What is customer satisfaction?

Team TeachWiki

Customer retention is a key business task, the solution of which directly affects the preservation and increase of the company's income. Therefore, an increasing number of organizations include in the marketing plan regular monitoring of the degree of loyalty and satisfaction of the audience. As you know, a customer satisfied with the quality of a product and service is more likely to make a repeat purchase, and a disappointed one will turn to a competitor. To date, there are several methods that allow you to effectively assess customer satisfaction with the process of interaction with the company and develop, if necessary, measures to correct the situation.

Assessing the relationship of the audience to the organization

Customer satisfaction assessment is an effective tool for determining, improving and predicting the market prospects of an enterprise. Such an analysis provides a basis for obtaining high economic results and increasing the profitability of the business in the future. It allows:

  • find out the needs of the target audience and rank them in order of importance and relevance;
  • determine the attitude of the audience to the products and the level of compliance of the company's goods and services with the needs and expectations of consumers;
  • to identify areas of activity in which the improvement of indicators will significantly affect the level of satisfaction;
  • to identify areas in which the company's activities were conducted incorrectly, inconsistent with the priorities of customers;
  • formulate goals for improving goods and services;
  • to keep the buyer and thereby increase the profitability of the business.

Studies show that in a year a business can lose from 10% to 30% of customers due to dissatisfaction. This indicator is all the more sad because each dissatisfied consumer will tell about the unpleasant experience of interacting with the company to acquaintances, who, in turn, will never become its customers due to negative reviews. Meanwhile, a satisfied customer guarantees the business savings in customer acquisition through positive referrals and word-of-mouth and increased revenue because they are willing to pay more for the quality they want.

Foreign companies have long and successfully practiced monitoring the level of customer satisfaction, focusing on specific indicators. In b2b, the benchmark is 95%: a percentage below that bar is cause for concern. For companies operating in the field of b2c, the indicator should exceed 80%.

One of the effective ways to measure customer satisfaction was proposed by English marketers and is known as the CSM (Customer Satisfaction Measurement) technique. It involves research in several stages:

  • pilot study using qualitative methods (focus group for b2c companies, in-depth interviews for b2b companies);
  • preparation of a quantitative study (questionnaires for self-completion, individual interviews);
  • conducting a questionnaire survey;
  • analysis of the results and leaving a report.

Other ways to measure customer satisfaction include the CSI (Customer Satisfaction Index) methodology. It is used mainly at the national level and makes it possible to understand consumer sentiment for goods and services both in general and in individual industries. The satisfaction index model is aimed at studying 6 interdependent components:

  • satisfaction factors (customer expectations, perceived quality, perceived value);
  • consequences (loyalty, complaints);
  • perception of the product (image).

The process of customer satisfaction management is based on the observance of a number of fundamental points. They allow you to obtain reliable information about the results of ongoing research in any conditions and avoid possible inaccuracies when working with the final data. The main principles are:

  1. scientific validity (compliance with best practices, socio-economic laws);
  2. modeling and continuity of management (cyclicality and constancy of management, comparison of indicators in dynamics, identification of threats and trends);
  3. consumer orientation (meeting the needs of the target audience);
  4. truthfulness, completeness and reliability of the data (the absence of "embellishment" of the results, familiarization of the personnel and clients of the company with them);
  5. uniformity and relevance (comparative assessment of objects according to the same indicators, compliance with the task being solved);
  6. complexity (assessment of all external and internal factors);
  7. improvement and dialectics (continuous improvement of the model, consideration of the studied indicators in development).

Customer satisfaction monitoring is the basis for determining further steps to improve the company's interaction with the consumer. Taking into account the information received as a result of it, the heads of the organization can:

  • formulate specific goals to improve customer satisfaction (for example, using SMART technology);
  • organize / establish feedback work with the distribution of responsibility for customer service among company employees at all levels;
  • improve communication with the target audience (publications in the media, direct mailings, etc.) and communicate to customers the results of “correcting mistakes”;
  • to make changes in the process of training and motivation of employees who directly and indirectly interact with customers.

One of the main conditions for the success of customer satisfaction monitoring is the systematic nature of research. The information obtained as a result allows you to confirm or refute the effectiveness of ongoing marketing programs to work with clients. The frequency of research is determined primarily by the characteristics of the market and the specifics of the business, and most often ranges from 3 to 6 months.

Companies' increased focus on measuring customer satisfaction is becoming the rule rather than the exception. It is explained by the fact that it is a satisfied consumer that is able to bring tangible benefits to the organization: strengthening market positions, increasing competitiveness and stable income in the future.

Customer Satisfaction

Customer satisfaction is the level of customer satisfaction with products, services or customer care. High levels of satisfaction lead to referrals, increased sales, and reduced costs. Companies can improve customer satisfaction with quality products, services, and support, while also reducing prices and creating a pleasant in-store experience.

What is customer satisfaction?

Customer satisfaction is the level or degree of satisfaction with products, services or customer care. A high level of customer satisfaction is a situation in which customers are satisfied with the company. The level of customer satisfaction indicates whether customer expectations were met or not.

Increasing the company's level of customer satisfaction helps to reduce costs and increase sales. Satisfied customers often recommend the company to their friends, family members, and colleagues who are potential new customers for the company. A company can improve satisfaction by providing quality products, services, and customer support, by lowering prices, or by creating a pleasant in-store environment. But there are many other ways as well.

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