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American Customer Satisfaction Index (ACSI)

American Customer Satisfaction Index (ACSI)

What Is the American Customer Satisfaction Index (ACSI)?

The American Customer Satisfaction Index (ACSI) is an economic indicator of U.S. consumer sentiment that depends on a cross country survey in which U.S. consumers are approached to rate the products and services that they use.

Understanding the American Customer Satisfaction Index (ACSI)

In excess of 500,000 consumers are tested yearly for the index, which rates customer satisfaction with in excess of 400 companies across 47 industries. The American Customer Satisfaction Index produces four levels of indexes or scores — a national customer satisfaction score, 10 economic sector scores, 47 industry endlessly scores for individual companies as well as government agencies. The ACSI is an important indicator of economic performance for individual firms as well as the macroeconomy.

The ACSI utilizes data gathered from around 500,000 customer interviews as contributions to a multi-condition econometric model developed at the University of Michigan. The index was first distributed in October 1994 and is refreshed quarterly on a rolling basis, with new data for at least one economic sectors supplanting data collected the previous year.

ACSI data is utilized by organizations in planning and capital budgeting, by researchers examining consumer behavioral trends, and by policymakers who use it as an indicator of the wellbeing and bearing of the economy. Investors keep an eye on the numbers for individual companies and industries.

A company's ACSI score is derived from a poll. Each question involves a 1-10 rating scale to rate a company, government agency, or other entity. Organizations are rated on the following:

  • Overall satisfaction (1 means "extremely disappointed" and 10 means "exceptionally fulfilled")
  • Expectancy disconfirmation (1 means "misses the mark concerning assumptions" and 10 means "surpasses assumptions")
  • Comparison to an ideal (1 means "not exceptionally close to the ideal" and 10 means "extremely close to the ideal").

In its history of north of 25 years, the ACSI hit its highest level of 77 out of a potential 100 during the principal quarter of 2017. It rehashed that high score in the second from last quarter of 2018. The score got ugly in the fourth quarter of 2020, dropping to 73.7%. The survey creators noticed that the COVID-19 pandemic might have exacerbated the discontent, yet additionally said that the score had dropped in eight out of the nine previous quarters and had hit its lowest level beginning around 2005.

ACSI: Key Findings

With more than twenty years of experience gathering consumer satisfaction data, the ACSI has made a rundown of key findings in light of its research:

  • High customer satisfaction corresponds to better company financial performance.
  • Changes in customer satisfaction influence the ability of families to make purchases. (Price-changed ACSI is a leading indicator of consumer spending growth.)
  • With consumer spending accounting for ~70% of gross domestic product (GDP), changes in customer satisfaction associate to GDP growth.
  • ACSI scores for manufactured goods (food things, apparatuses) are generally higher than those for services (aircrafts, banks, cable TV).
  • Quality is a higher priority than price in essentially every industry estimated by the ACSI. Price advancements might work over a shorter period of time in raising satisfaction however price cuts are not sustainable in the long term. Companies that emphasis on further developing quality will quite often improve over the long haul.
  • Merger and acquisition activity generally adversely affects customer satisfaction, particularly with services.

ACSI and Investing

ASCI reports might have the power to move markets. Stocks of companies with high ACSI scores will generally show improvement over those of companies with low scores, while the national ACSI score has been displayed to anticipate trends in both consumer spending and stock market growth. ACSI additionally gives its proprietary customer service satisfaction data to exchange-traded fund (ETF) engineers.

A portfolio of stocks chosen in view of customer satisfaction levels outperformed the market as per a 2006 paper in the Journal of Marketing. Another 2016 study found "persuading empirical proof" of the significance of customer satisfaction in creating stock returns. The study's creators utilized 15 years of evaluated returns for companies and found that they delivered 518% more returns somewhere in the range of 2000 and 2014 compared with a 31% increase in the S&P 500.


  • Stocks of companies with high ACSI scores commonly perform better than those with lower scores.
  • One key finding from the ACSI demonstrates the significance of quality over price for customers in essentially every industry.
  • The American Customer Satisfaction Index (ACSI) is an economic indicator in light of a survey of U.S. consumers about products and services they use.
  • The American Consumer Satisfaction Index (ACSI) incorporates four levels of indexes or scores that assess customer satisfaction on a quarterly basis.