MONITORING SATISFACTION :Many companies are systematically measuring how well they treat customers, identifying the factors shaping satisfaction.
And changing operations and marketing as a result.
Wise firms measure customer satisfaction regularly because it is one key to customer retention.
A highly satisfied customer generally stays loyal longer, buys more as the company introduces new and upgraded products.
Talks favorably to others about the company and its products pay attention to competing brands and is less sensitive to price.
Offers product or service ideas to the company, and costs less to serve than new customers because transactions can become routine.
The link between customer satisfaction and customer loyalty is not proportional, however, Suppose customer satisfaction is rated on a scale from 1 to 5.
At a very low level of satisfaction level 1.
Customers are likely to abandon the company and even bad-mouth it.
At level 2 to 4, customers are fairly satisfied but still find it easy to switch when a better offer comes along.
As level 5, the customer is very likely to repurchase and even spread good word of mouth about the company.
High satisfaction or delight creates an emotional bond with the brand or company, not just a rational preference.
Xerox products over the following 18 months than even its very satisfied customers.
The company needs to recognize.
However that customers define good performance differently, Good delivery could mean early delivery, on time delivery, or order completeness, and two customers can report being highly satisfied for different reasons.
One may be easily satisfied most of the time, and the other might be hard to please but was pleased on this occasion.
It is also important to know how satisfied customers are with competitors in order to assess share of wallet or how much of the customer spending brand enjoys.
The more highly the customer ranks the company brand in terms of satisfaction and loyalty,The more the customer is likely to spend on the brand.