American Customer Satisfaction Index
| Company type | Private |
|---|---|
| Industry | Market research, Economic indicator |
| Founded | 1994 |
| Headquarters | Ann Arbor , United States |
| Products | Customer satisfaction index, surveys, ACSI scores |
| Website | www |
The American Customer Satisfaction Index (ACSI) serves as an economic gauge evaluating consumer contentment throughout the U.S. economy. This index is developed and maintained by ACSI LLC, located in Ann Arbor, Michigan.
Each year, the ACSI conducts surveys involving roughly 350,000 consumers regarding their satisfaction with various purchased products and services. These participants cover a wide spectrum of business-to-consumer categories, including durable goods, services, non-durable goods, and governmental services. ACSI releases its satisfaction scores on a monthly basis, which are then utilized by businesses, government entities, market analysts, investors, industry groups, and academic researchers to monitor trends in customer satisfaction and guide strategic planning.
History
The ACSI was initiated in 1994 through a partnership between researchers at the National Quality Research Center of the University of Michigan, the American Society for Quality, and CFI Group, Inc. Its conceptual framework was derived from the Swedish Customer Satisfaction Barometer (SCSB), first developed in 1989. Both instruments were created by Claes Fornell, Distinguished Professor Emeritus at the University of Michigan and chairman of CFI Group.
ACSI score calculation
A firm's ACSI rating is determined by three principal survey components rated on a scale from 1 to 10 by customers:
| Survey Dimension | Score 1 | Score 10 |
|---|---|---|
| Overall satisfaction (X1) | Very dissatisfied | Very satisfied |
| Expectancy disconfirmation (X2) | Does not meet expectations | Surpasses expectations |
| Comparison to an ideal (X3) | Far from ideal | Very close to ideal |
The resulting ACSI score ranges from 0 to 100 and is computed through weighted averages of these variables incorporated into a structural equation model:
(((X1*W1) + (X2*W2) + (X3*W3)) - 1) / 9 * 100
Sector, industry and company-level findings
Analysis of ACSI data indicates that certain industries and individual companies consistently achieve superior customer satisfaction levels, whereas others fall short of the average. On an industry-wide scale, manufacturing—encompassing both durable and non-durable goods—generally records favorable scores.
Industries demonstrating sustained high ACSI ratings include e-commerce, personal care products, soft drinks, beer, consumer electronics, automobiles, and household appliances. In contrast, sectors such as cable television, airlines, and telecommunications commonly register lower satisfaction levels.
Macroeconomic findings
Research in academia has established that overall customer satisfaction correlates with key macroeconomic indicators like growth in GDP and Personal Consumption Expenditure (PCE).
Stock market findings
Empirical studies featured in the Journal of Marketing reveal that investment portfolios composed of companies with high customer satisfaction tend to outperform broader market indices. For instance, a 2016 study tracking a fund based solely on ACSI data found that firms exhibiting strong customer satisfaction exceeded the S&P 500’s returns by 518% compared to 31% from 2000 through 2014.
Global implementation of the ACSI framework
Several governments and academic organizations across nations such as India, Saudi Arabia, Singapore, Dubai, Kuwait, South Africa, Honduras, Puerto Rico, and Colombia have embraced the ACSI framework to establish their own national customer satisfaction metrics. This widespread international utilization facilitates detailed comparative analyses across countries by employing a standardized approach.
Authorized users of the ACSI methodology
In addition to ACSI LLC, the ACSI methodology is licensed to CFI Group LLC for use with specific corporate clients. Furthermore, ACSI Funds operates an exchange-traded fund (ETF) that leverages ACSI data, trading under the symbol "ACSI".