Foresee results
ForeSee Results is an international online customer satisfaction firm based in Ann Arbor, Michigan. Using the methodology of the University of Michigan’s American Customer Satisfaction Index (ACSI), ForeSee Results scientifically quantifies the elements that drive online customer satisfaction and predicts future behaviors such as purchase, return site visits or referrals. Their research on e-retail, e-government, online financial services, and other online industries is regularly cited in major news and media outlets and in academic and analyst research.
History
ForeSee Results was co-founded in 2001 by Compuware Corporation, a multi-billion dollar computer services corporation, and CFI Group, an international consulting firm. In 2007, ForeSee Results announced the completion of a $20 million financing, led by Updata Partners with Investor Growth Capital Investor AB as co-lead. The two investment firms currently join CFI Group as investors in ForeSee Results. Also in 2007. ForeSee Results acquired the Chicago-based usability consulting group Red Spade. In 2008, ForeSee Results acquired a technology from Vancouver based Nitobi that they developed into CS SessionReplay.
ACSI Methodology
The University of Michigan’s American Customer Satisfaction Index (ACSI)is an international indicator of customer satisfaction on both the macro and micro level. The ACSI:
- Measures over 200 companies representing nearly 50% of U.S. Gross Domestic Product (GDP).
- Reports scores on a 0-100 scale at the national level and produces indexes for 10 economic sectors, 43 industries (including e-commerce and e-business) and more than 200 companies and federal or local government agencies. Produces scores for the causes and consequences of customer satisfaction and their relationships.
- Predicts macroeconomic growth. Researchers have found a strong relationship between the ACSI and some important macroeconomic indicators. For instance, the National ACSI score has proven to be a strong predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE) growth.
- Predicts stock prices. In a 2007 paper published in the Journal of Marketing, a hypothetical, back-tested portfolio of stocks chosen based on their performance in ACSI was shown to significantly outperform the New York Stock Exchange (the Dow), the NASDAQ and the S&P 500.
- Proves the cause-and-effect relationship between customer satisfaction and financial performance at the company level, in terms of market value, revenues and cash flow
ForeSee Results owns and applies the methodology of the American Customer Satisfaction Index (ACSI) to measurement of online customer satisfaction to help clients determine how to improve customer satisfaction and ROI.
Applying the ACSI to Online Measurement
ForeSee Results applies the ACSI methodology to capture voice of customer data through scientifically designed and deployed online customer surveys. The ACSI methodology allows companies to identify which specific aspects of a website (search, navigation, content, etc) have the greatest impact on overall customer satisfaction and online customer retention. Using the ACSI online enables:
- An assessment of overall satisfaction
- Continuous and real-time measurement of specific elements of overall satisfaction
- Strategic planning to impact and improve future satisfaction
- Prediction of future customer behaviors, such as likelihood to return, recommend, or purchase.
- Segmentation according to visitor type, loyalty, etc.
- Benchmarking against competitors and best-in-class firms.
Technology
ForeSee Results gathers customer input from an online survey that typically is presented to a random sample of online site visitors who accept an invitation to provide feedback. The survey contains two types of questions: ACSI model questions (where respondents rate overall satisfaction and different aspects of the web experience, e.g., search, on a 10-point scale) and open-ended or multi-choice “custom” questions. The survey can usually be completed in 2.5 to 3.5 minutes.
Survey data is continuously analyzed using ForeSee Results’ proprietary calculations based on the ACSI methodology. Clients receive regular reporting and analysis.
Overall satisfaction scores are reported on a 100-point scale, and the ACSI model questions determine which drivers of satisfaction have the greatest impact on future behaviors, such as likelihood to return to the site, recommend, purchase online or offline, etc.
The survey pop-ups can be blocked by configuring the Ad Block Plus extension in Mozilla Firefox to block */foresee-trigger.js
ForeSee Results Benchmarks
ForeSee Results has a national benchmark of more than 400 organizations in the private and public sectors, allowing companies to measure their performance against a national average.
ForeSee Results also has industry-specific benchmarks, including retail, financial services/insurance and federal government. Clients can also compare satisfaction levels against Fortune 500/200 benchmarks and against benchmarks of specific website functionality being measured, such as check-out abandonment and browsing. Syndicated research by ForeSee Results, e.g., the Top 100 Online Retail Satisfaction Index, provides another means to compare performance.
For a broader perspective, ForeSee Results can also provide benchmarks of overall customer satisfaction (beyond the website) for the 43 industries measured by the ACSI.
Major Research
ForeSee Results releases several major national research reports and indices each year, including:
- The Top 100 Online Retail Satisfaction Index (measuring customer satisfaction on a 100-point scale with the top 100 online retailers by sales volume)
- The Top 40 Online Retail Holiday Index (measuring customer satisfaction with the Top 40 retailers each holiday season)
- The Forbes.com/ForeSee Results Online Banking Study (examining what issues are emerging as the most important in e-banking)
- The quarterly ACSI E-Government Index (measuring citizen satisfaction with more than 100 federal government websites)
- ForeSee Results is a sponsor of the American Customer Satisfaction E-Commerce Report (released every February and measuring e-retail, e-travel, e-brokerage, and e-auction sites) and the E-Business Report (released every August and measuring search engines, portals, and news and information sites)
Board of Directors
- Claes Fornell, Ph.D., Chairman - CFI Group Worldwide
- Larry S. Freed, President & CEO - ForeSee Results
- Barry Goldsmith, General Partner - Updata Partners
- Noah Walley, Managing Director - Investor Growth Capital US
- Sheri Teodoru, General Manager - CFI Group Worldwide
Competition
Other companies that collect Voice of Customer data and Online Customer Satisfaction include:
BizRate: Customer satisfaction surveys are collected as part of a marketing model, enabling participating companies to display a 5-point scale customer rating. Survey invitations are emailed to panelists who shop at the sites and incentives are used for panel recruitment.
CRMMetrix: Continuously Listen to website visitors to improve online and offline satisfaction, website perceptions and business impact. Offers global industry norms and benchmarks.
iPerceptions: collects online customer satisfaction with 11-point scale questions, offers free solution package.
OpinionLab: captures customer satisfaction data using opt-in page-level surveys.
See also
- Customer Satisfaction
- American Customer Satisfaction Index (ACSI)
- Web analytics
- Customer Relationship Management
- Market Research
References
The following is a partial list of academic research that has utilized ACSI data and drawn from ACSI findings. (For a more complete list, visit the ACSI website's Research Bibliography Page)
- Fornell, Claes, Sunil Mithas, Forrest V. Morgeson III & M.S. Krishnan, (2006), "Customer Satisfaction and Stock Prices: High Returns, Low Risk", Journal of Marketing, Vol. 70, January, 3-14. ).
- Fornell, Claes, David Van Amburg, Forrest Morgeson & Barbara Bryant, (2005). The American Customer Satisfaction Index at 10 Years. Ann Arbor: The Stephen M. Ross School of Business.
- Anderson, Eugene W., Claes Fornell & Sanal K. Mazvancheryl, (2004), "Customer Satisfaction and Shareholder Value," Journal of Marketing, Vol. 68, October, 172-185.
- Fornell, Claes, (2001), "The Science of Satisfaction," Harvard Business Review, Vol. 79, 3 March, 120-121.
- Fornell, Claes, Michael D. Johnson, Eugene W. Anderson, Jaesung Cha & Barbara Everitt Bryant, (1996), "The American Customer Satisfaction Index: Nature, Purpose and Findings," Journal of Marketing, Vol. 60, October, 7-18.
- Anderson, Eugene W., Claes Fornell & Donald R. Lehmann, (1994), "Customer Satisfaction, Market Share and Profitability: Findings from Sweden," Journal of Marketing, Vol. 58, July, 53-66.