Drivers of satisfaction
- Use of Structure Equation Modelling (SEM) which finds and tests complex relationships (e.g. customer satisfaction and associated drivers as well as between drivers)
- In terms of customer satisfaction, there are a lot of potential drivers impacting:
- SEM strength is the ability to construct latent variables that summarise the importance of the drivers
- The drivers can be reflected in more than one latent variable
- Overall satisfaction is then assessed against the latent variables
- The SEM results can then be used as the bases to construct a number of regression equations which models the relationship between the individual drivers and latent variables and then between the latent variables and overall satisfaction
- The results can be presented in terms of a Decision Support Tool which gives the client hands-on capability of evaluating strategies to improve satisfaction!