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Author: Terry Echols
This is the first in what is sure to be a lengthy series on "Customer Satisfaction". The information contained here will cross over as training material quite nicely. In order to present the topic of "Customer Satisfaction" it is important that we have the same definition, working for the same page, so-to-speak. We should first identify the factors that contribute to customer satisfaction. Then move on to explain the differences between customer satisfaction and customer loyalty. And lastly, describe how a satisfied customer becomes a loyal customer.
The Global Market Place
Look at the corporate world of today. With the deregulations and creation of free-trade marketplaces in the maturing global market, what is truly sought after in the corporate world? Reductions in costs and increases in revenue: PROFIT!
Companies have explored many ways to reduce production costs: robotics, outsourcing production to specialists, outsourcing the labor force, etc. In the end, to increase revenue, a company needs to increase the number of consumers who purchase its products.
Competition is fierce. Companies are constantly vying for a bigger piece of the market. Products that are hot, and well-received in the marketplace, often have several clones, produced by other manufacturers trying to tap into that market share. This competition provides value to consumers by allowing them to have both choice and reasonable pricing for the products and services they desire.
So the question becomes: if there are lots of options available, all competitively priced, what sets one product apart form another?
Take, for example, the various gaming consoles on the market today: PS2, XBOX, and GameCube, to name a few. The different platforms compete aggressively for the consumer's entertainment dollar, each trying to be different, and preferred, for one reason or another.
Take this time to ponder these…
1.) Think of the last time you purchased a product and had several similar models from which to choose. What did you buy?
2.) What prompted you to purchase that specific brand?
3.) Did you have any issues with the product? If so, what was the issue?
4.) What did you think about the product after using it?
Contributing Factors
There are four key areas that combine to product customer satisfaction with a product: Value, Quality, Service and Partnership.
• Value refers to the customer's perception that they are paying a fair price for the product they are receiving.
• Quality refers to the customer's expectation of a well-made, reliable product.
• Service is the customer's expectation that the company will stand behind their product if any issues arise.
• Partnership refers to the availability of complementary products and services that enhance the use of the primary product.
Other contributing factors include the following
• Does the product work as advertised?
• Does it meet the customer's needs?
• Was the company accessible?
• Was the company responsive?
• Were problems resolved efficiently and appropriately?
• Was the product's documentation comprehensive?
• Did the product provide a good return on investment (ROI)?
All these factors can either enhance or reduce a customer's overall satisfaction with a product or service. But why do companies care about customer satisfaction in the first place? If they've already purchase the product, the money's in the bank; why is their experience important?
The answer lies in the difference between customer satisfaction and customer loyalty, which we'll address in part 2. Here is an exercise for you to measure your own brand loyalty.
On a piece of paper write the following allowing spacing between headings to write you responses.
List some product you have purchased that you were satisfied with, and why you were satisfied with them.
List some products you have purchased that you are loyal to, and why you are loyal to them. (i.e. "I only use Caress body wash", or "I only use salon hair products, not that stuff you buy in the stores." What is it about this, or these, products that make you perceive it as "The" definitive brand and no other will do?) Article Source : http://www.articledashboard.com Terry Echols is a publisher at NetOneSolutions.com aimed at aspiring home based business owner. He has a Bachelors Degree in Information Technology and Master Degree in Business Administration. He hopes to educate his readers on acquiring multiple streams of online income. He also owns CostumersNetwork.com , an online retailer of Halloween Costumes, Makeup and Accessories.
Courtesy of: Net One Solutions Article Directory
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