Measuring Customer Satisfaction

Topics: Customer satisfaction, Measurement, Consumer behaviour Pages: 5 (1485 words) Published: April 7, 2013
This paper covers the best available practice for Measuring Customer Satisfaction, how it relates to my organization’s current practices for measuring satisfaction of customers and provides a detailed analysis of our current trend in meeting or exceeding these best practices. Customer satisfaction measurement allows an organization to understand the issues, or key drivers, that cause satisfaction or dissatisfaction with a service experience. When an organization is able to understand how satisfied its customers are, and why, it can focus its time and resources more effectively. Customer satisfaction measurement may also enable an organization to understand the extent to which satisfaction with a service is influenced by factors outside of its control (such as the media) and to differentiate between what people say influences how satisfied they are, and what is really driving their satisfaction during a service experience. Customer satisfaction measurement can help an organization understand what it can and cannot control. Most importantly, customer satisfaction measurement helps an organization focus on its customers, and should galvanize service owners, customer-facing staff, policy, strategy and research staff, as well as senior management, around the aim of improving the customer experience.

Identification of best practices
There are several suggested ways to measure customer satisfaction. Key amongst those is: 1. Net Promoter - In 2003, Fred Reichheld introduced the concept of a Net Promoter Score, a simple, and therefore popular, way to measure satisfaction. The Net Promoter Score required the measurement of only one question: “How likely are you to recommend (your company) to a friend or colleague?” This single question enabled firms to easily measure customer satisfaction. They interpreted the results by subtracting the detractors (those who rate the firm 0-6 on a 10 point scale) from the promoters (those who rate the firm a 9 or 10), to determine the net promoters. The simplicity made adoption of the methodology swift as companies around the globe began asking the “one question” they needed to fully understand satisfaction. This has been a leading edge measure for many companies because it helps them identify opportunities to improve customer satisfaction. Some have thought about this method as being one dimensional and therefore have instituted several other dimensions which included what the satisfied customer planned to purchase with the business and what they would do if the business went away.

2. Customer Survey/ Questionnaire:
You can provide surveys in several ways (through mail, email, or over the phone) and in order to get the best information, you should allow customers to answer questions on a weighted scale (as in “Rate your experience on a scale of 1 to 5 with 1 indicating complete dissatisfaction and 5 indicating complete satisfaction”). You may also want to survey repeat customers to see how their experience changes over time. There are four broad types of question that make up the majority of most customer satisfaction questionnaires: ● Overall rating measures

● Service-specific questions

● Customer priorities

● Customer characteristics
There are four main data collection methods that can be used to conduct a customer satisfaction survey: ● Face to face (in the customer’s home)
● Telephone
● Postal
● Online

The choice of data collection method will depend on a number of key factors that are summarized and discussed below. Certain types of customer are more likely to take part in a survey than others. For example, customers who are very dissatisfied (or very satisfied) may be more likely to respond to a survey than those in the middle. When this happen the survey findings can be misleading and, as a result, specific actions taken in response to the survey could actually make the overall customer experience worse. Decisions about the data collection...

References: (at least three).
October 21, 2010 Best Practice in measuring customer satisfaction,
Quality Digest Magazine, Kevin Cacioppo, Measuring and Managing Customer Satisfaction
September, 2000
Stop Measuring Customer Satisfaction and Start Understanding It
Kimberly A. Whitler Sep. 7, 2012
HOW TO MEASURE satisfaction, HM Government, November 2007
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