What are the goals of customer satisfaction
What is meant by customer satisfaction?
The focus of marketing is on the customer, customer benefit and customer satisfaction. Customer satisfaction is a central part of marketing.
Customer satisfaction - expectation vs. reality
The customer compares a service received with the service actually received (target / actual comparison). If the expectation is exceeded, there is usually a higher level of customer satisfaction. If expectations are not met, customers are usually dissatisfied. While dissatisfied customers either stay away in the future or spread their negative experiences (usually more often than positive experiences), customer satisfaction is an important prerequisite for improving customer loyalty (apart from monopolies).
Customer satisfaction is often also explained using the C / D paradigm (confirmation / disconfirmation paradigm). However, marketing experts disagree as to whether the fulfillment of an expectation leads to satisfaction or whether this only occurs when the expectations have been exceeded.
Customer satisfaction is one of the so-called psychological marketing goals. They can make a positive contribution to the fulfillment of economic goals such as increasing profits or increasing market shares.
The likelihood that satisfied customers will buy again and recommend them to others increases with increasing customer satisfaction. First of all, it is important for companies to be informed about the level of customer satisfaction, e.g. through surveys. This gives the entrepreneur valuable information to improve the services offered.
Possible behavior in the event of dissatisfaction
- No behaviors
- Negative word of mouth
Possible connection between customer satisfaction and customer loyalty
In numerous empirical studies, the connection and interaction between customer satisfaction and customer loyalty was examined. Today it is considered certain that customer satisfaction has a positive effect on customer loyalty. However, as is so often the case, it depends on the individual case, the service or the product.
There are certainly services or products that cause high customer satisfaction, but do not necessarily result in high customer loyalty. The consumer often wants variety and variations (e.g. chocolate).
Possible effects of high customer satisfaction
Various effects of a high level of customer satisfaction are conceivable. Ideally, it leads to customers returning or using the services again. The willingness to recommend will probably increase and, in the best case, lead to more customers. Another effect is higher customer loyalty, which has positive effects on the achievement of economic corporate goals (increase in sales, higher earnings).
What causes high customer loyalty?
Customer-oriented companies strive for a high level of customer loyalty because they want to benefit from their positive effects. In various studies, among other things, significant profit growth rates due to increased repurchase rates were determined.
What causes high customer loyalty?
|Effects on profit||Effects on costs|
|Repurchase||Cost advantages compared to new customer acquisition|
|Cross selling||Handling advantages|
|Lower price sensitivity||Increased fault tolerance|
|More orders||Greater willingness to provide information|
Companies should strive for the highest possible customer satisfaction in order to benefit from the positive effects. Anyone who neglects these issues risks losing sales and profits. As a rule of thumb, the marketing literature often states that it is up to five times more expensive to win a new customer than to retain an existing one.
Contentment is the philosopher's stone. Contentment turns into gold whatever touches it.
Quote from Benjamin Franklin (1706-1790) American statesman, scientist, and writer
Would you like to achieve more satisfied customers and greater customer loyalty? With our MARKTPRAXIS Consulting we are sure to find a suitable solution for your company.
Addendum: This post appeared on our website back in 2013 and has now been moved to the blog after the relaunch due to the restructuring of the website.
Cover picture: Photo by Maria Molinero on Unsplash
- Mike on October 19, 2017 at 9:17 am
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