Why Organizations Focus On Customer Satisfaction

Customer Satisfaction

The definition of customer satisfaction has been widely debated as organizations
increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of
situations and connected to both goods and services. It is a highly personal assessment that is
greatly affected by customer expectations.

Businesses monitor customer satisfaction in order to determine how to increase their
customer base, customer loyalty, revenue, profits, market share and survival. Although greater
profit is the primary driver, exemplary businesses focus on the customer and his/her experience
with the organization. They work to make their customers happy and see customer satisfaction
as the key to survival and profit. Customer satisfaction in turn hinges on the quality and effects
of their experiences and the goods or services they receive.

Customer Satisfaction Measurement: –
A basic and effective base line customer satisfaction survey program should focus on
measuring customer perceptions of how will the company delivers on the critical success
factors and dimensions of the business as defined by the customers:

For example:

• Service Promptness
• Courtesy of Staff
• Responsiveness
• Understanding the customer problem, etc

Measuring customer satisfaction
Organizations need to retain existing customers while targeting non-customers. Measuring
customer satisfaction provides an indication of how successful the organization is at providing
products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state of
satisfaction depends on a number of both psychological and physical variables which correlate
with satisfaction behaviors such as return and recommend rate. The level of satisfaction can
also vary depending on other factors the customer, such as other products against which the
customer can compare the organization’s products.

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