Why most customers are just satisfied

  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, all firms will find that their customer base primarily fits into the “just satisfied” range … Read more…

The High Customer Satisfaction and Low Profitability Paradox

  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 where this logical relationship may not hold true. Therefore, when reviewing customer satisfaction issues it … Read more…

What is the difference between customer satisfaction and customer value?

  Customer Satisfaction (CSat) and Customer Value are Different Concepts in Marketing Customer satisfaction and value are both fundamental concepts in the understanding of marketing. It is important to note that while they are highly interrelated, they also operate independently. Essentially, value is when a consumer perceives that they will get a good deal from … Read more…

Why under-promising and over-delivering is a poor strategy

  Don’t Under-promise and Over-deliver! It’s a common cliché to under-promise and over-deliver, which even some marketing consultants and professional speakers have tended to suggest. The problem with this approach is that it is based on a very simplistic understanding of the customer satisfaction model and is a very poor strategic choice for a firm. … Read more…

Understanding the SERVQUAL Model

  About the SERVQUAL (or RATER) Model (Note: This model is also referred to as the RATER model, which stands for the five service factors it measures, namely: reliability, assurance, tangibles, empathy and responsiveness.) As is indicated by the name of this model, SERVQUAL is a measure of service quality. Essentially it is a form … Read more…

Disconfirmation Model of Customer Satisfaction

  Introduction to the Disconfirmation Model of Consumer Satisfaction Essentially customer satisfaction is the consumer’s evaluation of how well the firm (usually a service firm) has lived up to their promises. As outlined in the general discussion of customer satisfaction, consumers compare their initial expectations of likely value against their perception of the actual value … Read more…