ServiceRage Adds Star Ratings

By , 12 Jun 2013.

It is now even easier to find the best customer service, with this week’s launch of star ratings on ServiceRage.

Each company on ServiceRage is rated out of five by comparing their customer feedback on social media against other companies in their industry.

We think the stars are the best way to quickly judge the performance of a company for two reasons. Firstly, the familiar five-star symbol is used on many rating and review sites across the web so it is easy to digest. Secondly, the stars take into account the negative bias in customer feedback.

The negative bias means that customers are more likely to provide feedback if they are unhappy. The phenomenon is common across all customer service channels, both online and traditional. It varies by industry, but overall we find that about a quarter of relevant comments are positive and three quarters negative.

However, this doesn't necessarily mean that most customers are unhappy. Many of us are just more inclined to speak out after bad experiences than after good ones. This negative bias means that the absolute split of positive to negative comments for each company is less important than the relative split compared to other companies in the industry. Good companies are the ones beating the industry average.

To calculate the stars we identify the average split for the industry. Companies around this level are allocated two and a half stars. Then we find the splits of the best and worst performers in the industry and use statistical techniques to allocate stars to all the other companies according to how they compare to these benchmarks.

The stars are industry specific so they cannot be used to compare companies from different industries. We do not allocate stars to companies with less then 10 relevant comments, as there is not enough data to identify a pattern to their customer service.

We will continue to show the percentage split of positive and negative comments for each company. The new stars are a complement not a replacement. We believe that our users should have access to the raw numbers and the comments themselves, so that they can see how we generated the stars and make up their own mind.

What do you think of the stars? Please leave a comment below and let us know.