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 Mentionshttps://harryandcojewellery.com.au/pages/returns-policy
Customer satisfaction Data Sources