Customer satisfaction is a measure of the degree to which a product or service meets the customer's expectations. Satisfaction results when expectations are equaled or surpassed. Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business. Increased competition at the market place presented more and more options before the customers. The emergence of buyers market forced marketers to treat the customers like king. This change in the market dynamics affected one dimension of customer behaviour very badly and that was “Customer Loyalty”. With very little difference offered to the customers on product quality, price, placement and promotion front by the marketers, the difference was tried to be created with treatment and subsequent satisfaction the customers would get. Besides, several researches also brought the fact to the fore that retaining existing customers was more economically beneficial than mere going in for acquiring new ones. Serving Customers better and satisfying them with the overall experience became a tool for lasting relationship with the customers.
Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. An assessment of the product or service quality provided by a business that measures how loyal its customers are. Customer retention statistics are typically expressed as a percentage of long term clients, and they are important to a business since satisfied retained customers tend to spend more, cost less and make valuable references to new potential customers. Customer retention refers to keeping a client's business rather than have the client use competitors' services or products. Businesses want to reduce customer defections to their competitors because a reduction in their market share and profits could result. Customer service retention is a popular marketing strategy as it involves focusing on meeting or exceeding clients' expectations in order to maintain their loyalty. When people feel loyal to a certain brand or business, they're less likely to be persuaded by a competitor's ads and offers. If a consumer has a negative shopping experience with a company, he or she may deal with that business less often or not at all. If the firm sincerely apologizes and takes the time to have a polite representative telephone the customer occasionally to see how they can meet his or her needs, however, the consumer may reconsider and keep dealing with that company despite any past unpleasantness. Satisfaction surveys about customer service, as well as a store's products, can help a business find areas of improvement that may help it retain customers. Short, thoughtful surveys that ask for the customer's opinion can be seen by consumers as a sign that the business does care about the people it serves. When companies really listen to their clients and are willing to make changes to please them, it can lead to successful customer retention. Studies show that it's much less expensive for a company to spend money on customer retention than on acquiring new clients. Even smaller strategies, such as holding a customer appreciation day or remembering client birthdays, help in creating consumer loyalty. Of course, no strategy can make up for a poor product or consistently bad service. Companies who regularly monitor their daily operations as well as make any needed improvements are the most likely to have success in retaining their customers.
1.2 COMPANY BACKGROUND
TOYOTA KIRLOSKAR MOTORS (TKM):
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