Understanding the link between customer feedback metrics and firm performance
Date
2023-03
Journal Title
Journal ISSN
Volume Title
Type
Article
Publisher
Elsevier Ltd.
Series Info
Journal of Retailing and Consumer Services;73 (2023) 103301
Scientific Journal Rankings
Abstract
Practitioners utilise customer feedback metrics (CFM’s) to monitor business performance. However, the influence
of CFM’s on firm performance has been ignored. Thus, this paper aims to examine the effects of CFM’s on firm
performance. Our study collected data about CFM’s, marketing efforts, and financial performance over the period
2005–2020 from American Customer Satisfaction Index. The present study used a multiple regression panel
analysis to investigate the influence of different CFMs (i.e., SAT, Top-2-Box, NPS proportion, NPS value, and CES)
on firm performance (i.e., gross margin, sales growth, and Tobin’s Q), moderating by operating environment
factors (i.e., munificence, power, and dynamism). Our results revealed that Top-2-box is the best predictor CFM’s
to compare firms in online booking, hotels, and online shopping industries, while consumer satisfaction is the
best predictor for electronic and fixed telecom industries. CES is the best CFM’s to compare companies in res-
taurants industries. Moreover, NPS is the best metric to compare different companies in holiday parks industries.
The results provide considerable managerial implications for effective use of resources regarding investing in
most suitable CFM’s to enhance firm performance.
Description
Keywords
Consumer feedback metrics, Net promoter scores, Consumer satisfaction, Customer effort score, Marketing efforts, Financial performance