Focusing in Customer Service

Essay by akasha24 November 2006

download word file, 6 pages 3.5


Firms need to identify customers' needs, design the production and service strategies to meet their needs, and measure the results to improve such strategies.

The Importance of Customer Service Satisfaction and Loyalty.

Customer wants and needs drive competitive advantage, and statistics show that growth in market share is strongly connected with customer satisfaction.

Customer satisfaction is also an important factor for the bottom line. Achieving strong profitability and market share requires loyal customers, who stay with the company and make positive recommendations to others. Loyal customers will only make business with a specific organization and will go out of their way or pay a fee to stay with the company.

In order to achieve customer satisfaction, products or service must meet or exceed customer expectations.

Value is quality related to price. Nowadays, consumers not only make purchases based on price. They compare the consumer benefit package (services and products offered) with the price and competitive offerings.

This package influences the perception of quality and includes the actual product, its quality dimensions and presale support.

It is important to understand exactly what customers want and their view of value in order to have competitive success. In addition, satisfaction and loyalty are influenced by service quality, integrity, and the relationships companies establish with customers.

The American Customer Satisfaction Index

1994 - The University of Michigan and the American Society for Quality (ASQ) released the first American Customer Satisfaction Index (ASCI), which is an economic indicator that measures customer satisfaction at the national level. One of its goals is to increase the public's views and understanding of quality. This will help to interpret price and productivity measures and promote customer-driven quality.

The ASCI is based on customer evaluations on the quality of goods and services purchased in the USA and...