CUSTOMER SATISFACTION
Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes its
products and services.
An organization’s main focus must be to satisfy its customers. This applies to industrial firms,
retail and wholesale businesses, government bodies, service companies, nonprofit organizations,
and every subgroup within an organization.
Model of Customer Satisfaction
5 Levels of Customer Satisfaction
1. Not Satisfied
It is pretty simple. A customer is not satisfied when their needs are not met.
This dissatisfaction will result in the consumer looking to other organizations to meet
their expressed needs.
The risk with an unsatisfied customer is that they will share their dissatisfaction with other
potential customers in an attempt to protect people they know from a less than satisfactory
experience. No business wants that.
An unsatisfied customer may be the result of bad service or product but it also may be the result
of unrealistic expectations.
For instance, wait times can be very frustrating for a customer. No one enjoys sitting in a
waiting room. Particularly if they don’t know how long they will be sitting there.
Help to manage the customer’s expectations by informing them of typical wait times and
providing distractions during the wait.
For example, offer free food, coffee and have a neutral program playing on a television.
The goal is to consume the customer’s time so they don’t get annoyed with the wait.
Think of the lines at Disney. They do a great job of winding people through a line and distracting
them as they go.
2. Slightly Satisfied
A slightly satisfied customer may have some expectations that are being met but others are
not. Everything is so, so.
This customer may return but may go somewhere else if offered a more appealing option.
For instance, I went to the same doctor for many years and loved him. However, his office staff
was consistently rude and incompetent – resulting in unpleasant interactions.
I decided to find another doctor, not because of him, but because of his employees.
The sad news is I think he ever found out why I left. Because he never asked.
3. Satisfied
A satisfied customer is one who gets what they expect. Nothing more. Nothing less.
There are no wows in the experience and they leave satisfied but not a smiling advocate.
For instance, think about driving through your favorite fast-food restaurant.
You receive what you ordered and it was what you expected. Not better or worse than prior
experiences.
You were satisfied but probably won’t call your friends to share the experience.
4. Very Satisfied
A very satisfied customer not only gets their needs met but may experience some unexpected
surprises that enhance their experience. The wow factor or surprise element.
This is when customer satisfaction gets fun.
Figure out a way to throw unexpected surprises at the customer to enrich their experience.
As an example, think about that drive-through restaurant experience, now imagine that a cookie
was thrown in the bag simply as a bonus.
That simple gesture may take the customer from being simply satisfied to very satisfied.
As well as a moment to share with friends.
5. Extremely Satisfied
An extremely satisfied customer is the ultimate goal.
This level of satisfaction is a customer who has an experience that consistently exceeds all
expectations and has wow factors associated with every experience.
These customers are so excited about the service they received that they become an advocate for
the organization and often recruit new customers because they want to share the positive
experience.
For instance, we have a favorite restaurant that we go to for special occasions. They do an
outstanding job with the wow factor.
The wait staff greets us by name. Remember the occasion we are celebrating, and share
unexpected surprises during the entire experience.
Factors that Influence Customer Satisfaction
1. Accessibility
2. Empathy
3. Language
4. Response Time
5. Convenience
6. Choices
7. Simplicity
8. Quality
9. Reasonable Prices
10. Appreciation
11. Loyalty Programs
12. Community
1. Accessibility
Have you made it easy for customers to interact with you to ask questions, voice concerns, or get
a problem solved? Or, do customers have to jump through a number of hoops, do an extensive
Google search, and pray to the gods of customer service that they can get a hold of you?
While it may be unpleasant dealing with an unhappy customer, it's significantly worse dealing
with an unhappy customer who took 2 hours out of their day to track you down.
2. Empathy
Mistakes happen, and despite the old adage, the customer isn't always right… but if you'd like to
keep them as a customer, they must always be happy. You can ensure this by hearing them out
when they are upset, showing concern for the situation, and letting them know that you'll do
everything in your power to make it right.
3. Language
Every industry and company has its own "shop terms" and lingo that they use to describe what
they do and how they do it. Unfortunately, this insider language doesn't resonate with customers.
They want to know that you understand their problem and have a solution for it. In order to
communicate that, you need to figure out what words they use when they talk about it.
4. Response Time
We live in a fast-moving world. Customers expect products to arrive on their doorstep hours
after they order them, and questions to be answered within minutes (if not sooner!) of them
asking.
While many companies can't afford round-the-clock staff, away messages that contain answers to
FAQs and chatbots make it possible to interact with your customers on their time.
5. Convenience
Very few customers will go out of their way to do business with you. If you make it difficult for
them to browse, shop, schedule, or buy, they'll be looking for another company to provide the
solutions they need.
It's important to review your buyer's journey on a regular basis and see if any areas could be
tweaked to increase convenience.
6. Choices
Customers like to have options when it comes to purchasing. They want different colors, styles,
levels of services, and different methods for delivery. These choices help them feel in control of
their own buying experience.
7. Simplicity
While customers like having options, too many options can cause analysis paralysis and cause
your potential customer to give up before they finalize a purchase. As you design your products
and your processes, remember that a confused mind never buys.
8. Quality
Your customer service may be top-notch, but if your product is of poor quality, you won't have a
returning buyer. Make sure that you create the best possible product that customers can't live
without.
9. Reasonable Prices
There will always be low range, mid-range, and high range prices. If your products are of superb
quality and your customer service consistently wows, it's okay to charge more.
However, if you charge more than the market will bear, and more than your ideal customer can
afford, you'll price yourself right out of business.
10. Appreciation
Customers want to feel appreciated for doing business with you. You should have some sort of
follow-up procedure in place to say thank you. This can range from a quick email to a thank you
gift (depending on the value of the product or service), but will always let your customer know
that they are important to you.
11. Loyalty Programs
It's wonderful to offer incentives to new customers coming in, but what about the loyal
customers that have stuck with you from the beginning? Consider instituting some sort of loyalty
program where existing customers receive discounts, freebies, or access to special content or
products as a thank you for their continued support.
12. Community
The business relationship doesn't have to stop just because the credit card has been swiped. As
humans, we want to feel like we are a part of something bigger. Creating a community, whether
virtual or in-person, around your product, will help keep your customers engaged with your
brand.
Customer Satisfaction Factors in Service-Based Industries
Not every business has a tangible item that they sell to their customers. For some organizations,
your "product" is a service that you provide to solve your customers' problems. These businesses
fall under the category of "service industry," and include:
• professional services like lawyers or CPAs
• marketing
• insurance
• spas or other wellness-related services
• consultants
• education
• events
While you won't be providing a traditional product for your customers, their satisfaction is still
essential for your business to succeed.
All of the above factors including (but not limited to) customer service, the quality of your work,
empathy when addressing a problem, and customer appreciation, still hold true for a service-
based business.
Your "product" is your service, so make sure the quality is up to par. In addition, if you're
stepping into customer's homes, there's a level of trust that you must build to make them feel
comfortable welcoming you into their space. You'll also need to be respectful of their home and
their time.
Customer satisfaction is essential to the future of your business. Not only do happy customers
come back and become loyal, repeat buyers, but they also share their experiences with friends
and family.
There is no better marketing than word-of-mouth from your fans. Schedule out some time to
evaluate your current customer satisfaction reality, and then implement the changes necessary to
keep your customers happy, engaged, and coming back for more.
What Is Customer Retention?
➢ Customer retention encompasses many different activities. At a basic level, customer
retention looks at how long customers stay customers.
➢ Do they purchase a product just once?
➢ Do they subscribe for a year and not renew?
➢ Do they become brand loyalists, making repeat purchases across their lifetime?
The answers to these questions show the larger role of customer retention, which is how well a
company can turn customers into repeat buyers and prevent them from going to a competitor.
Customer retention strategies represent the processes, activities, and tools businesses use to build
customer loyalty and improve their lifetime value to the company.
