Customer Satisfaction & Loyalty
Jerry W. Thomas
Source: The Global Leader in analyitical research systems// http://www.decisionanalyst.com/services/satisfaction.dai
Why Is Satisfying Your Customers Important?
Satisfying customers is the only way to stay competitive in today's marketplace. Customers have an expectation of service and product performance that must be met. The balancing act between what customers want and what your company can provide must be optimized in order to maximize your firm's long-term profits. This occurs in two ways:
- With precise information, companies can focus on issues that truly drive customer satisfaction. A directed focus often leads to cost reductions because companies can emphasize improvement in areas of customer concern and de-emphasize focus in other areas.
- Focusing on motivators of customer satisfaction leads to more loyal customers, who tend to be the most profitable customers (i.e., repeat business is usually the most profitable). An inclusive customer satisfaction and loyalty program can, therefore, be considered a source of future profits.
The goal of Decision Analyst's Customer Satisfaction & Loyalty research is to help companies maximize long-term profitability through reaping the "lifetime value" of its customers.
Types Of Customer Satisfaction Research
Helpful in determining strengths and weaknesses of corporate satisfaction and loyalty programs, motivation research is usually an introductory step in developing an integrated customer satisfaction and loyalty system.
Our experts conduct in-depth motivational research interviews with both employees and customers to develop insight into the performance of your current satisfaction program. Recommendations to improve customer satisfaction and loyalty are made based on this motivational research.
Studies repeated at specified intervals give organizations a history of information about customer or employee satisfaction, revealing trends in both satisfaction and loyalty. Tracking studies are especially useful in determining and monitoring key variables that influence satisfaction and loyalty-which in turn, influence company profitability.
Tracking studies may be conducted using any of the following methods:
- Telephone
- Internet
- Interactive Voice Response Systems
These studies provide insight into customer satisfaction at different points of customer contact. For example, customers who call a customer care center would complete a satisfaction survey soon after their call-center experience. Other customers who purchase a product in a retail operation would receive a questionnaire requesting information on that experience.
Transaction monitoring focuses on increasing customer satisfaction at particular stages or in specific places. Such a microexamination of customer behavior allows companies to improve profitability through streamlining processes and improved customer loyalty.
Transaction monitoring may be conducted using any of the following methods:
- Telephone
- Internet
- Interactive Voice Response Systems
The exception-system approach allows for the identification of problems that may occur in an organization by encouraging customers to give input when they feel dissatisfied. The goal, therefore, is to identify areas of weakness that should be addressed to improve customer satisfaction. Exception systems may use any of the following methods:
- Internet
- Interactive Voice Response Systems
- Comment Cards
This analysis gives customer satisfaction and loyalty programs an added level of information about customers. A typical customer value analysis classifies customers based on how much they spend and how much value they add to your company. Specifically, the analysis allows a directed set of actions to be developed to increase satisfaction and loyalty of the most profitable and valuable customers.
Decision Analyst consultants provide insight into all variables that influence customer satisfaction and loyalty, such as product design, strategic positioning, brand strength and brand equity, product quality, competitive activity, customer service, and advertising. Through a careful examination of these variables and the interactions among them, our consultants develop a satisfaction strategy that will maximize long-term profitability.
Employee Satisfaction Research
Employee satisfaction measurement is a crucial first step in most corporate satisfaction and loyalty programs. Employees are the contact points between the corporate brand and customers. Dissatisfied employees often lead to dissatisfied customers. Employee satisfaction can help maximize long-term profitability in four ways:
- Happy employees tend to do higher quality work.
- Happy employees tend to be more productive.
- Happy employees are more likely to stay with your company.
- Happy employees tend to create happy customers.
Employee Perception Research
Studying employees' perceptions offers insight into their knowledge of customer satisfaction. If employees incorrectly believe customers are satisfied, it is unlikely that changes will be made in product or service levels to attempt to satisfy customers.
Likewise, if employees incorrectly believe customers are dissatisfied, changes in products or services that could adversely affect customer satisfaction could be implemented. Employee perception studies are, therefore, a crucial component of satisfaction programs that are geared to maximize long-term corporate profitability.
Dealer Satisfaction Research
Among automotive OEM’s, managing expectations of new vehicle dealers is a critical component in optimizing business relationships and managing long term profitability. Satisfaction with financing, service promotion, parts delivery and product issues are some of the essential types of information required to effectively manage dealer relations. We use both qualitative and quantitative techniques to help OEMs diagnose problems and track satisfaction among their dealer body.
Decision Analyst’s Customer Loyalty Simulator™ predicts future market outcomes as a function of rational and emotional perceptions of the brand, its products or services, and its customer service.
Customer Satisfaction & Loyalty Services
If you would like more information on Customer Satisfaction & Loyalty Research, please contact Jerry W. Thomas by emailing jthomas@decisionanalyst.com or calling 1-800-ANALYSIS (262-5974) or 1-817-640-6166.
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