The two dimensions of customer satisfaction
The customer’s assessment of their satisfaction following a purchase and consumption of a product involves a comparison of two views:
- What were their EXPECTATIONS of value prior to purchase?
- What was their perception of
Customer value = economic utility
If you have previously studied economics, then the chances are you have seen the word “utility”. Utility is the economic term for the range of value and benefits received by consumer from the acquisition and … Read more...
Definitions of Customer Satisfaction
A nice, easy-to-remember customer satisfaction definition is:
Customer satisfaction is a consumer’s perception of how well an organization has delivered on their communicated value proposition.
The key points to note about this definition are:
What’s the Difference between Service Quality and Customer Satisfaction?
Although they are interrelated concepts, there is a difference between service quality and customer satisfaction. As discussed further in a separate article on customer satisfaction (CSAT), CSAT is the customer’s … Read more...
Overtime most customers will be “just” satisfied
Many organizations find it frustrating that their customer satisfaction (CSat) scores reach a plateau and it becomes very difficult to achieve real increases in CSat. However, this is caused “naturally” and, overtime, … Read more...
Is Pursuing High Customer Satisfaction Worthwhile?
The relationship between high customer satisfaction, leading to increased customer retention (loyalty), resulting in increased long-term profitability is generally well supported by academic research and commercial practice.
But there are situations and industries … Read more...