Setting Targets for Measures of Customer Satisfaction: Comparing Results Based on Benchmarking vs. Linkage Analysis

Every company wants to know how they add up against the competition. But how do you measure customer satisfaction and loyalty?

Dr. D. Randall Brandt spoke about three ways to set target loyalty goals: judgment-based metrics, benchmark-based, and linkage analysis.

Judgment-based choosing is when management simply picks a target based on personal judgment. This works best in tandem with benchmarking or linkage. It can be difficult for management to articulate the rationale, and it may not be realistic.

When companies use benchmark-based targets, they define their targets in comparison to some benchmark, be it time, inter- or intra-organizational. These targets are easier to explain and take into account the company’s current state. However, this may promote a false sense of confidence since you don’t know if achieving the target will yield desired business results.

Linkage Analysis is based on strength and creates a relationship between satisfaction and business outcome of interest. It is easier for management to explain, which increases the odds of achieving the desired business result

The objectives of this analysis is to determine and evaluate the similarities and differences among targets based upon benchmarks vs. linkage analysis, then use the results to develop a framework. Frameworks should:

- 1. Drive continuous improvement

- 2. Achieve customer experience leadership

- 3. Realize desired business results

Use these criteria for setting targets for key customer metrics on the basis of business strategies and objectives. Evaluate scores on these metrics using the selected multiple criteria and targets to find out just where your company sits against others in the industry.