Customer Satisfaction Satisfaction Is a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance In relation to his/her expectations. Short of expectation unsatisfied customer Matches expectation = Highly satisfied customer A short of expectation means an unsatisfied customer while a matched expectation means a highly satisfied customer. Customer satisfaction is the relationship of perceived performance to expectation.
It is a form of expectation of value on some actors Like wide array of products, excellent brand quality (reliability, durability, performance). Moderate prices. Good services and personnel and corporate Image. Some of the influencer of buyers expectations are their past buying experience, friends, associates advice, marketers and competitors’ information and promises. Perceived Performance – Buyer’s Expectation = Satisfaction Buyer’s satisfaction is a function of the product’s perceived performance and the buyer’s expectation.
High satisfaction creates an emotional affinity with the brand, not Just a rational reference. The result Is high customer loyalty. There are some ways on how to achieve highly satisfied customers. Customizing is one way which is to make a company more responsive to its customers and to be able to attract new one by practicing a strong customer orientation. Another way is tracking customers expectations, perceived company performance and customer satisfaction. Companies should also monitor their competitors’ performance.
Customer satisfaction must be a goal and a marketing tool of the company. There are also measurement techniques to monitor customer satisfaction. It Is through periodic surveys, customer loss rate, mystery shopper or ghost shopping and competitors’ performance. Customer Satisfaction will also depend on quality. Quality is the totality of features and characteristics of products or services that satisfy stated or Implied needs. Product or Service = or > (meets or exceeds) Expectations Customer Value Buyers will buy from a firm that they perceive to offer the highest customer delivered value.
Customers are value maximizes. It is the difference between what a customer gets from a product and what he or she has to give in order to get it. Total Benefits – Total Costs = Delivered Value Customer delivered value Is the difference between total customer value and total customer cost. Total customer value is the bundle of benefits customers expect from a given product or service. Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, and using the product or service.
Maximizing customer value means cultivating long-term customer relationships. Identify features and benefits that customers value – Assess quantitative importance of attributes and benefits – Assess company’s and competitors’ performance on different values against rated performance – Examine ratings of specific segments – Monitor customer values over time Loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.
Value proposition is cluster of benefits many promises to the customer. To build loyalty the company should interact with customers, develop loyalty programmer, personalize marketing and create institutional ties. Customer lifetime value is total profit estimated to result from an on-going business relationship with a customer over the life of relationship. It is the art of attracting and keeping profitable customers. Companies should attract and retain loyal and satisfied customers by giving them value and quality choices and building relationships.
