Customer
satisfaction is a measure of how products and services supplied by a company to
meet or surpass customer expectation. It is essential to any business. If
customers are satisfied, they are more likely to purchase from one company more
often. As a result, the company should know the most effective way to meet customers’
needs and further enhance customer service to ensure strong customer
satisfaction.
Within
organizations, customer satisfaction ratings can have a great impact.
Furthermore, these ratings can serve as warning of threat or opportunity that
can affect sales and profitability. When a brand has loyal customers, it gains trust
and encourages POM or positive word of mouth marketing. This approach is effective
and no cost to the company because customers are the ones making efforts on how
others know about a product or services through sharing by using different
means of communication. For example, customer likes the product; as a result,
he shares his experience over the internet through the use of social networking
sites and even uploaded a picture of it. And so, company saves its budget in
Advertising because of its loyal customers who are strongly satisfied by their
products.
Hence,
it is essential for organizations to know the different types of customer satisfaction.
First, when merchandise meets customers’ expectation, it is called Positive
Confirmation. In some cases, critics used the term delighted meaning the
company’s products or services exceed customers’ expectation. On the other
hand, Negative Confirmation is the term being used when the company does not
meet the standard of the customers.
It
is necessary for the company to know why there will come a point that customers
will start to dislike a product or services. One example is poor product
quality. Inferiority of products have negative impact to customer that can also
have an effect on the image of the company. Another example is poor customer
service. It happens when employees are not trained to be customer-orientated
and not focusing on meeting other people’s needs.
Effects
of negative confirmation can be fatal to company’s profitability and image. Studies
show that a satisfied customer will tell two to three people about his experience
with your company while unsatisfied consumer will share their lament with eight
to ten people (Gladin, 2012). As a result, negative publicity can occur and
enormous decline on sales could happen. Moreover, increase of usage of social
media where information can easily be gathered and number customer complaints
are ubiquitously. The accessibility of information is so rampant that negative
remarks about a product or services may be passed on from one person to
another.
Hence,
commitment to the customer is displayed by responsiveness and resolution of
customer concerns, problems and complaints. Instead of telling customers what
the company will do in response to a complaint, a business that is truly
committed to customers will ask them how they would like the problem to be handled
or resolved. Oftentimes, this approach leads to lower costs, because many
customers ask for less than the company might be willing to do to solve a
problem. Solving complaints to the full satisfaction of customers is critical
in this age of the Internet and social media. Previously, unhappy customers
might tell a dozen other people; today, they might go online and voice
complaints that reach tens of thousands of people. Product or service failures
that are not resolved promptly and to the full satisfaction of the customer
affect future business, because they weaken customer-company bonds and lower
perceptions of service quality.
Finally,
companies looking to generate a satisfied and loyal group of customers need to
keep in mind the different drivers that affect customers’ attitudes. For each
factor, they should measure, benchmark and compare their performance with
different customer groups against past performance, the company’s overall goals
and the performance of major competitors. The classic approach is to ask
respondents to select an adjective that reflects their opinion, typically using
a five-point scale; a similar survey can be conducted with the customers of
competitors. By monitoring how well it is doing versus past performance,
competitors and other benchmarks, a company can develop insights and early
warnings that will enable managers to make timely adjustments to their customer
relationship strategies.
REFERENCES:
Anderson
R., (2013) How to Drive Customer Satisfaction, Retrieved from
http://sloanreview.mit.edu/article/how-to-drive-customer-satisfaction
Coon,
J. (2012) Playing the Advocate, Retrieved from
http://geniusbusiness.com/redding-california-marketing-2./
Paddison,
N., (2005) Seing Patients as Customers, Retrieved from
http://www.quirks.com/articles/a2005/20050604.aspx?searchID=622320818&sort=5&pg
Peppers
and Rogers Group, (2010) Sponsored Content: Capitalizing on Customer Feedback -
Creating Measurable Value from Voice-of-the-Customer (VOC) Programs, Retrieved
From http://www.quirks.com/articles/2010/20100399.aspx?searchID=622320818&sort=5&pg=

