Methodology

The CVI Assessment Methodologyidentifies the leading customer engagement companies through the following three-tier process:

1. Competitive Strength and Social Strength Screening
Competitive Strength is our measure of how well a company is meeting their customer’s expectations in combination with a history of generating economic profit. Social Strength, highlights the companies with the greatest potential to build “social capital” through authentic customer engagement. Using a patented customer research methodology from wRatings, we are able to identify companies with the highest levels of competitive strength by measuring customer expectations and experiences regarding a series of functional (12) and emotional (5) needs, and how those needs are being met by the companies in our universe at the point of sale. Through a proprietary back-tested algorithm, we’ve identified the subset of 9 of the 17 customer needs most closely correlated with social strength.

For the CVI 200 we start with the 2,000 plus companies with a market capitalization of over $1 billion that trade on the NASDAQ, NYSE and Toronto Stock Exchange. Through analysis of the perceived value as experienced by our customer and executive panel base of more than 200,000 respondents in 40 countries, this investable universe is narrowed down to 402 companies that are generating above average Competitive and Social Strength.

2. Social Attributes Assessment
Our proprietary Social Attributes Assessment℠ acts as a listening post to measure the quality with which companies are using social media to enhance customer relationships, organizational culture and community connections. It uses a Likert Scale of 21 social “attributes” that seek to measure the organizations' levels of authenticity, engagement and transparency. Using a weighted average of these three primary social attributes, the investable universe is screened down to 321 companies with a social media presence.

3. Ranking by Social Capital Score
In order to select the CVI 200 we combine the Strength analysis with the Social Attributes Assessment to arrive at our proprietary Social Capital Score℠. This ranks the final list of companies based on how well they are generating economic profit through customer engagement and a business built on broader social purpose.