Customer Satisfaction Midterm

Essay by tamayouUniversity, Master's August 2006

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How do we measure customer satisfaction? One way is by conducting customer satisfaction surveys. Surveys are suited to measure service quality. That is, "the difference between customers' expectations of service and their perceptions of actual service performance" (Valerie A. Zeithaml, pg.xi). Thus, surveys can help us understand what customers expect and how they perceive our services. Surveys can be done through various media: mail, telephone and email. Besides, one of these surveys is the loyalty acid test. According to "Satmetrix Systems, the loyalty acid test can help us design programs to better serve both employees and customers"

(www.bain.com/loyaltyrules/acid_test). Some of these programs include support services and policies that encourage employees to deliver better service to customers.

Some of the questions that are typically asked in a customer satisfaction surveys are the following. The first one is about how willing are customers to recommend our business to others. Another question has to do with customer's overall satisfaction and their likelihood to repurchase again.

In fact, any information that we can get about our customers will help us shape our business.

Other ways to gather feedback from customers besides surveys include focus groups, order forms, or by personally talking to the customer. But, before we can get any information from customers it is important that we get their permission and keep their information private. In fact, the more information we collect about customers, the greater impact our marketing efforts can make and the stronger understanding we'll have about our customers. Thus, we will be able to serve our customers better resulting in superior customer service and profitability.

How does satisfaction differ from loyalty?

Satisfied customers will stay until there is a better alternative offered to them. In fact, according to Jill Griffin, "reportedly satisfied customers went to a competitor once they became...