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Measuring Customer Satisfaction

In: Computers and Technology

Submitted By ninathatgirl
Words 945
Pages 4
BSOP588
Managing Quality

Introduction

Customer satisfaction is vital to any business, big or small. It is one of the distinct gauges of customer loyalty. No company exists without customers and it is very important to keep customers satisfied to have a chance to gain their loyalty. There are several ways a business can keep their customers loyal to their company and measuring and analyzing customer satisfaction can help them accomplish that but also gain knowledge on how to acquire more loyal customers. Customer loyalty is important because it drives repeat business, even if there is a lower price on offer from competitor. Loyal customers come back more often to take up cross sell opportunities and are more likely to try new products from their preferred supplier. Loyal customers are more likely to recommend a business’s services. Profit tends to increase over the life of the retained customer. It can be twenty times more expensive to acquire new customers than retaining existing customers. To accomplish this, successful businesses uses customer satisfaction data to be able to compare internal quality monitoring programs to ensure internal measures match out p actual customer sentiment. It can be benchmarked against other similar companies to determine the level of business competitiveness. It can also be used to set performance targets to outsource suppliers. Help identify areas for improvement. In all these measurements there are negative feedbacks that create a customer dissatisfaction reports which can be as useful to businesses. It can be used to initiatives used to prevent customer attrition and measuring dissatisfaction through complaints masks the true performance as there are people who do not spend their time going to a business to complain.
Identification of best practices

Surveys are suggested to be used the most by companies as a popular method of measuring customer satisfaction. Surveying your customers regularly and in a variety of ways is a critical part of running a successful business, regardless of your industry, product or service. Surveys measure satisfaction -- or dissatisfaction -- with your offerings, determine critical needs and offer an opportunity to effectively communicate and build truly personal relationships with your customers.

Focus groups is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members.

Complaints Analysis
Customers are essential in business and keeping customers satisfied is a goal of every company. But customer complaints are not uncommon, and they range from minor to major problems. It is important to take complaints seriously to retain customers. Companies will hear about complaints one of two ways. The first is through the customer's voice. The voice is written or verbal and states the customer's problem. The second way is through exit, which is when the customer leaves, often without warning, due to a negative experience with a company. To analyze a complaint thoroughly, you must look at a variety of factors. Start by examining whom the complaint came from and if he complains often. Also, look at how large the complaint is and if you can change actions to assure the issue does not occur again. When dealing with complaints, consider the company's service, quality, means of communication and response time. Look at the cost, billing issues and if problems are followed up. New practices may avoid any future complaints.

User group is a type of club focused on the use of a particular technology, usually (but not always) computer-related. Users' groups today continue to provide "real life" opportunities for learning from the shared experience of the members and may provide other functions such as a newsletter, group purchasing opportunities, tours of facilities, or speakers at group meetings.

Types of industries
The five main types of industries are Product Industries, Process Industries, Subcontracting Industries, Service Enterprises and Wholesale and Retail Enterprise. Drilling down to the specifics it includes;

Agriculture & Forestry/Wildlife
Business & Information
Construction/Utilities/Contracting
Education
Finance & Insurance
Food & Hospitality
Gaming
Health Services
Motor Vehicle
Natural Resources/Environmental
Personal Services
Real Estate & Housing
Safety/Security & Legal
Transportation
Some other Niche industries

Linkage to your organization’s practices
Verizon Communications is mainly under Business and Information Industry. The company crosses over different industries but initially started as a product industry. Verizon, like most Fortune 500 companies uses survey as a method of measuring customer satisfaction. There is a big push on the net promoted and is being actively utilized by the company. Another method the company is using is Focused Group discussion. This is used to hear straight from the customers the suggested improvements and complaints that helps the company better their products and services.

Recommendations for your organization to improve on
As mentioned, Verizon relies heavily on surveys and focused group discussion to measure customer satisfaction. Aside from the Net promoter, there is an active follow up performed by individual employees to find out the level of satisfaction the customer has for the company. All these are reflected directly towards the company. Since the front line employees make the biggest impact on the products and service the company offers, every employee needs to be accountable for providing customer satisfaction. There needs to be a survey that directly talks about the employee that a customer had encountered. This way there is a level of responsibility put on that employee to be accountable for representing the company.

References
Best Practice in measuring Customer Satisfaction, http://www.leanconsulting.com
Business Industries, www.hubpages.com

Best Practices in Customer Satisfaction Research, www.marketforce.com/customer-satisfaction

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