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Best Practices For Measuring Customer Satisfaction

1353 words - 6 pages

Best Practices for Measuring Customer Satisfaction

Customer satisfaction is perhaps one of the most talked about challenges of organizations in the public and private sectors. Indeed, this represents every organization’s sole purpose, and is at the heart of every organizations mission statement. It is seen as a key differentiator and increasingly has become a key element of business strategy. Customer satisfaction is tied directly to profitability. “Customer wants and needs drive competitive advantage, and statistics show that growth in market share is strongly correlated with customer satisfaction.”(Evans, 2010). If your customers are happy, they tend to be loyal. And if they’re ...view middle of the document...

Some of which include surveys, focus groups, complaints analysis, and user groups. We will explore each of these tools companies use to measure customer satisfaction.
Research of top companies seems to suggest that the customer survey method is used more often than any other. Surveys not only express what the organizations are doing well, but also point out areas that require improvement or attention. Most companies will use independent marketing firms to design and implement surveys that are customized to their industry. These independent organizations are chosen because they have more credibility to respondents and can ensure objectivity in the results. Surveys are easy ways to solicit customer information. They usually include questions pertaining to the customers’ perception of quality and value. Surveys have the advantage of low collection costs, and ease of analysis. Although there can be problems with data collection and analysis from surveys technology is improving the measurement of data (Oakland, Beardmore, 1995). Today, we have computer software to take data, analyze and distribute results. This ensures the accuracy of the data collected and reduces human error. When used they should be kept short and simple. A “Likert” scale is commonly used to measure or capture the customers’ response. Likert scales allow customers to express their degree of opinion using a five-point scale. A score of “5” suggest that a company is doing very well. Suggestions of “4” imply that customer expectations are met, but that the company may be vulnerable to its competitors. Responses of “3” suggest room for improvement and responses of “1” or “2” indicate serious problems. The implications of customer satisfaction surveys go far beyond the survey itself and will only be successful if fully supported by senior management.
A focus group is a small group of individuals brought together to answer questions about a company’s products or services. A focus group usually consists of anywhere from eight to ten people and can last up to two hours in length although some have been known to take longer. A focus group can provide a wide range of opinions about customer perceptions of service. They also provide insights into underlying assumptions about a product or service. Finding the correct mix of individuals to participate in a focus group is important. It is necessary to recruit individuals that are a representative sample of people from the target audience. Once you have selected your target audience it is time to select a moderator. The moderator is the person who will mediate the discussion of the focus group. This person will monitor the discussion and ensure that all participants have an opportunity to express their opinion, while also ensuring that enough time is spent on each topic. In addition they have to actively listen to each participant’s comments and observe the person’s body language for clues about his or her depth of or lack of feelings. A...

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