Investor's Business Daily and TechnoMetrica partnered to
conduct the study of online brokers on which this special report
Our goal was to measure the customer experience and
with their primary online brokers. We divided the research into
In Phase I, we identified and ranked the broker
characteristics most important to investors. The editors of IBD
and TechnoMetrica identified 20 potential attributes of online
brokers to evaluate.
Last August, 1,400 visitors to IBD's Investors.com
participated in the Phase I
The survey tested 20 potential attributes using the MaxDiff
method, which helps determine the relative importance of
attributes. Investors were presented with combinations of the
attributes and asked to identify which attributes were most and
least important to them.
Based on Phase I data, TechnoMetrica narrowed the 20
attributes to 12. We also developed the weights that should be
assigned to each of the 12 attributes to compute an Overall
Customer Experience Index for each broker.
In Phase II -- from September to November -- 10,250 visitors
to the IBD website took part in the survey.
Of the 34 online brokers explicitly listed in the
questionnaire, 16 had at least 100 respondents.
Our analysis in this report is limited to the 16 brokers.
Survey respondents rated their past six-month experiences with
their primary broker using a five-point scale (Excellent, Very
Good, Good, Fair and Poor) for the 12 attributes.
For each broker attribute, we developed a Customer Experience
Index using the question: Based on your experience with your
primary online broker during the past six months, how would you
rate your primary online broker?
We measured the Customer Experience Index as the difference
between the percentage of respondents giving ratings of Excellent
and Very Good and the percentage who gave ratings of Fair and
For example, if 30% of respondents rated customer service of a
broker as Excellent, 26% Very Good, 20% Good, 13% Fair and 11%
Poor, we calculated the Customer Experience Index to be 32% (56%
This report presents the five brokers with the highest
Customer Experience Index for each of the 12 attributes.
To arrive at our Overall Customer Experience Index, we
combined the subindexes for all 12 attributes using the weights
we developed in Phase I. The five online brokers with the highest
ratings in this index make up our Top Overall Customer Experience
Mayur is president of TechnoMetrica Market Intelligence.