Understanding the link between customer feedback metrics and firm performance

Gomaa Agag (Lead / Corresponding author), Baseer Ali Durrani, Yasser Moustafa Shehawy, Majed Alharthi, Hawazen Alamoudi, Sherif El-Halaby, Ahmed Hassanein, Ziad H. Abdelmoety

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)
77 Downloads (Pure)

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 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.

Original languageEnglish
Article number103301
Number of pages16
JournalJournal of Retailing and Consumer Services
Volume73
Early online date5 Mar 2023
DOIs
Publication statusPublished - Jul 2023

Keywords

  • Consumer feedback metrics
  • Net promoter scores
  • Consumer satisfaction
  • Customer effort score
  • Marketing efforts
  • Financial performance

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