TY - JOUR
T1 - Understanding the link between customer feedback metrics and firm performance
AU - Agag, Gomaa
AU - Durrani, Baseer Ali
AU - Shehawy, Yasser Moustafa
AU - Alharthi, Majed
AU - Alamoudi, Hawazen
AU - El-Halaby, Sherif
AU - Hassanein, Ahmed
AU - Abdelmoety, Ziad H.
PY - 2023/7
Y1 - 2023/7
N2 - 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 restaurants 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.
AB - 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 restaurants 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.
KW - Consumer feedback metrics
KW - Net promoter scores
KW - Consumer satisfaction
KW - Customer effort score
KW - Marketing efforts
KW - Financial performance
UR - http://www.scopus.com/inward/record.url?scp=85149377457&partnerID=8YFLogxK
U2 - 10.1016/j.jretconser.2023.103301
DO - 10.1016/j.jretconser.2023.103301
M3 - Article
SN - 0969-6989
VL - 73
JO - Journal of Retailing and Consumer Services
JF - Journal of Retailing and Consumer Services
M1 - 103301
ER -