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Measures of Customer Satisfaction for App based Cab Service


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Q 71. Some of the commonly used measures of customer satisfaction are given below - 

 

  1. NPS (Net Promoter Score) - Loyalty and referral check. 
  2. C-SAT (Customer Satisfaction Index) - Satisfaction attained by the use of product/service. 
  3. Churn (Customer Churn Rate) -  Customer loss assessment.
  4. CAC (Customer Acquisition Cost) - CAC is all the costs spent on acquiring more customers (marketing expenses) divided by the number of customers acquired in the period the money was spent.
  5. CES (Customer Effort Score) - Customer effort assessment in getting work done/ issues resolved. 

 

What will be your ranking for the five metrics (NPS, C-SAT, Churn, CAC, CES) as per order of importance for performance of an App based cab service provider and why? 

 

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For an App Based Cab service provider, the following would be the ranking of the Customer Satisfaction measurement metric in the order of importance and relevance:

 

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1. For the Cab service provider it is equally important to have repeat customers as well as new customers. NPS being a loyalty based referral, will be an important metric to retain customers as well as to attract new customers.

 

2. CES is important here since most operations a well as customer complaints would be handled using the app interface. The amount of effort that a customer has to put in for getting his / her message across and evoking the appropriate response becomes a critical factor and CES provides that measure.

 

3. C-SAT being a versatile metric would have found the second place. However, it is debatable, and since the service is App based, CES finds itself the second place..

 

4. The churn rate would have better applied in a situation where many customers keep subscribed. Hence it is not considered as a highly relevant metric in this case

 

5. Customer Acquisition cost may be taken as a measure that is important from a longer term perspective, and once there already are many customers engaged, the above metrics have relatively higher importance.

 

 

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  • C-SAT  -
  • Churn
  •  NPS
  • CES
  •  CAC

 

Customer satisfaction tops the list in a cab service provider, since this is widely used and not confined to any particular group of people. The repetitiveness or the frequency of usage is quite high. 

CAC is inversely proportional to C-SAT or vice versa.  Its obvious a satisfied customer’s churn rate is always high, and no effort required on NPS. 

Need to focus on CES with a minimum TAT.

 

The real need in today's society for this industry is with the senior citizens and can be considered either as a CSR initiative or encourage with some special discounts. 

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Ranking for the Five Metrics:

 

1. C-SAT (Customer Satisfaction Index) - Satisfaction attained by the use of product/service.

2. NPS (Net Promoter Score) - Loyalty and referral check.

3. CES (Customer Effort Score) - Customer effort assessment in getting work done/ issues resolved

4. CAC (Customer Acquisition Cost) - CAC is all the costs spent on acquiring more customers (marketing expenses) divided by the number of customers acquired in the period the money was spent.

5. Churn (Customer Churn Rate) -  Customer loss assessment.

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For app-based cab service provider, the customer satisfaction score ranking would be as follows..

 

CAC - CES - CSat - NPS - Chrun

 

1. CAC - Is the cost used to convert the onlooker into consumer of the product. In simple terms the marketing cost. it is most important metric for companies and investors to look upon. How much they had to spend to get the number of customers.

 

2. CES - It is ranked top second because in my view, once the customer is attracted to the service / offers, the customer should utilize it or experience the service offered to him. He / She has to take an effort to utilize the service provided.

 

3. C-SAT - Once the service is completely utilized by the person, the consumer of the service has to provide feedback through customer satisfaction surveys / feedback forms, interviews, etc.

 

4. NPS - This would help the company to evaluate the service provided to the customer. In this case, the old customer can refer someone to take up the similar kind of services from the same provider or the same customer would repeat the service utilization frequently.

 

5. Churn - Since it is app based cab service, due to natural distortions, the customer may rate the cab service as bad. In such cases, the customer would be evaluated and Cab service customer care should contact them and resolve their issues if any. This would in turn help the customer to want the service again.

 

Thanks

Kavitha

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In case of an objective to measure the customer satisfaction for the performance of an App Based Cab Service Provider, the obvious situation is that the prospect customer has downloaded the app and tried the services

Here, the customer has taken the effort to download the app  or already downloaded the app and then  tried to book a ride- immediate need. Hence, in the quest to measure the customers overall satisfaction, following is the ranking I would suggest for the five metrics:

1)    CES- It is important to measure how the customer felt about the effort / ease for him to download and then navigate through the app. It will help the organisation to understand the effectiveness of the UI. The organisation can also do an FMEA whenever a download is aborted midway or a ride is not  booked by tracking the quits in between the site map of the application - This also helps the organisation to estimate if there is any particular point, in the site/ road map, from where majority of potential customers are dropping out .

2)    C- Sat- Post booking services and convenience defines the customer’s satisfaction here and loyalty and his prerogative to recommend the app and services he has experienced. Hence I have rated it as second.

3)    NPS- This will help the organisation to assess whether the customer is happy with the end to end experience  and whether provides any other referral

4)    Churn- In this case a churn would mean that the competition has provided some additional benefit and hence it is a certain call for immediate search for sprucing up services.

5)    CAC- is important to understand the cost to acquire customers or entice customers to choose the app . This will help to determine the COB.   However, in the online Cab business , a one time user , if satisfied and impressed will definitely come back as travelling is a frequent activity/ requirement. The measurement of CAC is of the least importance  among the other 5 and focus needs to be on CEC and Csat for repeat business.

Having said that , The most important point that we must remember here is to make good use of the measures  and learnings derived from them and implement

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Here is my list....

  1. C-SAT (Customer Satisfaction Index) - Satisfaction attained by the use of product/service.=> as we provide our rating just after our ride 
  2. CES (Customer Effort Score) - Customer effort assessment in getting work done/ issues resolved. => If issues does not resolved people will find alternet. 
  3. NPS (Net Promoter Score) - Loyalty and referral check. => for long term & referral works too! 
  4. CAC (Customer Acquisition Cost) - CAC is all the costs spent on acquiring more customers (marketing expenses) divided by the number of customers acquired in the period the money was spent. => promo code and all
  5. Churn (Customer Churn Rate) -  Customer loss assessment.

 

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