Customer Satisfaction: Investment Survey Evaluation

Customer Satisfaction: Investment Survey Evaluation and Critique

There are a number of problems with the methodology of the study. First of all, using the telephone is not necessarily a good idea, because it does not specifically target the securities trading firm's clientele. The central aim of the study must always be kept in mind, namely is the securities trading firm losing clients to online investment services? At very least, the study should specifically focus on a list of the firm's clients that have agreed to make their phone numbers available for a survey, within conventional business hours, or the firm should send paper surveys with SASEs to a mailing list of representative clients, or brokers should give surveys to clients after they have used the broker's services, which can be returned immediately upon completion.

Calling people and asking them "have you invested in money in the stock market?" indicates that the brokers may not be calling individuals who are the core clients. Perhaps the typical firm's client does not answer phone interviews. Secondly, the question of whether the respondent manages his or her own investments or uses an investment firm shows the unfocused nature of the survey. Instead, the questionnaire should specifically call people who are current users of the firm's services, individuals who have recently left the firm, and only then perhaps a control group of randomly selected investors from outside of the firm.

Satisfaction is often a critical area of interest in surveys, but what makes a person satisfied with a firm may vary. At least there are follow-up questions about what makes an investor satisfied in the current survey, and there are also inquiries about the importance an investor attaches to particular financial services, as well as questions about the importance of having personalized investment counseling in general. But the survey focuses on such factors as the commission charged by firm, personal service, return on investment, and investment counseling and not upon Internet services and the added value Internet may be perceived to add to investors. Not addressing Internet services means that the survey does not address the original purpose of the study, namely if the firm's core constituents are leaving the firm because of the perceived greater value generated from using Internet firms.

Duration of time of investing with and using a particular brokerage firm is important, although a follow-up question should be included as to how long the individual has been investing in general, as a person who has been investing for 40 years and is with the current firm for 3 months may have a different profile from someone who has only been investing for 3 months in general, meaning that that investor has only been involved with one firm for the duration of his or her investment career. Also, the question of proportionality must be addressed regarding how much capital the individual has invested, regarding the individual's assessment or risk and the importance of investing. An individual with a large income only investing $10,000-50,000 is someone with a less investment-focused financial profile than someone investing that same amount with a low income, indicating a higher appetite for risk and desire to invest in the stock market.

In terms of profiling respondents, age and risk aversion may be critical determinants in terms of which investors prefer Internet firms over brick and mortar investment companies. The question of how often the person desires broker contact is relevant, given that the desire for such a personal relationship is an important factor in an individual's selection of financial services online or with a small trading firm. The more someone wants personal contact, very likely, the more he or she is willing to use a real-life broker, specifically a broker at a small firm. But the question of how important the investor thinks it is for a broker to know personal details about family, profession, or hobbies seems potentially irrelevant, rather a specific question about the relevance of family profile and in terms of future financial goals should be included instead.

New Questionnaire

Are you a user of the services of investing firm x?

How long have you been using investment firm x?

Are you using any other investment firm to manage your assets at present?

What was the most important factors in choosing your current investment firm -- a. size of firm, b. contact with representative, c. recommendation from a friend d. commission fees e. returns on investments

How would you rate your level of satisfaction with your current investment firm? a. very satisfied b. satisfied c. neutral d. somewhat dissatisfied e. not satisfied at all

Do you have an Internet connection at home?

Are you comfortable using the Internet for financial services, such as online bill pay, etcetera?

What is your age range? a. under 30 b. 30-60 c. 65+

If you are not comfortable with the Internet when using it for financial services -- why? a. security b. lack of personalized services c. lack of paper trail

Do you use the Internet to track your investments?

Have you used an online brokerage firm?

If so, are you currently using such an online service?

What do you like about using the Internet as opposed to using a traditional investment firm? a. convenience b. low commissions c. anonymous nature of service

If you are not currently using the Internet to buy and sell stocks, are you considering shifting to an online service, as opposed to a traditional investment firm?