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...

Other Papers Like Best Practices for Measuring Customer Satisfaction

Best Practices for Supervisors Essay

3136 words - 13 pages Best Practices Manual Best Practices Manual for Supervisors Axia College University of Phoenix MGT/210 Supervision and Leadership 1 Best Practices Manual 2 February 3, 2008 SHOWING COMMUNICATION SKILLS Communication is about more than the meaning of what you say. Sometimes people who communicate only about information look arrogant and cold. At the same time, people who try to be polite and make small talk instead of

Best Practices Manual for Supervisors Essay

2160 words - 9 pages Final Assignment: Best Practices Manual for Supervisors Axia College University of Phoenix Rodney A Workman Mgmt/210 Supervision and Leadership Instructor: Antonio Greene October 31, 2010 Introduction When it comes to working in the supervisory position, one will face great challenges to keep their group functioning within determined parameters; supervisory positions cover many aspects when it comes to managing a group, and getting

Best Practices for Online Teaching

1384 words - 6 pages Based on the course readings and discussions as well as other sources, present best practices for online teaching. Use a Web 2.0 tool of your choice to address best practices for online teaching. You are welcome to write a 2-3 page paper instead of using a Web 2.0 tool. Your presentation/product should address 2-3 key points. You should focus on methods for engaging students in complex content as well as guiding students to

How Critical Is User Generated Content for Customer Satisfaction in Accommodation Aggregator Sites?

4639 words - 19 pages How critical is User Generated Content for customer satisfaction in accommodation aggregator sites? 34.125 STUs max. Now 25111 + 1600 (2 charts) Introduction and problem formulation: The Internet has grown to be one of the most effective means for tourists to seek information in the planning process of their vacation. Tourists find themselves navigating through an immense amount of information that could be relevant for the planning, which

Customer Satisfaction

1176 words - 5 pages of your existing customers, it can also act as a point of differentiation for new customers. 3. It reduces customer churn An Accenture global customer satisfaction report (2008) found that price is not the main reason for customer churn; it is actually due to the overall poor quality of customer service. Customer satisfaction is the metric you can use to reduce customer churn. By measuring and tracking customer satisfaction you can put

Customer Satisfaction in Commercial Bank

1563 words - 7 pages report on “Customer Satisfaction: A Study on Standard Chartered Bank, which I have prepared based on my learning from twelve -week organizational attachment. I have tried my best to utilize the opportunity of working as an intern in a well reputed private commercial bank like Standard Chartered Bank. In this report I have tried to measure the customer satisfaction. This report includes a short overview of general banking activities, measuring

Bus 499 Mod 1 Case

1242 words - 5 pages measuring the business. It puts the focus on people as the foundation for business success(Gumbus and Lussier, 2006). SGC While SGC included the customer perspective in their assesment of the company’s operation, their main focus was on the Internal Process Perspective. The formation of the cross-functional management teams allowed for leadership from within the company to decide what areas of the company were to be measured. Chapman decided the

Tqm Proposal

3894 words - 16 pages   1.0Title THE IMPACT OF TOTAL QUALITY MANAGEMENT (TQM) ON CUSTOMER SATISFACTION AND COMPETITIVE ADVANTAGE The proposed title for this research study is The Impact of Total Quality Management (TQM) to achieve competitive advantage in the Hospitality Sector. The research will give a background of information and literature review on TQM practices and how it enhances customer satisfaction by offering effective customer service. It will present

Integrated Marketing And Customer Satisfaction

521 words - 3 pages the listening party takes place. ← Question 4: Develop an approach to measuring customer satisfaction with your company’s product/service. Some of the measurements of consumer satisfaction being adopted come from other companies. One way to measure customer satisfaction is the inclusion of physical surveys inside the production jacket of the cd artwork. Customers can fill out and return the surveys and receive and emailed coupon for free

Customer Satisfaction

4517 words - 19 pages researchers have proposed a virtuous chain of effects from improved customer satisfaction to profits. In particular, satisfaction is thought to improve share-of spending, which in turn leads to higher customer revenue and customer profitability. Keiningham et. el. (2005) found that a simplistic focus on improving customer satisfaction for all customers in order to improve share-of-wallet and customer revenue does not seem to represent the best

Plan and Measure Perfomance

937 words - 4 pages with the customer. The action could be possible termination because Wal-Mart’s employees are part-time and there will not be enough employees for the demand of customers who need assistance. This could affect the company’s performance. To measure high performance, benchmarking technique would be a benefit. Benchmarking is “the search for the best practices among competitors or non-competitors that lead to superior performance” (Robinson &amp

Related Essays

Best Practices For Measuring Customer Satisfaction

646 words - 3 pages Best Practices for Measuring Customer Satisfaction Dana Atchley Keller Graduate School Introduction There are several means for measuring customer satisfaction including surveys, focus groups, complaints analysis and user groups. Research of top companies around the world seems to suggest that the customer survey method is used more often than any other. There can be problems with data collection and analysis from surveys but

Measuring Customer Satisfaction Essay

1163 words - 5 pages Best practices for measuring customer satisfaction? Is it upper level management, hired consultants, surveys, or reactions to industry swing? So many choices but what really is a best practice. Customer satisfaction programs, research, employee satisfaction, and personal experience all play a role in measuring customer satisfaction. Even when using those practices it takes effort and continuous improvement to stand a chance on improving

Bsop 588 Measuring Customer Satisfaction Essay

1106 words - 5 pages MEASURING CUSTOMER SATISFACTION KELLER GRADUATE SCHOOL OF MANAGEMENT BSOP – 588 – MANAGEING QUALITY BY: KACHENA BOYD When I think of the word customer, generally what comes to mind is a person or organization that buys goods or services from a store or a business. As it relates to quality management, an organizations image is very important to the customers. In any business, providing quality services delivers benefits to the business

Measuring Customer Satisfaction At Amercian Express

1215 words - 5 pages Measuring Customer Satisfaction at American Express      American Express is a world wide travel related service company. American Express works with both consumers and business with their financial planning as well as offers numerous amounts of credit card products and travel assistance. They have many products and services that are used throughout the world by consumers and businesses. As American Express moves towards the future, like most