OBJECTIVES OF THIS ARTICLE
In this chapter, we want to look at:
· The meaning of customer satisfaction.
· Relationship and differences between customer satisfaction and customer loyalty.
· Relationship between customer satisfaction and brand value.
· How to measure customer satisfaction
· Importance of customer satisfaction.
Customer satisfaction results from a process 0! internal evaluation that actively compares expectations before purchase with a perceived performance during and at the conclusion of the purchase experience. We h’: ye said earlier that, before customers purchase your product(s), they have some expectations in mind. If these needs are met, then customers will be satisfied.
In analyzing customer satisfaction and expectation of prospects or customers before they purchased or after they purchased your product, the smaller the discrepancy between the customers’ expectation and the perception of the purchase experience, the higher the resulting satisfaction level.
Relationship Between Customer Satisfaction and Customer Loyalty
There is a very wide difference between customer satisfaction and customer loyalty. Satisfaction in customer relations measures the attitudes of the customers towards the product. What is satisfactory to one person might not be satisfactory to others. That why we say that it is based on attitude.
A successful customer strategy will try to link these beliefs, inherent in performance, and actions and behaviours associated with likely future purchase and recommendation. To formulate an effective loyalty program. what we are saying here is that a customer-centric enterprise can capitalize on the satisfaction that customers derive from their product to build a reliable loyalty program.
Correlation between Customer Satisfaction and Brand Value
There is a very wide link between customer satisfaction and organizational success. Customer satisfaction results from the creation of value for the customer. If customers’ needs are met and the organization is able to add value to there customers, they will be able to remain loyal to the organisation. This will also to employees’ satisfaction and loyalty.
It has much to do with the kind of value the organisation
adds to its customers. These values can be functional or emotional in nature. An organization can add functional values to their customer’s life through product improvements,
added features, access, and convenience among others.
An organisation can also add emotion value through the provision of superior customer service. The emotion value you should know is more paramount than functional values as it leaves a lasting impression in the mind of consumers. It will enable them to recommend the product to others, and it will give the firm a higher share of their business. Functional value customer is more or less not likely to remain a customer for life. They will likely leave if any other organisation is able to provide exactly what they want, maybe at a cheaper rate.
It can, therefore, be said to be a “composite mix” of different value components in the total value proposition. This is one of the reasons why customer satisfaction surveys can be misleading or be misinterpreted.
Measuring of Customer Satisfaction
Here, we want to look at the reasons why we need to have a well-planned loyalty program and customer satisfaction measurement. You should know that there must be a way of measuring customer loyalty’. You need a survey for example to capture customer satisfaction but this must be supported with proper analysis so that we can interpret the results.
One of the methods of analysis that can be used in analyzing satisfaction is a regression of attribute ratings, framed in order to reveal which characteristics have test impact on overall customer satisfaction.
We can also talk of multiple classification analysis which reveals the benefit of risk specific associated with the specific level of customer satisfaction. In order to achieve this, a customer
A strategy should also consider means and methods to improve response rates and generate more meaningful feedback.
Importance of Customer Satisfaction
Customer satisfaction represents an important feedback mechanism for brands to determine how they have been received and where weaknesses exist among competitors that might be used to hire customers. Customer satisfaction will allow you how your product is faring in the market and what you need to do in order to outsmart your competitors.
As an organisation, the main reason why you should be building a customer satisfaction mechanism should be based on how you can improve your customer’s experience. You should know that you have to devise several ways of improving tour customers’ experience but you should beware of your actions because a single mistake can destroy what you have built for many years.
So far, we have talked about customer satisfaction. We said customer satisfaction is based on two components which are functional or emotional in nature. We also discussed that it is good for you if your customers have an emotional attachment towards your products. Those that have functional attachment will always join your competitors’ Life Cycle if they can meet their needs or performs better than you.
Above all, we said you should be mindful of your actions while carrying out any Loyalty program as a single mistake can spell doom for the entire enterprise.
1. In your own view, what are the benefits of having a loyal customer base?
2. Discuss the components of customer loyalty in relation to a laundry firm.
3. You hate lust started a boutique. to you: what use the strategies that you can to create `customer loyalty?
4. What is a Brand Promise? How can an organisation create one?