An Analysis of Customer Satisfaction and an Organizational Financial Performance

Only available on StudyMode
  • Download(s) : 67
  • Published : May 26, 2013
Open Document
Text Preview
An Analysis of customer satisfaction and its financial impact on the organization

Introduction to Chapter;: All organizations aligned to providing a good or service to a customer This chapter will see to outlin
Background
Every organization deals with the customers at some level, despite what the inner workings are composed of; the absolute end result is satisfying the customer each and every time that he or she uses the good or service that is being offered by the organization. Every contact that is made via telephone, face to face, letters or email can either cultivate or corrode the relationship with the customer thus affecting the overall satisfaction of the customer. Customer satisfaction is defined as the degree of satisfaction provided for the use of a good or service by an organization. In addition to this it gauges at measuring how the service provided meet or exceed the overall expectation of the customer while evaluating the overall satisfaction by the number of repeat customers. Previous studies have shown that satisfied customers generally tend to have a positive impact on a firm financial performance although the magnitude of the impact is highly variable. More so, it is said that happy (satisfied) customers spend more and are loyal thus impacting over 1000 top businesses by € 14 billion per year (Zeithaml (2000) and Rust et al. (2002) Researchers have found that firms in Europe suffer a 37.6 million loss of profits every year and an average of 28 percent of revenue wastage on accounts payable due to customer dissatisfaction (Bielenberg, 2006). In addition to this, it is said that disappointments have been on the rise with the over emphasis on the use of aggregate financial performance measures, indicating that they are to late, too distorted ,too focused on past results and not focused on the root issue affecting the financial impact of the organization. As such previous studies recognized that customer satisfaction is one that is more actionable, less aggregate and more forward looking (Kaplan and Norton, 1996). Researchers contended that satisfied customers will have a positive impact on financial performance, simply because firms that are able to satisfy their customers are more than likely to retain existing customers, increase customer profitability, acquire new customers, lower wastage on accounts payable, maximize profits and maintain a good image. Therefore this study is based on a service organization and it seeks to create an analysis of customer satisfaction as it significantly relates to the overall financial impact caused to the organization. Over the last few years the degree of customer satisfaction offered at the facility have been on the decline with complaints streaming from security offices on entrance to the facility right up to general administration and the use of the event halls. The Purpose Statement

The purpose of this study is to investigate customer satisfaction as it relates to the financial performance at the Dr. Joao Havelange Centre of Excellence. Justification of the Study
To bring awareness to both management and staff on the financial impact that is caused to the organization as it relates to the overall satisfaction of customers. Significance of study
To improve the quality of service offered at the Centre of Excellence while creating new strategies within the service department that is aimed at decreasing dissatisfaction among all clients (repeat and first time customers) To decrease accounts payables – Can your study decrease accounts payable or draw managements attention to key issues which may lead to or can be used to … To regain a positive image of the organization

Assumption of study
There is no significant relation between customer satisfaction and the impact of finances at the organization The targeted population will be willing to participate in the study. Participants will answer honestly…

Chapter Summary
An organizations aligned to...
tracking img