...Measuring Customer Satisfaction Customer satisfaction is perhaps one of the most talked about challenges of organizations in the public and private sectors. Indeed, this represents every organization’s sole purpose, and is at the heart of every organizations mission statement. It is seen as a key differentiator and increasingly has become a key element of business strategy. Customer satisfaction is tied directly to profitability. “Customer wants and needs drive competitive advantage, and statistics show that growth in market share is strongly correlated with customer satisfaction.”(Evans, 2010). If your customers are happy, they tend to be loyal. And if they’re loyal they not only buy more, they refer other customers. It is critical to give customers the opportunity to provide feedback about their overall satisfaction level and specific likes and dislikes. A company will lose business, miss growth opportunities, and put itself at a competitive disadvantage without an effective customer satisfaction research program in place. Therefore, it is very important to the success of the business to know right away if they are doing something that frustrates or dissatisfies the customers. According to Evans & Lindsey (2009) in Managing Quality, “To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement” (pg. 190). A customer satisfaction program...
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...Measuring Customer Satisfaction Introduction Customer satisfaction measures how well a company's products or services meet or exceed customer expectations. These expectations often reflect many aspects of the company's business activities including the actual product, service, company, and how the company operates in the global environment. Customer satisfaction measures are an overall emotional evaluation that is based on the customer's lifetime of product and service experience. In today’s world customer satisfaction is very important in order to continue to have a business because with no customers there is no business. Identification of best practices There are several means for measuring customer satisfaction including surveys, focus groups, complaint analysis and user groups. The most common used is surveys as it is the only way to get customer feedback unless they contact you, which most people are too busy to bother with unless they are extremely upset for some reason. Surveys can be provided in several way through mail, email or over the phone and the best way to get information is to allow customers to answer questions on a weighted scale for example on a scale of 1 to 5 with 1 being dissatisfied and 5 being satisfied. Types of industries All industries can utilize these best practices that have customers such as retail, manufacturing and service industries. According to the text, in 1994, the University of Michigan Business School...
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...manager position at the most important of all the bank branches in the Los Angeles area – the Financial District office. Until this year his performance exceeded expectations in every single year. His financial results have been truly impressive. However with the introduction of the new performance scorecard which reflected the company’s broadening of the evaluation scope to customer satisfaction score, it became obvious that this was essentially the only area where James’ performance was lacking. At the same time Frits Seegers, President of Citibank California, was convinced that customer satisfaction indicator was important not only for meeting ever-increasing expectations of highly-sophisticated clients, but also for achieving strategic goals of the division, and staying competitive. Since five of the six performance measures in James’ year-end evaluation were “above par”, the customer satisfaction rating was the only one that caused a significant challenge and had substantial financial repercussions for James’ year-end bonus, which was a significant part of his base salary. Based on his customer satisfaction scores, which was “below par” according to the banks written guidelines,...
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...ISSN 2277-8616 Impact of Customers Satisfaction And Customers Retention on Customer Loyalty Inamullah khan Abstract-The purpose of this study is to examine the importance of future customer’s relationship using customer satisfaction, and customer retention on customer loyalty in telecom industry of Pakistan. Questionnaires were distributed through electronic mail and self administered for data collection and linear regression analysis was used. The results show that customer satisfaction has significant while customer retention has insignificant impact on customer loyalty. The implications of the study are that a company should better manage their relationships with the customers as a competitive policy in mobile telephone marketplace. The weak side of the study is that it is limited to a single industry of mobile telecom industry. Key words: Customer satisfaction, Customer retention, Customer loyalty Jel code: M30 ———————————————————— 1. Introduction Customer loyalty is the focus in the research and It turn into an important concern for management only due to concentrated competition especially in service industry (Bodet, 2008). In emerging business, competition customer loyalty plays very crucial role for achieving the competitive advantages (Lin & Wang, 2006). It is significant important to analyze it in the context of customer retention and customer satisfaction, these two variables are of immense important to analyze the customer loyalty. Firms can maximize level...
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...insightful, educated evaluation of whether it is something worth contributing time, cash and human assets in. (Taylor, 1995) The Customer Satisfaction Survey is a tool which majority of the organizations use to gain feedback with respect to the products or services they offer, Customer Satisfaction Survey can do wonders for the organization since it provides them the specific areas to target to improve their operations or quality of the goods or service they provide. This activity allows the organization to set a benchmark so that in the future they may improve their activity and compare it with the results of the previous survey. This all keeping in mind that the customer actually provides a truthful response to the survey. Now the issue we face is not truthful response of the customers the issue which has arisen is the relevance of the questions asked in the questionnaire to the customer or the importance the customer assigns in his/her mind to each aspect of the product. Our survey is not to analyse the satisfaction derived by the consumption of a good or a service, but this particular survey is based on whether if there is any possibility that if any such elements exist whose absences or negligence in the survey might yield a negative result or have disastrous effect on an organization. 1.2 Problem statement Missing elements in customer Satisfaction Survey 1.3 Hypotheses H1 - it is important to...
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...investigate the application of measuring customer satisfaction and to demonstrate how colleges and university can enhance their existing processes for measuring the student satisfaction of their service provision. The basic goal of customer satisfaction measurement is objective quantification of subjective perception of consumers. The findings of customer satisfaction study can provide information on how to retain existing customers and attract new one. Customer satisfaction is tied directly to profitability. If your customers are happy, they tend to be loyal. And if they’re loyal they not only buy more, they refer other customers. Well-established research by Bain & Company found that, for many companies, an increase of 5% in customer retention can increase profits by 25% to 95%. The same study found that it costs six to seven times more to gain a new customer than to keep an existing one. 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. Identification of Best Practices Today, competition is fierce, and customers have more options than ever -- a tough combination for smaller companies trying to gain market share. The Net Promoter score is identified as one of the best practices when it comes to measuring customer satisfaction. According to (Brown 2010), the...
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...claim that customer service and customer satisfaction are a priority. However few organizations today have a system in place to ensure that they are delivering ultimate satisfaction to their customers. Delivering great customer service and providing ultimate satisfaction takes both understanding what your customers want and a way to see that they receive it (Why and How to Measure Customer Satisfaction). As a result, the market for customer satisfaction research continues to grow. I will be identifying the best practice of customer satisfaction measurement, make linkage to my organizations practices and finally make recommendations for improvement. Identification of Best Practices Customer satisfaction can be directly linked to the bottom line of any organization. Customer wants and needs drive competitive advantage, and statistics show that growth in market share and financial success are strongly correlated with customer satisfaction (Evans). Several methodological approaches are used in order to define, measure and analyze customer satisfaction (Evangelos). The best practices of gathering such information include surveys, focus groups and Internet monitoring. Surveys Surveys are some of the easiest practices of gathering customer likes and dislikes. Without interruption, the surveys provide an effective way for customers to communicate with the organization. The communicated data is valuable in that the organization is obtaining it directly from the customer. In addition...
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...Measuring Customer Satisfaction Introduction In order to have a successful business, there must be customers. Customers are considered those who obtain goods or services. Clients may be viewed as those who seek professional advice or guidance. Those who acquire, or agree to acquire, ownership (in case of goods), or benefit or usage (in case of services), in exchange for money or other consideration under a contract of sale are buyers or purchasers (Business Dictionary Definitions, 2011). However businesses view themselves as having customers, clients, buyers, or purchasers, it is important for them to recognize who they are and what it takes to keep them. Years ago the idea was that satisfied customers had a huge impact on the success or performance of the company. Most researchers defined customer satisfaction in terms of how well the company’s goods or services does compared to the expectations of the customer. Some even view customer satisfaction as a characteristic of a total quality culture in an organization. Studies have found that companies who have a higher percentage rate of keeping their customers are more profitable than those with a lesser percentage rate. Identification of Best Practices Per Evans & Lindsey (2009) in Managing Quality, “To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement” (pg. 190). Likewise...
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...BSOP588 Managing Quality Introduction Customer satisfaction is vital to any business, big or small. It is one of the distinct gauges of customer loyalty. No company exists without customers and it is very important to keep customers satisfied to have a chance to gain their loyalty. There are several ways a business can keep their customers loyal to their company and measuring and analyzing customer satisfaction can help them accomplish that but also gain knowledge on how to acquire more loyal customers. Customer loyalty is important because it drives repeat business, even if there is a lower price on offer from competitor. Loyal customers come back more often to take up cross sell opportunities and are more likely to try new products from their preferred supplier. Loyal customers are more likely to recommend a business’s services. Profit tends to increase over the life of the retained customer. It can be twenty times more expensive to acquire new customers than retaining existing customers. To accomplish this, successful businesses uses customer satisfaction data to be able to compare internal quality monitoring programs to ensure internal measures match out p actual customer sentiment. It can be benchmarked against other similar companies to determine the level of business competitiveness. It can also be used to set performance targets to outsource suppliers. Help identify areas for improvement. In all these measurements there are negative feedbacks that create a customer...
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...Measuring Customer Satisfaction Week 3: Paper Submitted by: Rich De Guzman rich.deguzman32@gmail.com BSOP 588: Managing Quality Instructor: Richard Sheng September 22, 2013 Introduction Being able to provide the best customer satisfaction should be the basis for a company and their vision to succeed. Good customer satisfaction can result in confidence in the company’s products and services however; great customer satisfaction can result in more and new sales or volume. Many companies use different metrics and methods to measure customer satisfaction. This paper will explore a few measures that I have researched and how it correlates to my company or company I used to work for in addition to some recommendations. Identification of best practices One of the most commonly used methods to measure customer satisfaction is by conducting a survey. According to TechRupublic, a survey “allows you to quantify the subjective perceptions of the clients by asking them to convert their perceptions into a numerical rating. The ratings then help the project team better understand how they performed” (TechRadar, 2007). I agree in that surveys do a good job of gathering information so that companies can gain knowledge on how to act and improve their overall customer satisfaction. There are many survey methods out there such as internal and external surveys. This can be deployed in a wide range such as a multiple choice or short answer structure. Many I have seen are surveys...
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...Best Practices in Customer Satisfaction Best Practices in Customer Satisfaction With quality management philosophies that are considered customer-centric such as Kaizen and the Deming Total Quality Management (TQM), quality cannot be reached without the “voice of the customer” (VOC) being heard. Satisfying internal and external customers is the root of quality. Companies that continuously strive for satisfaction with their clients use tools such as the Kano model of customer satisfaction or get ISO 9000 certified (Evans & Lindsay, 2010). Any industry that has been around for a while develops a set of “best practices,” processes that have proven themselves over time. This essay looks at some of methods used by companies to attain satisfaction, reasons for doing so, and how Maggiano’s restaurants incorporates them into their business. Customer and stakeholder satisfaction is the first of the three principles behind Deming’s’ TQM philosophy. Customer engagement and knowledge acquisition is one of the six major areas that most companies focus on when trying to implement quality with TQM. The first principle in ISO 9000 quality management is customer focus. The Baldridge concept of performance excellence states a need for processes to determine a customer’s needs as the first point to. With so many different quality practices putting customer satisfaction as a priority, it is obvious to see the importance of determining what the best methods are. Acquiring this knowledge...
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...Measurement of Customer Satisfaction Level Of consumer Product Assignment On: Measurement of Customer Satisfaction Level Of consumer Product Pre Pared For: Salma Sultana Course Teacher of Marketing Pre Pared By: Group: Marketing 2ed Year Batch: 10th Name: Saydur Rahman Sourav ID: 301138 Submission Date: 3.04.2013 Siddheswari University College Date: 3 February, 2013. The Course Teacher Salma Sultana Subject: Application for submission of assignment on Tram Paper in Marketing Dear Sir I beg to state that, I am a student of 2ed year in group-Marketing in Siddheswari University College. I am submission of an assignment on Tram Paper. The assignment topic is Measurement of Customer Satisfaction Level Of consumer Product. So therefore pray and hope that you have received my assignment & any inquire please let us known. Sincerely Your obediently students 2ed Year Group-B ----------------------------- Saydur Rahman Sourav ABSTRACT Service quality and customer satisfaction are very important concepts that companies must understand if they want to remain competitive and grow. In today’s competitive environment delivering high quality service is the key for a sustainable competitive advantage. Customer satisfaction does have a positive effect on an organization’s profitability. Satisfied customers form the foundation of any successful...
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...will provide helpful feedback and suggestions CASE STUDY Measuring & Managing Customer Satisfaction Synopsis This case presents an overview of the customer-focused strategy that has catapulted Enterprise Rent-A-Car into position as the largest rent-a-car company in the industry. As of 2005, when the case is set, Enterprise had $8.2 billion in revenue, approximately 818,000 vehicles, more than 6,500 locations, and more than 61,000 full-time and part-time employees. From 1980 through 2005, the company’s revenues grew at a compound annual rate of 20.5 percent. Now well into their 5th decade of doing business, Enterprise was founded in 1957 by Jack Taylor, who began leasing cars while working with a car dealer in St. Louis, Missouri. When his customers lost the use of their cars due to accidents or the need for repairs, Jack saw the opportunity to rent them replacement vehicles. This led to the creation of Enterprise Rent-A-Car in 1962, a company which for much of its history focused exclusively on the "home-city" rental replacement market – local branches near our customers’ homes and businesses rather than at the airport. From the beginning, Enterprise has based its growth strategy on a simple philosophy. Jack Taylor believed that by taking care of customers and employees first, profits would take care of themselves. Taylor focused on doing "whatever it took" to satisfy customers. He hired primarily university graduates and promoted them rapidly, putting them...
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...- Offer peace of mind to customers by providing most efficient and reliable moving and storage services available. We strive to exceed customer’s expectations by building relationships between you and our team to consistently meet your needs. By utilizing the highest standards of design, development and management, we will provide facilities that consistently deliver satisfaction, value and peace of mind for our customers. Company Description: Establish a self-storage business in the US and India that offers portable moving solutions, packing services and off-site storage solutions for residential and commercial customers. Move N Store Inc. offers long and short term storage in a warehouse type of facility with climate controlled and non –climate controlled floors. Some of the key features at each facility are: * On-site managers who reside at the facility and operate from the office from 9AM – 5PM. * Automated / Controlled gate access to the facility so the facility is accessible 24/7. * Loading bay with large garage doors accessing the loading dock, so that vehicles can be parked directly outside the elevator lobby for ease of loading and unloading. * Surveillance cameras on each floor in several areas for customer safety. * Individual door alarm for each unit. * Well lit aisles and lobby areas. * Completely fenced facility. * Boat, RV or Car parking in some facilities based on geographical location and customer. A good marketing plan...
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...competitive market place, the importance of customer satisfaction, will determine the outcome of an organizations success and there place in a competitive market. This has been an industry focus because of managerial strength and company profitability. Customer satisfaction will have a positive effect on the organization because a satisfied customer establishes the foundation of an organization. Customer satisfaction is the outcome felt by those that have experienced an organizations performance that have fulfilled their expectations. Customer satisfaction is one of the strongest indicators of customer loyalty because it drives repeat business, even if there is a lower price on offer from a competitor, loyal customers come back more often to take up cross sell opportunities and are more likely to try new products from their preferred supplier, loyal customer are more likely to recommend a business services and customer profit tends to increase over the life of the retained customer (Lean Consulting). Dissatisfied customers are more likely to tell another twenty people about their negative experience with your product or service rather than their positive experience. This type of feedback establishes the importance of customer satisfaction. Some best practices are using Transactional Customer Satisfaction Index for immediate feedback, an annual Relationship Customer Satisfaction Index to learn about specific attributes of satisfaction and intent for repeat business, and a competitive...
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