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Customer satisfaction

2016

Selected Works

Articles 1 - 2 of 2

Full-Text Articles in Business

Are Nonfinancial Metrics Good Leading Indicators Of Future Financial Performance?, Don . O'Sullivan, Vincent O'Connell May 2016

Are Nonfinancial Metrics Good Leading Indicators Of Future Financial Performance?, Don . O'Sullivan, Vincent O'Connell

Don O'Sullivan

It’s become increasingly popular to use nonfinancial measures such as customer satisfaction in performance management frameworks and executive compensation schemes. But how well does that work?

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Association Of Nonfinancial Performance Measures With The Financial Performance Of A Lodging Chain, Rajiv D. Banker, Gordon S. Potter, Dhinu Srinivasan Jan 2016

Association Of Nonfinancial Performance Measures With The Financial Performance Of A Lodging Chain, Rajiv D. Banker, Gordon S. Potter, Dhinu Srinivasan

Gordon Potter

A test of nonfinancial measures used as part of a management-incentive program by a U.S.-based, full-service hotel chain found that improvements in the nonfinancial measures were followed shortly by increases in revenue and profit. The two nonfinancial measures are customer satisfaction as measured by guests’ comment card indications of likelihood to return and level of complaints. The lag between the nonfinancial measures and changes in revenue and operating profit was six months in this case. While the test applies directly to that one chain, the lesson is important to the rest of the hotel industry.

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