Why Satisfied Customers Defect Situation Analysis In terms of customer satisfaction and loyalty, there are many opportunities in which a organization or manager can Implement In order strengthen themselves In a competitive marketplace and allow for many of their customer to transition from unsatisfied to satisfied to completely satisfied. For a organization, the loyalty of a customer is key to success and the key to loyalty is satisfaction.
When dealing with customers, a organization’s primary strength Is to implement different techniques In order to increase the loyalty of a customer. As explained in the case, this can depend n the products and/or services which the organization offers. For example, through the research undergone from five different markets, it was discovered that for airlines customer loyalty Increases with promotional programs such as frequent flyer points and for automobile repair organizations things Like loaner vehicles or a free washing and waxing can heavily increase satisfaction and loyalty.
Weaknesses which can arise when dealing with customers, In particular UN-loyal or wrong, can Include a lack of effort by the organization In order to meet the wants of such customers, whether this being price sensitivity, poor service or a lack of rumination benefits. Furthermore the requirement of developing new and Innovative marketing plans can also prove to be a weakness, as it is difficult to launch a unique marketing plan to a heavily competitive marketplace.
Whether it be aiming to make customers completely satisfied or simply satisfied, there are many opportunities which a organization can undertake In order to Increase satisfaction. Whether It be promotional programs or offering high end sales or simply just presenting a more friendly/caring attitude towards the customers. When a company is looking to completely satisfy its customers it need to go 1 step above Its competition and it Is the competition that Is a large threat as an opposing company can attempt to offer better quality products or service which can lead to your customers becoming loyal to them.
Another threat that was present in the case was unload or wrong customers as these customers will “utilize a disproportionate amount of the companies resources, hurt the morale of frontline employees and disparate the company to other potential customers”. Assumptions and Missing Information List of Information not contained In the case: There was a lack of Market variation In the research part of the case. Although they coked at airlines, cars, hospitals, computers and telephone services, the food industry is also quite large in scale and it seemed necessary to cover that cafes.
The case itself presented some advice on ‘how to listen to customers’ or how to understand the ‘measures of loyalty but it lacked advice on measuring satisfaction or how to notice a decline in satisfaction. Although the case has some explanations as to why some customers may be dissatisfied or unload, it doesn’t mention why a lot of organizations have led to the customer being unsatisfied, where there internal issues? Environmental issues?
Economic issues? Problem Definition 1 . Unload or Wrong Customers As mention in the SOOT analysis, if a customer is initially and remaining unsatisfied it can lead to many long term issues for the organization such as the customers utilizing disproportionate company resources, hurting employee morale and will shame the company to other potential customers. 2. Lack of Organizational care to resolve the issue of unsatisfied customers.
As seen in the case analysis’s research within the hospital industry, some organization can either focus on some areas and lack focus in other areas which can lead to unsatisfactory or the actual employees can lead to customer unhappiness with their ace of interest to aid or properly service a customer. Development of Alternatives It is completely necessary for a company to identify unload or wrong customers and slowly isolate them from the organization.
The longer that customer remains the more damaging it will be in the long term. Either the organization can change their managers/employees with firing the old ones and hiring new ones. Or the organization can completely change their philosophy and stop being lazy and offer what competitors are offers but more. Evaluation and Recommendations to Management Customers satisfaction is key to loyalty and loyalty is key for an organization to thrive in the marketplace and become successful.
