Customer satisfaction

Theoretical Ground and Models of Customer Satisfaction

• Customer satisfaction is studied from different perspectives.
• Expectations prior to purchase and customer perception of product performance are important factors.
• Customers have various types of expectations about a product.
• Customer satisfaction has both emotional and cognitive components.
• Satisfaction can evolve over time as customers repeatedly use a product.
• The Disconfirmation Model compares expectations and perceived performance.
• Satisfaction is the outcome of the comparison between expected rewards and incurred costs.
• There are four constructs in the disconfirmation paradigm: expectations, performance, disconfirmation, and satisfaction.
• Satisfaction can be evaluated as the sum of satisfactions with different product features.
• Cognitive and affective models of satisfaction are considered as alternatives.

Methodologies and Metrics for Measuring Customer Satisfaction

• American Customer Satisfaction Index (ACSI) predicts GDP and PCE growth.
• ACSI data is related to financial performance and consumer spending.
• Kano model classifies customer preferences into five categories.
• SERVQUAL or RATER framework indicates the gap between expectations and experience.
• J.D. Power and Associates provides industry rankings and product awards.
• Net Promoter Score (NPS) measures willingness to recommend a company.
• Response rates for e-surveys range from 5% to 15%.
• Likert scale and single-item percentage measure are used in customer satisfaction surveys.
• Affective measures capture consumers' attitudes towards a product.
• Cognitive element involves appraisals and conclusions based on performance.
• Regression to the mean effect is observed in customer satisfaction responses.

Importance and Impact of Customer Satisfaction

• Customer satisfaction is a key performance indicator in business.
• It is a major differentiator in a competitive marketplace.
• It is part of a Balanced Scorecard in business strategy.
• A customer satisfaction metric is found to be very useful by marketing managers.
• It provides a leading indicator of consumer purchase intentions and loyalty.
• Customer satisfaction is crucial for business success.
• It leads to customer loyalty and repeat purchases.
• Satisfied customers are more likely to recommend a business to others.
• It helps in building a positive brand image.
• Customer satisfaction is linked to higher revenue and profitability.
• Increased customer loyalty and retention.
• Positive word-of-mouth recommendations.
• Higher customer lifetime value.
• Competitive advantage in the market.
• Improved brand reputation and customer trust.

Factors Affecting Customer Satisfaction

• Quality of products or services.
• Timeliness of delivery or service.
• Customer service and support.
• Price and value for money.
• Overall customer experience.

Strategies for Improving Customer Satisfaction

• Training and empowering employees to provide excellent customer service.
• Personalizing customer interactions and addressing individual needs.
• Continuous improvement of products and services based on customer feedback.
• Resolving customer complaints and issues promptly and effectively.
• Building strong relationships with customers through loyalty programs and personalized offers.

Customer satisfaction Mentions

Customer satisfaction Data Sources