Satisfied Customers Say They Will Come Back
← Chapter 171
Capstone 12 · Customer Insight Memo
Plain-language Brief

Satisfied Customers Say They Will Come Back

A strong link between two survey scales, and an honest note on what a survey can and cannot show.

To  Customer Experience Lead
From  Insight & Analytics
Re  Satisfaction and repurchase-intent survey
Where this comes from
Chapter Chapter 171 · Spearman Correlation: Satisfaction and Loyalty
Part Part XXVII · Capstone Projects: Statistical Testing
Dataset capstone-satisfaction-and-loyalty.xlsx
Notebook View the analysis

Recommendation

Bottom line

Satisfaction and stated repurchase intent are strongly linked (rank correlation 0.83, n = 182), which supports treating satisfaction as an early signal of retention. Two things temper it. Both answers came from the same person on the same form, which tends to inflate the link, and both are stated intentions rather than purchases. Before this drives a target, we should connect these survey answers to what those customers actually went on to buy.

What we found

182 customers rated their satisfaction and their likelihood of buying again, each on a 1-to-7 scale. The two answers track each other closely: as satisfaction rises, so does stated intent, with a rank correlation of 0.83. A result this strong on a sample this size is not something chance produces (p < 0.001). Customers at the low end of satisfaction are telling us plainly that they do not expect to return.

A bubble grid of repurchase intent against satisfaction, with larger bubbles running from the bottom left to the top right.
Figure 1. Each bubble is a combination of the two answers, sized by how many customers gave it. The weight of the responses runs from the bottom left to the top right, which is the pattern we would hope to see.
Bar chart: a rank correlation of 0.83 against 0.30, which is what a weak link would look like.
Figure 2. How closely satisfaction and stated repurchase intent move together.

A word on the method, because it affects what you can quote

Survey scales look like numbers but behave like labels. A 6 is more satisfied than a 4, yet nobody can say the gap between 4 and 5 is the same size as the gap between 6 and 7. So we used a method that relies only on the ordering of the answers rather than on the numbers themselves. The practical consequence for reporting: please avoid headlines such as 'average satisfaction is 4.6'. That figure quietly assumes the equal spacing the scale does not give us. The share of customers answering 6 or 7 is a sturdier number to publish.

What we cannot say

This is one survey taken at one moment. It shows that two answers agree with each other, which is a weaker claim than showing that satisfaction drives revenue. It is entirely possible that a customer in a good mood marks both scales highly, and that some of the strength we are seeing is simply that. The way to settle it is to match these respondents to their purchase records over the next two quarters, at which point we would be measuring loyalty instead of asking about it.

Suggested next step

Keep fielding the survey, but add consent to link responses to account activity. A follow-up that compares stated intent against observed repurchase would tell us not only whether satisfied customers say they will return, but how many of them do.

From Statistics, Data Science and AI: A Visual Handbook by John Fisher. Every statistic, table, and figure in this report is reproduced by the companion notebook.