer
Offline retail stores have been working on improving their in-store customer experience; they have begun to realise the physical advantage they have over online channels…
Abstract
Purpose
Offline retail stores have been working on improving their in-store customer experience; they have begun to realise the physical advantage they have over online channels. Especially sports products have a number of unique features, such as high emotional involvement or a sense of community; additionally, sports customers put emphasis on multisensory brand experience at the point of sale. This study examines the in-store customer experience (ISCX) in offline sports retail stores, taking into account the commercial uniqueness of sport.
Design/methodology/approach
A qualitative study (focus groups; n = 16) and quantitative survey (cross-sectional survey design; n = 238) were conducted to measure ISCX in sports retail stores.
Findings
The results suggest that the customers' in-store experience has a significant influence on customers' satisfaction with the sports retailer and their likeliness to recommend the store to friends, which, in turn, is significantly affected by customers' satisfaction with the retailer. Moreover, social responses to actors involved in the service encounter, for example, the interaction with employees, play a significant role for the customer in-store experience. Accordingly, sports customers strive not only for functional benefits inherent in the interaction with customers and employees but also for social benefits.
Originality/value
This study extends the knowledge by (1) replicating the ISCX scale, (2) analysing ISCX in a sports retail environment and (3) examining the influence of ISCX on the Net Promoter Score. Moreover, the findings support managers' know-how about in-store setting and help to maintain the customer relationship.
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