Defining customer satisfaction
Because the concept of customer satisfaction is new to many companies, it's important to be clear on exactly what's meant by the term. Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service. The achievement of customer satisfaction leads to company loyalty and product repurchase. There are some important implications of this definition: Because customer satisfaction is a subjective, nonquantitative state, measurement won't be exact and will require sampling and statistical analysis. Customer satisfaction measurement must be undertaken with an understanding of the gap between customer expectations and attribute performance perceptions. There should be some connection between customer satisfaction measurement and bottom-line results.
"Satisfaction" itself can refer to a number of different facts of the relationship with a customer. For example, it can refer to any or all of the following: Satisfaction with the quality of a particular product or service Satisfaction with an ongoing business relationship
Satisfaction with the price-performance ratio of a product or service Satisfaction because a product/service met or exceeded the customer's expectations
Each industry could add to this list according to the nature of the business and the specific relationship with the customer. Customer satisfaction measurement variables will differ depending on what type of satisfaction is being researched. For example, manufacturers typically desire on-time delivery and adherence to specifications, so measures of satisfaction taken by suppliers should include these critical variables. Clearly defining and understanding customer satisfaction can help any company identify opportunities for product and service innovation and serve as the basis for performance appraisal and reward systems. It can also serve as the basis for a customer satisfaction surveying program that can ensure that quality improvement efforts are properly focused on issues that are most important to the customer. Break-down of the Definition of Customer Satisfaction
Customer satisfaction is a measure of how well our…
PRODUCTS- Products including physical products and services. SERVICE- Customer service post sale. This includes responding to customer queries and issues. SUPPORT- Repair, maintenance and upkeep of your products post sales. ENGAGEMENET- Engaging with customer, apart from the above mentioned contexts (product, service and support). This includes offering new products, schemes, up-sell and cross-sell. …are able to meet the customer…
EXPECTATIONS- Customer satisfaction is your delivery vis-a-vis the expectations. The way a customer interprets your delivery also defines customer satisfaction. Customer satisfaction is driven by how well you manage your delivery and how well you manage customer expectations.
Purpose of customer Satisfaction:
A business ideally is continually seeking feedback to improve customer satisfaction. Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold: 1. Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company’s goods and services 2. Although sales or market share can indicate how well a firm is performing currently, satisfaction is an indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes. On...
Please join StudyMode to read the full document