Structure Equation Modelling

The Brief:
The client is an overseas company in banking. They are tracking satisfaction levels across all processes involved in banking to a client base. This includes overall satisfaction levels and satisfaction across all aspects of the process. They were seeking insights on this information.

The Approach:
SEM was used to understand the relationship between micro satisfaction levels and overall satisfaction. Econometric modeling was then used to quantify these relationships.

The Results:
SEM is confirmatory rather than exploratory. Accordingly, there was a bit of work building the latent factors: staff conduct & environment, customer needs, waiting time & convenience. One of the key challenges was understanding the relationship of some key micro satisfaction indicators that impact across a number of latent factors e.g. satisfaction with range of services.