Average Index – The quick guide

What is the Average Index and How Does It Work?

The average index is a measurement that estimates customer satisfaction. It is typically used together with 5-scale survey questions, although it can support any scale in use. Respondents are asked to rate their satisfaction on a scale of 1 to 5, with 5 indicating the highest level of satisfaction. The results are then averaged to create a customer satisfaction score.

Using the Average Index to Measure Customer Satisfaction

One of the key features of this index is that it only includes the most satisfied respondents who have rated their experience as 4 or 5. This results in a percentage of positive answers, which gives a clearer indication of overall satisfaction levels.

There are many use cases, similar to our standard Happy Index (link), which measures happiness levels. It is typically used to measure customer satisfaction on a specific topic at a certain moment. For example, a business owner may use the average index to measure customer satisfaction after introducing operational changes such as staff schedules.

Benefits

One of the main benefits of using an average index is that it’s easy to understand and straightforward to use. This makes it ideal for larger studies and surveys, as it doesn’t require complex calculations or statistical analysis. By using an average index, businesses can quickly and easily measure customer satisfaction and identify areas for improvement.

Limitations

However, it’s important to note that the average index can sometimes be inaccurate and is unable to measure all attitudes towards an issue. Another limitation is that it focuses on positive responses only, meaning that it does not take negative feedback into account. To get a complete picture of customer satisfaction, it’s important to also consider negative feedback and work to address any issues that arise.

In conclusion, while the average index is a useful tool for measuring customer satisfaction on a specific topic, it has some limitations when it comes to accuracy and measuring all attitudes towards an issue. Additionally, we believe that the 4-scale approach of the Happy Index can be better at capturing customer sentiment since it doesn’t allow for a neutral response. At the end of the day, however, it is up to you and your specific use case and other metrics to define the best option.

Want to learn more about customer satisfaction data? Check out HappyOrNot Analytics