Monday, January 30, 2023
No Result
View All Result
  • Home
  • Recent
  • Business
  • Economy
  • Investing
  • Markets
  • Personal Finance
  • Retirement
  • Tech
  • Startups
  • Insurance
  • Market Research
  • Crypto
  • Home
  • Recent
  • Business
  • Economy
  • Investing
  • Markets
  • Personal Finance
  • Retirement
  • Tech
  • Startups
  • Insurance
  • Market Research
  • Crypto
No Result
View All Result
Home Market Research

How Happiness Impacts Satisfaction and Recommendation Measures

Updates Finance by Updates Finance
July 13, 2022
in Market Research
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


You might also like

Care Partners: Hidden in Plain Sight. Implications for Market Research

Data Privacy Day, B2C Marketing Edition

Forrester’s Demand & ABM Program Of The Year Award

Companies regularly measure customers’ satisfaction with products or services, particularly with the staff who serve the customers. Companies also regularly ask customers about their intentions to recommend the business to others (often using the Net Promoter Score). Both the satisfaction and recommendation measures are used to strengthen the business and often to reward the staff who have performed well.

The underlying and unstated assumption with both measures is that customers make their judgments based on their actual experiences, and so the results are comparable over time. This assumption can lead to teeth-gnashing and berating of staff if the satisfaction or the NPS scores decline. But whether the mindsets of customers are all the same from measure to measure is not tested. Yet it should be, we strongly suggest.

Why should we test if customer mindsets differ?

Research shows that in general happiness flows in a U curve, with the young and the older being happy and the middle-aged markedly less happy.[1]

This finding had us wondering whether all customers respond to satisfaction and recommendation queries in the same way, and whether one’s happiness mindset affects your answers to these measures.

Does one’s happiness influence satisfaction and recommendation answers?

We tested this hypothesis by adding the happiness question to a satisfaction and recommendation measure undertaken for an Australian bank, before analysing the 3,570 completed responses by satisfaction and recommendation by age groups. To retain comparability with previous surveys, the happiness question was asked at the end of the survey. The “not happy” participants group was defined as those who were happy only some of the time, a little of the time, or none of the time. The “happy” group was defined as those who were happy all, most, or a good bit of the time. Participants self-assessed their happiness, as they did with their satisfaction and their recommendation intention.

Age does not impact satisfaction or recommendation

Satisfaction with the bank was analysed by five-year age groups, and in this study, the satisfaction measures were consistent with each age group in proportion to the age group’s proportion of the total. This finding indicates that the happiness by age group U curve does not apply to these satisfaction measures.

Satisfaction by five-year groups chart

DERHAM INSIGHTS RESEARCH

The NPS categories (Promoter, Passive, Detractor) were then cross-analysed by five-year age groups. In this study, the intentions to recommend were consistent across each age group with its proportion in the overall sample.

This finding indicates that the happiness by age group U curve did not apply to recommendation intention.

NPS groups analysed by five-year age groups chart

DERHAM INSIGHTS RESEARCH

The age-related U curve of happiness appears not to apply to measures of satisfaction or of recommendation.

For most, life is rosy!

We then looked at participants’ self-reported happiness and saw that, for most, life was rosy.

Self-assessed Happiness overall bar graph

DERHAM INSIGHTS RESEARCH

Happiness mind-states do affect satisfaction and recommendation

But when we reviewed satisfaction and recommendation by the participants’ self-assessed happiness measures, a different story emerged.

We found that those who were not happy consistently rated this bank and other banks they used at lower levels than those who were happy.

Satisfaction with financial institutions - net happy or net unhappy survey participants bar graph

DERHAM INSIGHTS RESEARCH

In NPS terms, the survey participants who were happy were more likely to be Promoters of the bank than were those who were unhappy. Those who were unhappy were more likely to be Detractors than happy people. Only among the Passives group were those who were happy and those who were unhappy customers almost in alignment.

Net Promoter Scores for the financial institution - net happy or net unhappy survey participants

DERHAM INSIGHTS RESEARCH

Did contact with the bank change satisfaction?

We then looked to see if contact with the bank made any difference to participants’ satisfaction with it, according to their contact type. As the graph shows, those who contacted the bank in the last four weeks and were also self-assessed as happy were more satisfied with the bank than those who were unhappy.

Those who were unhappy were particularly less likely to be satisfied with the electronic forms of access but were also less satisfied with the branch staff and the service they received in the branches. So, the problems affecting the unhappy people’s assessments of bank services were not (just) caused by any possible personal problems using its technology.

Satisfaction among the net happy or net unhappy survey participants who had contacted the financial institution in the 4 weeks before the survey, by contact type bar graph

DERHAM INSIGHTS RESEARCH

Conclusions

These results are striking and clearly suggest that customers’ satisfaction and intentions to recommend are influenced by their states of mind, in happiness terms.

Whether unhappy people interact with the bank and its apps and people and services in a disgruntled way that generates a negative response and so lowers the unhappy person’s assessment, or whether their state of mind merely ensures that everything they touch, is marked down in some grey way that reflects their mindset, was not explored in this survey.

Accordingly, these results are indicative and show a need to further explore how unhappy people make their assessments of satisfaction and intentions to recommend, and whether their approaches are consistent with or differ from those of happy people.

In advance of such studies, companies should add the happiness question to all satisfaction and recommendation measures in future, as changes in those measures could be influenced by changes in customers’ happiness, as well as changes in company performance.

By measuring all three elements, companies can better assess whether changes in their satisfaction or recommendation intentions are because of changes in their own performance or are influenced by an increase or a decrease in customers who are happy or unhappy.

References

 Multidimensionality of Longitudinal Data: Unlocking the Age-Happiness Puzzle* Ning Li, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Melbourne Institute Working Paper No. 4/14



Source link

Tags: HappinessImpactsmeasuresRecommendationSatisfaction
Share30Tweet19
Updates Finance

Updates Finance

Recommended For You

Care Partners: Hidden in Plain Sight. Implications for Market Research

by Updates Finance
January 30, 2023
0

When we talk about patient centricity and patient centered care, we often emphasize the importance of considering the patient perspective, their priorities and needs as articulated by the...

Read more

Data Privacy Day, B2C Marketing Edition

by Updates Finance
January 27, 2023
0

Happy Data Privacy Day, marketers! If you’re thinking “What’s that?” and “Why should I care?” … stick with me for a minute. Data Privacy Day occurs annually on...

Read more

Forrester’s Demand & ABM Program Of The Year Award

by Updates Finance
January 27, 2023
0

Rock-Star Demand & ABM Teams Deserve Recognition It may sometimes appear like organizations “abracadabra” growth when, in fact, behind the curtain, demand and ABM teams are contributing blood,...

Read more

Agile + Low Code = Digital Transformation Rocket Fuel

by Updates Finance
January 27, 2023
0

Truly digital firms have business models with technology at the core, and this technology is software. For such firms, software is an expression of the business. To become...

Read more

6 Things To Know – GWI

by Updates Finance
January 27, 2023
0

On February 12, Super Bowl LVII will kick off in Arizona and if past viewership numbers hold up, over 110 million viewers could be tuning in. Part football...

Read more
Next Post

Rail unions accuse ministers of blocking pay deals

Related News

Regulation of Cryptocurrency in South Africa Should Not Scare Away Investors Experts Say – Regulation Bitcoin News

July 30, 2022

FTX Co-Founder Indicted by Federal Grand Jury in Manhattan, Bahamian Magistrate Denies SBF’s Bail – Bitcoin News

December 14, 2022

The 16-inch MacBook Pro with an M1 Max chip just crashed to its lowest price ever

November 27, 2022

Browse by Category

  • Business
  • Cryptocurrency
  • Economy
  • Insurance
  • Investing
  • Latest updates
  • Market Research
  • Markets
  • Personal Finance
  • Retirement
  • Startups
  • Technology

Get the latest Financial news on updatesfinance.com. Business news, Economy news, Investing news, Personal Finance and more.

CATEGORIES

  • Business
  • Cryptocurrency
  • Economy
  • Insurance
  • Investing
  • Latest updates
  • Market Research
  • Markets
  • Personal Finance
  • Retirement
  • Startups
  • Technology

Recent News

  • Tech, megacaps drag Wall St lower at start of big market week By Reuters
  • Joshimath: Chamoli DM suggests three options for settlement of displaced people

Copyright © 2022 - Updates Finance..

No Result
View All Result
  • Home
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Updates Finance..

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?