... 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 dissatisfaction reports...
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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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...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)...
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...Best practices for measuring customer satisfaction? Is it upper level management, hired consultants, surveys, or reactions to industry swing? So many choices but what really is a best practice. Customer satisfaction programs, research, employee satisfaction, and personal experience all play a role in measuring customer satisfaction. Even when using those practices it takes effort and continuous improvement to stand a chance on improving customer engagement and satisfaction. Hopefully these next few paragraphs can add some insight on measuring results. The problem companies face, is exactly how to and do it well. Companies need to understand how to quantify, measure and track customer satisfaction. Without a clear and accurate sense of what needs to be measured and how to collect, analyze and use the data as a major strategic focus to achieve business success, no firm can be effective in satisfying customer to drive business. Plans must be constructed using customer satisfaction research results and design a strategy that target customers and/or processes that add to the bottom line. The last thing a company should do is not take action, there is collateral damage in asking (resources and time) customers about a service or product if it won't or can't be changed. What are some of the ways to measure customer satisfaction. One used quite frequently because of the associated low cost is using outdated and unreliable measures of customer satisfaction. The data is already...
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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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...Measuring Customer Satisfaction Paper Prepared by John Green BSOP 588 Marcus Williams MBA, PMP January 2013 Introduction Customer satisfaction is defined as a customer’s overall evaluation of the performance of an offering to date. This overall satisfaction has a strong positive effect on customer loyalty intentions across the wide range of product and service categories (Gustafsson, 2005). There are many ways for measuring customer satisfaction such as customer feedback and evaluations, customer satisfaction, market analysis, service analysis, surveys, complaints analysis, focus and user groups. Nowadays, with modern computer software, it is more accurate to take data, analyze and distribute results of surveys. Survey is one of the most popular method of measuring customer satisfaction. Some companies use independent marketing firms to design and implement surveys that are customized to their industry. These companies can use postal questionnaires and telephone poles to collect data (Oakland, Beardmore, 1995). They focus around ordering, delivery, installation and their criteria for excellent suppliers. Telephone surveys are similar in the questions asked but added some different elements concerning competitors. These surveys not only expressed what the organizations are doing well, but where unimportant tasks are being performed. This results in cost savings as well. Improvement in technology has created the use of Internet surveys as well. There are several...
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...Shequila Elmore BSOP 588 Measuring Customer Satisfaction Shequila Elmore BSOP 588 Measuring Customer Satisfaction Customer satisfaction is the extent to which a customer is happy/satisfied with the products/services being provided by the organization. It is one of the most important indicators of a successful organization. As. Theodore Levitt once said “The purpose of a business is to create and keep customers”. This means we have to measure the customer satisfaction which is also help the organization by providing insights into how to attract new customers. There are several methods for measuring satisfaction including surveys, focus groups, complaint analysis and user groups. The most used method is the customer survey method, which could be brief or lengthy feedback forms. Surveys can be provided in several ways such as the mail, email, or over the phone (Simpson). Surveying a customer after he/she searches a website with a pop up which guides them to another screen where they can rate the information they found, whether it was useful or not, or staying on the line after you finish with a representative to take a automated survey. This method is used to capture important data that it can use to determine the company’s strengths and weaknesses regarding levels of service (Mayhew). Field intelligence is another method for gathering customer information. Any employee who comes in direct contact with customers can obtain useful information simply by engaging in conversation...
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...Best Practices in Measuring Customer Satisfaction Lynette Diaz Devry University INTRODUCTION How do you know if your customers are satisfied? Are they more pleased with your company this year than they were last year? How does customer satisfaction of your customers compare that of your competitors? Does this affect your company’s profits? In order to answer these questions, you need hard data. You can do this by measuring and monitoring customer satisfaction on a regular basis. Customer satisfaction is linked to profitability. Keeping your customers happy will keep them loyal and if they are loyal they will buy more and refer your company to other customers. “Customer satisfaction is one of the strongest indicators of customer loyalty” (Lean Consulting Inc.) A study has shown the connection between a company’s profits and customer satisfaction. * “It’s six to seven times more expensive to gain a new customer than it is to retain an existing customer.” * “A 5% increase in customer retention can increase profits by 25% to 95%.” (Reichheld, 1993) There are many different practices to measuring customer satisfaction. Some of the best practices used are comment cards and formal surveys, focus groups, direct customer contact, field intelligence, studying complaints, and monitoring the internet. Depending on the industry, some work better than others. Customer cards and surveys work better in the retail industry. They can work well in finding out how each...
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...Practices for 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...
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...Best Practices for Measuring Customer Satisfaction Dana Atchley Keller Graduate School Introduction There are several means for measuring customer satisfaction including surveys, focus groups, complaints analysis and user groups. Research of top companies around the world seems to suggest that the customer survey method is used more often than any other. There can be problems with data collection and analysis from surveys but technology is improving the measurement of data (Oakland, Beardmore, 1995). We now have computer software to take data, analyze and distribute results. This may be more accurate in reporting the statistics reducing human error, but the survey has to be correctly designed to ensure that data is not tarnished (Fogli, 2006). Measurement Methods The most popular method of measuring customer satisfaction is the survey. Most companies will use independent marketing firms to design and implement surveys that are customized to their industry. These companies can use postal questionnaires and telephone poles to collect data. Usually these questionnaires consist of around fifty questions rating the service on the five point Likert scale (Oakland, Beardmore, 1995). They focus around ordering, delivery, installation and their criteria for excellent suppliers. Telephone surveys are similar in the questions asked but added some different elements concerning competitors. These surveys not only expressed what the organizations are doing well, but...
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...MEASURING CUSTOMER SATISFACTION KELLER GRADUATE SCHOOL OF MANAGEMENT BSOP – 588 – MANAGEING QUALITY BY: KACHENA BOYD When I think of the word customer, generally what comes to mind is a person or organization that buys goods or services from a store or a business. As it relates to quality management, an organizations image is very important to the customers. In any business, providing quality services delivers benefits to the business. The customers’ interaction with the organization and how this interaction is measured are very crucial. Now days’, just making a good product or service available is not enough. Customer satisfaction will be affected by how effectively, courteously, and promptly customers are served. On several occasions, I’ve witnessed customers building relationships with personnel in the organization who are knowledgeable, professional in appearance, and positive. These kinds of relationships promote loyalty. However, let’s keep in mind that even satisfied customers are likely to defect. Satisfaction without loyalty can lead to habituation and boredom. The customer is keen to experience something new and therefore changes to another business. To retain customers, organizations need to seek their input rather than waiting for and reacting to feedback provided after a problem has occurred. One good practice that I found interesting in customer satisfaction is the Kano Model. The Kano Model is a theory of product development and customer satisfaction...
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...Measuring Customer Satisfaction at American Express American Express is a world wide travel related service company. American Express works with both consumers and business with their financial planning as well as offers numerous amounts of credit card products and travel assistance. They have many products and services that are used throughout the world by consumers and businesses. As American Express moves towards the future, like most credit card companies, they want to be competitive and responsive to the needs of the consumer. American Express sends out customer service surveys to the card members that call in to the telephone service center. The surveys are sent out randomly with a coding on the bottom of the survey so that the results and comments are given back to the correct employee. The employees are aware that any card member that they speak to could receive a survey. With this said, each employee goes through extensive training on the telephone behaviors that must be demonstrated while speaking to card members. The employees also go through extensive training on the policies and procedures that each card product and service has. This training is to ensure that each card member is handled with the most utmost professional behavior and their issues are handled correctly. Once the surveys are returned to the company, they are returned to the Customer Satisfaction Action Team. This team reviews the surveys, separates them by employee and then by the...
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...BEST PRACTICES IN MEASURING CUSTOMER SATISFACTION Case Study: Comcast Corporation GM588: Managing Quality INTRODUCTION In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. It is critical to give customers the opportunity to provide feedback about their overall satisfaction level and specific likes and dislikes. It is equally important to consistently measure and monitor that input. Without an effective customer satisfaction research program in place, a company will lose business, missing opportunities, and putting itself at a competitive disadvantage. “Customer wants and needs drive competitive advantage, and statistics show that growth in market share is strongly correlated with customer satisfaction.”(Evans, 2010) An outstanding customer experience creates promoters, and promoters are more valuable to a company than other customers. 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%” (Bain, 2000). The same study found that it costs six to seven times more to gain a new customer than to keep an existing one. Moreover, one bad...
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...This is a best practice in the measurement of customer satisfaction courtesy of CDW, one of America’s largest private companies with technology sales of more than eight billion dollars in its most recent fiscal year. CDW had been using Net Promoter to measure customer satisfaction and brand health. You get a Net Promoter Score by asking one question of your customers—How likely is it that you would recommend your company to a friend or colleague?—and then grouping the responses by promoters (those who answer the question with a 9 or 10), passives (7-8), and detractors (0-6). You subtract the percentage of detractors from the percentage of promoters to get your Net Promoter score. This has been a leading edge measure for many companies because it helps them identify opportunities to improve customer satisfaction. CDW decided that Net Promoter was too one-dimensional so, with the help of the person who developed Net Promoter, it went to a three-question approach that, according to Calvin Vass, CDW’s senior manager of research, looks at “different dimensions of the relationship; what the customer plans to purchase with us, if they are committed, and what they would do if we went away.” Vass is quoted in “Is Net Promoter Really the Ultimate Question?” by Drew Neisser (Fast Company, October 20, 2010). CDW segments its market into two groups, Active Customers and Less Active Customers. It surveys the first group quarterly, receiving more than 100,000 surveys per year. It surveys...
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...3 PAPER MEASURING CUSTOMER SATISFACTION TO purchase this tutorial visit following link: http://wiseamerican.us/product/bsop-588-week-3-paper-measuring-customer-satisfaction-2/ Contact us at: SUPPORT@WISEAMERICAN.US BSOP 588 WEEK 3 PAPER MEASURING CUSTOMER SATISFACTION Research the text, library, and web sources for the best practices in measuring customer satisfaction. In a 2-3 page paper ( excluding cover and reference page), explain your findings and link them to your current organizations practices for measuring customer satisfaction. Identify whether your company direction meets or exceeds what the best practices advocate. Make sure you provide at least three supporting sources. BSOP 588 WEEK 3 PAPER MEASURING CUSTOMER SATISFACTION Research the text, library, and web sources for the best practices in measuring customer satisfaction. In a 2-3 page paper ( excluding cover and reference page), explain your findings and link them to your current organizations practices for measuring customer satisfaction. Identify whether your company direction meets or exceeds what the best practices advocate. Make sure you provide at least three supporting sources. BSOP 588 WEEK 3 PAPER MEASURING CUSTOMER SATISFACTION Research the text, library, and web sources for the best practices in measuring customer satisfaction. In a 2-3 page paper ( excluding cover and reference page), explain your findings and link them to your current organizations practices for measuring customer satisfaction...
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