[2024 NCSI] AI-Driven Electronics A/S Achieves Highest Customer Satisfaction and Retention Rates

2024 NCSI 78.0 Points... Down 0.2 Points from Previous Year
Severance Hospital Tops Overall with 84 Points
Mid-to-Lower Tier Companies Need Long-Term Customer-Centric Management Strategies

This year, customer satisfaction with companies and public institutions has been found to have declined compared to the previous year. Since 2010, the National Customer Satisfaction Index (NCSI) had shown a continuous upward trend but has been slightly decreasing since last year. Despite companies’ active customer-centric management, it is analyzed that the difficult domestic and international economic conditions and the increasing proportion of customers seeking rational consumption have influenced this trend.

On the 26th, the Korea Productivity Center announced that the NCSI survey of 309 companies, universities, and public institutions across 80 domestic industries recorded a score of 78.0, down 0.2 points from 78.2 in 2023. This survey was jointly organized by the Korea Productivity Center and the University of Michigan in the United States, with support from the Ministry of Trade, Industry and Energy.

A Severance Hospital staff member is guiding a patient to the convenience facilities. Photo by Severance Hospital

Among the 309 surveyed companies, the highest score was received by Severance Hospital in the hospital sector. Severance Hospital, which scored 84 points, maintained its position as the overall No. 1 in the NCSI for this year following last year. Among the 'Top 11' with customer satisfaction scores above 82 points, six hospitals including Severance Hospital were listed out of 13 surveyed hospitals. This reflects efforts to maintain the level of hospital services in Korea despite the turmoil caused by this year’s medical-policy conflicts. Also included in the Top 11 were Samsung C&T Corporation in apartments, Samsung Electronics Service and LG Electronics in electronic product A/S, and Yeungnam College of Science and Technology in specialized colleges.

Mid-to-Lower Tier Companies Need Long-Term Customer-Centric Management Strategies

By economic sector, excluding the newly surveyed 'Associations and Organizations, Repair and Other Personal Services' sector among 15 sectors, six sectors showed an increase compared to the previous year, while eight sectors declined. The sector with the highest NCSI improvement rate this year was 'Educational Services,' which rose by 1.4 points (1.8%) compared to the previous year. All industries within this sector, including national universities, private universities, and specialized colleges, showed score increases compared to the previous year. Following educational services, construction and durable goods manufacturing rose by 0.8 points (1.0%). Next were transportation and warehousing with a 0.7-point (0.9%) increase, business facility management, business support and rental services with a 0.4-point (0.5%) increase, and information and communications with a 0.3-point (0.4%) increase.

By industry, among the 73 industries for which year-on-year comparison is possible, eight industries showed an increase in customer satisfaction, slightly down from 11 industries the previous year. Fifty-seven industries remained stagnant, and eight industries declined compared to the previous year. A Korea Productivity Center official stated, "There were 16 industries where the No. 1 company changed and 16 industries with joint No. 1 rankings, indirectly confirming how fierce the competition was to capture customers’ hearts. While the efforts of leading companies have raised the overall customer satisfaction levels among top-tier companies, mid-to-lower tier companies’ customer satisfaction efforts have not kept pace, resulting in a widening gap. A long-term customer-centric management strategy is absolutely necessary."

Electronic Product A/S Shows High Levels of Customer Satisfaction and Retention

When comprehensively considering customer satisfaction, customer retention rates, and top-ranking companies in customer satisfaction, the industry evaluated at the highest level this year was the newly included electronic product A/S sector. Industries with high customer satisfaction and retention rates indicate a higher proportion of customers who are satisfied and likely to remain. It was analyzed that in most industries, as customer satisfaction increases, customer retention rates also rise. Furthermore, an increase in customer retention leads to a higher proportion of premium customers, which is significant for companies as it enhances the long-term growth potential of the industry.

In the electronic product A/S sector, it was evaluated that they helped customers’ convenient use by operating 'Weekend Care Centers' or providing night services so that office workers, who face restrictions in receiving services during weekdays, could use services on weekends. Additionally, systematic efforts to improve customer convenience, such as diagnosing product conditions based on various artificial intelligence (AI) technologies and enabling real-time monitoring of abnormalities, led to the highest evaluations in customer satisfaction and retention rates.