Answer the questions . no references needed Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    331

Customer satisfaction refers to a judgment after a consumption of a product or service by a customer, that is, the extent to which a product or service meets customers expectations. Changes in customer satisfaction scores always lead to changes in the bottom line.

A satisfied customer is a main pillar of any successful organization and it is very important for a customer to be satisfied. It is less costly to retain a happy customer than it does to get a new customer. Organizations that have managed to retain satisfied customers have been able to consistently increase profits from their loyal client base. A satisfied customer will over time become a loyal customer if the organization finds out what the customer wants, produces it and sells it to him. A loyal customer always has an attitude that is an important determinant of future customer behaviors for example the repurchase behavior. Loyal customers may only constitute about 20 percent of all the customers in an organization but manage to contribute to 80 percent of the organizations revenue according to the 80/20 rule.

Customer satisfaction survey that help to maximize customer retention, improve the loyalty of customer and help organization make improvement on products or services are very useful to managers, this is because managers will be able to come up with feedbacks after analyzing the survey. Impact of customer satisfaction surveys is negated if customer feedback is not acted upon, managers must view complaints and negative feedback as a learning opportunity or a gift from a customer and never to negatively react to them. Customer satisfaction survey properly fits into the customer relationship management, CRM entails organization interaction with its client at all levels and it is a business strategy that the organization uses to understand the customer, retain existing customers, attract potential customers and get their contacts, increase revenue and lower customer management cost. All this can be achieved if customer satisfaction survey is done well and feedback acted upon promptly.