Article
Customer satisfaction, economic indicators continue to rise
QSR customer satisfaction has matched its highest score ever, with Wendy's in the lead.
May 20, 2009
ANN ARBOR, Mich. — Market research has shown signs that consumer confidence and satisfaction is improving. The American Customer Satisfaction Index (ACSI) continues to climb, registering a second straight quarterly improvement after a period of decline preceding the recession.
For the first quarter of 2009, the Index jumped 0.4 percent to 76.0 on ACSI's 100-point scale, according to a recent report by the University of Michigan.
When ACSI improved in the fourth quarter of 2008, it stood nearly alone among economic indicators showing positive news in the midst of the recession. Now it is joined by several other indicators.
"Stock prices have been rising, real estate is showing signs of life, consumer confidence is up, corporate earnings are mixed but generally better than expectations and inventories are becoming more in line with demand and, above all, consumer spending rebounded in the first quarter," said Claes Fornell, founder of the ACSI and author of "TheSatisfied Customer: Winners and Losers in the Battle for Buyer Preference."
"It is too early to predict whether the recession has bottomed out, but since ACSI is usually a precursor to increasing consumer demand, it could very well be signaling a revival for a very depressed US economy," he said.
In the first quarter of the year, ACSI measures customer satisfaction with the quality of products and services in utilities, transportation and warehousing, information, health care and social assistance, and accommodation and food services.
In foodservice, quick-serve is unchanged at 78, matching its highest score ever, while full-service restaurants jumped 5 percent to 84. As the recession has driven business away from sit-down restaurants to the cheaper fast food alternatives, full-service restaurants have had to try harder to compete.
Customer service has improved, at least in part, because there are fewer customers to serve, but it also is true that there have been menu changes to the liking of diners and a lowering of price in some instances.
The gains in customer service for foodservice brands include:
- Domino's, on top at 77
- Wendy's and Taco Bell lead QSR with the biggest gains, each up 4 percent to 76 and 73 respectively
- McDonald's continues to do well, passing both Burger King and KFC, up 1 percent to an all-time high of 70.Over the past four years, the world's largest fast food chain has improved customer satisfaction more than any other QSR and at a rate more than four times the industry average.
Consumer sentiment up
The latest information frommarket research companyThe NPD Group Inc.'sEconomy Trackershows consumer sentiment is on the rise and concern regarding job security is decreasing.
NPD'sGeneral Economic Perception Indicatorrose from 36.5 points in March to 40.8 points in April. The indicator measures consumer concerns regarding the economy on a scale between 0 and 100, with 0 being "Very Concerned" and 100 being "Very Confident."
"These results are encouraging and indicate that the consumer is feeling more positive about the state of our economy," said Marshal Cohen, chief industry analyst,The NPD Group Inc.
*Source: The NPD Group
The survey also showed a 7 percent decline in the number of consumers who are ‘very concerned' about the security of their jobs.
"How consumers feel about the security of their incomes has an impact on how they respond at retail," Cohen said.
The decreasing concern regarding job security may have been a factor in the up-tick of the Retail Response Indicator, which increased almost four points from 35.9 in March to 39.5 points in April.
"Consumers are telling us they are still buying only what they need, and that they are motivated to purchase by sales and special promotions," Cohen said.
The Retail Response indicator measures consumer spending intentions on a 0 to 100 scale, with 0 representing "Reduce or Spend Less" and 100 representing "Spend More."
