Customer satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance or outcome in relation to his or her expectations.
Customer satisfaction is measured always on two planks:
Overall satisfaction. For e.g., taking everything into consideration
Specific satisfaction parameters. For e.g., the specific parameters could be:
- sales and distribution
- Availability of the Product, etc.
Customer satisfaction is the result of the customer’s comparison of the performance of the firm with respect to the competitors, this comparison could be on the basis of
- Specific standards or parameters ( as mentioned above )
- Image of the firm or
- Performance promised by the firm
Based on all of this , the customer can be satisfied or dissatisfied or delighted.A delighted customer is a CONVINCED Customer and evokes a positive , active behavior with respect to recommendations or rebuys, the general reaction is WOW !! GREAT!! SUPERB!!A Satisfied customer evokes a positive and many a times a neutral behavior with respect to recommendations or rebuys. the general reaction is YEAH It is okay.
A dissatisfied customer is a DISAPPOINTED customer and evokes a always a NEGATIVE , behavior with respect to recommendations or rebuys. He is quite ACTIVE in spreading this negative behavior .
It is very important for companies to understand the satisfaction level of its customer . this is because the consequence of dissatisfied one can be disastrous to the organisation , thus , the net effect of s dissatisfied customer could be :
- 91% move over to the competitor.
- 10% of the dissatisfied customer shares his negative experience with other customer
- 15% of the dissatisfied customer complain, while rest do not bother to complain. they just leave .
- the cost of winning new customer is at least 5 times more than the cost of retaining an existing customer .
only a small portion of the customer positive feeling are generated from the product. several factors influence the positive feeling ( FEEL GOOD FACTORS ). Many of these factors are INTANGIBLES for e.g., service factor , store experience , relationships, etc. companies need to MANAGE these FEEL GOOD FACTORS or relationships with each and every customer and in the bargain make money. those companies that are successful will find increased revenue at lower cost of marketing and sales, decreased cost arising out of lost customer and ineffective sales and marketing . The methodology that is normally used to increase the satisfaction level are termed as CUSTOMER RELATIONSHIP MANAGEMENT .