Important Essancement: The Importance Of Customer Satisfaction

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satisfaction could not be defined only standard or quality of product it is about relationships between the customer and product or service and the provider of a product or service.
It is a highly personal assessment and is is greatly influenced by individual expectations. Some definitions are based on the observation that customer satisfaction or dissatisfaction results from either the confirmation or disconfirmation of individual expectations regarding a service or product. In order to avoid difficulties stemming from the kaleidoscope of customer expectations and differences, some experts urge companies to concentrate on a goal that are more closely linked to customer equity. Rather than asking whether customers are satisfied, they encourage …show more content…

Satisfaction is not inherent in the individual or the product but is a socially constructed response to the relationship between the product, a customer, and the product provider /maker. To the extent that a maker/ provider can influence the various dimensions of the relationship, the provider can influence customer satisfaction. [14] Reed, John H., Hall, Nicholas P., Methods For Measuring Customer Satisfaction,
Energy Evaluation Conference, Chicago,1997.
Importance of Customer Satisfaction:
Customer satisfaction is a marketing term that measures how services or products supplied by a company surpass or meet a customer’s expectation.so Customer satisfaction is important because it provides marketers and business owners with a metric that they can use to improve and manage their businesses.
The top six reasons that shows why customer satisfaction is so important:
• It is a leading indicator of consumer repurchase intentions and loyalty
• It is a point of …show more content…

Do that for about six months, than measure customer satisfaction again. See whether new initiatives have had a positive or negative impact on satisfaction.
4. It increases customer lifetime value
A study by InfoQuest shows that a ‘totally satisfied customer’ contributes 2.6 times more revenue than a ‘somewhat satisfied customer’. Furthermore, a ‘totally satisfied customer’ contributes 14 times more revenue than a ‘somewhat dissatisfied customer’.
Satisfaction plays a significant role in how much revenue a customer generates for the business.
Successful businesses understand the importance of customer lifetime value (CLV). They know that if they increase CLV, they increase the returns on their marketing dollar.
For example, you have a cost per acquisition of $500 dollars and CLV of $750. That is 50% ROI from the marketing efforts. Now imagine if CLV was $1,000. That is 100% ROI!
Customer lifetime value is a beneficiary of high customer satisfaction and good customer retention.
5. It reduces negative word of mouth
McKinsey shows that an unhappy customer tells between 9-15 people about their experience. In fact 13% of unhappy customers tell over 20 people about their experience. That is a lot of negative word of

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