Measuring Customer Satisfaction Paper
Prepared by John Green
Marcus Williams MBA, PMP
Customer satisfaction is defined as a customer’s overall evaluation of the performance of an offering to date. This overall satisfaction has a strong positive effect on customer loyalty intentions across the wide range of product and service categories (Gustafsson, 2005).
There are many ways for measuring customer satisfaction such as customer feedback and evaluations, customer satisfaction, market analysis, service analysis, surveys, complaints analysis, focus and user groups. Nowadays, with modern computer software, it is more accurate to take data, analyze and distribute results of surveys. Survey is one of the most popular method of measuring ...view middle of the document...
This results in cost savings as well. Improvement in technology has created the use of Internet surveys as well. There are several organizations that send out surveys to customers by email on a regular basis. CDW has been able to take responses from these surveys, send the results to their sales staff and generate 230 million in additional revenue (Baldridge.com, 2007).
We live in a competitive business world. Consumers have more options to chose from and they pay strict attention to the quality, cost and availability of the product they desire. Organizations, in order to be profitable and competitive, need to create and maintain a wholesome customer satisfaction. Organizations need to know what expectations their customers have of their services and products, the effectiveness of their marketing strategies, the strength of their company's image, as well as the key elements that most heavily influence customer retention for their business (Importance of Customer Feedback, 2011).
A fresh consumer study reveals a big drop in the beleaguered video Netflix's customer satisfaction scores, mostly due to poor handling of the separation of its streaming and DVD plans — and the price hike that went with it.
ForeSee, an analytics firm specializing in the consumer experience, released its annual Holiday E-Retail Satisfaction Index, which shows that even as Amazon has risen to top place, Netflix has slid the most. As the two go head to head in the video streaming competition, the company predicts the two will continue to go in opposite directions, with "a gulf that may be too wide for Netflix to overcome anytime soon."
1) Gustafsson, 2005
2) Oakland, Beardmore, 1995
3) Baldridge.com, 2007
4) Importance of Customer Feedback, 2011