Customer Satisfaction & Loyalty Measurement – Background
Customer satisfaction, as a specialized practice, is over 25 years old. Born out of the industry's focus on the quality movement in the '70s, the paradigm of linking satisfaction, loyalty and their impact on business outcomes has gone through many stages of development.
All businesses want satisfied and loyal customers who want to do business with them not only because they get better value in terms of product, price and service, but also because these customers continue to have pleasant experiences in dealing with them. To assess and monitor these attitudes and expectations, businesses today conduct a wide variety of customer feedback surveys. The underlying assumption is that loyalty goes hand in hand with the fact that the business is attracting the right type of customers who are either profitable now or possibly will be in the future.
Some companies that have well-established feedback systems (often called legacy programs) have a hard time migrating to the newer paradigm of satisfaction - loyalty research.
Market Probe, whose growth originated in customer satisfaction research, has seen and contributed to many of the paradigm shifts that took place over the last quarter of a century. At its core, every business wants its customers to be loyal buyers of its products or services, since high attrition rates coupled with the cost of acquiring new customers are more expensive than retaining existing ones.
Market Probe built its core competency in this area by focusing on key business needs in the use and implementation of customer satisfaction research. We advocate:
- Flexibility in customer satisfaction survey design
- Addressing the multiple needs of the various internal users of the feedback
- Reducing volumes of data into action-oriented information to turn the multitude of numbers into meaningful business insights