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Customer Satisfaction The Prime Concern of Your Business and the Critical Component of Its Profitability |
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"Satisfying the customer is a race without finish." Vernon Zelmer
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8 Best Practices of Successful Companies |
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The Things that Customers Want |
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Customers will usually come back if:
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10 Rules for Building a Successful Business By: Sam Walton, Founder of Wal-Mart |
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Customer Satisfaction: Main Benefits1
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Customers stay with the company longer
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Customers deepen their relationship with company
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Customers demonstrate less price sensitivity
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Customers recommend company's products or services to others
Importance of Customer Satisfaction: Statistics1
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It costs between five and six times more to attract a new customer than to keep an existing one.
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Companies can boost profits anywhere from 25 to 125% by retaining merely 5% more existing customers.
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Only one out of 25 dissatisfied customers will express dissatisfaction.
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Happy customers tell 4 to 5 others of their positive experience. Dissatisfied customers tell 9 to 12 how bad it was.
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Two-thirds of customers do not feel valued by those serving them.
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Creating Competitive Disruption: 7 Strategies |
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8 Attributes of Corporate Success |
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Traditional Strategy versus Strategic Innovation |
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Traditional approaches |
Strategic Innovation approach |
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Are technology-driven (seek consumer satisfaction) |
Is consumer-inspired (seeks consumer delight) |
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>>> More |
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The GE Leadership Effectiveness Survey (LES) |
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Customer Satisfaction a Critical Component of Profitability
Exceptional
customer service results in greater
customer retention, which in turn
results in
higher profitability.
Customer loyalty is a major contributor to
sustainable profit growth. To achieve success, you must make superior
service second nature of your organization. A seamless integration of all
components in the service-profit chain
employee satisfaction,
value creation, customer satisfaction, customer
loyalty, and profit and growth links all the critical dynamics of top
customer service.
Sadly, mature companies often forget or forsake the thing that made them successful in the first place: a customer-centric business model.
They lose focus on the customer and start focusing on the bottom line and quarterly results. They look for ways to cut costs or increase revenues, often at the expense of the customer.
They forget that satisfying customer needs and continuous value innovation is the only path to sustainable growth. This creates opportunities for new, smaller companies to emulate and improve upon what made their bigger competitors successful in the first place and steal their customers.
Customer Expectations
Customer is defined as anyone who receives that which is produced by the individual or organization that has value. Customer expectations are continuously increasing. Brand loyalty is a thing of the past. Customers seek out products and producers that are best able to satisfy their requirements. A product does not need to be rated highest by customers on all dimensions, only on those they think are important.
Kaizen Mindset
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Customer-driven
strategy for improvement any management activity should eventually
lead to increased customer satisfaction...
More
Case in Point Canon Production System (CPS)
The Canon Production System (CPS) is about:
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Environmentally-conscious manufacturing and logistics
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Quality-oriented methods
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Lower costs
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Shorter deadlines
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... All aim for maximum customer satisfaction... More
Customers for Life
By: Brian Tracy
The purpose of a business is to
create and
keep a customer. If a business successfully creates and keeps customers
in a cost-effective way, it will make a profit while continuing to survive
and thrive. If, for any reason, a business fails to attract or sustain a
sufficient number of customers, it will experience losses. Too many losses
will lead to the demise of the enterprise.
According to Dun and Bradstreet, the single, most important
reason for the failure of businesses in America is lack of
sales. And, of course, this refers to resales as well as
initial sales. So your companys job is to create and keep a
customer, and your job is exactly the same. Remember, no matter
what your official title is, you are a salesperson for yourself
and your company...
Customer Satisfaction
Illusion
and Trap
Today, "it would be difficult to find a company that doesn't proudly claim to be a customer-oriented, customer-focused, or even-customer driven enterprise. But look closer at how these companies put their assertions into practice, and often you discover an array of notions and assumptions that range from superficial and incomplete to misguided."3 Some examples of customer satisfaction illusion include:
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believing that by conducting market surveys and focus groups you know all there is to know about your customers
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believing that investing in awareness programs for employees and putting customers' pictures on the cover of your annual report is enough to achieve customer satisfaction
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believing that the job of CEO is done by giving his or her direct phone number to some valued customers
All these approaches are well intentioned, but "all of them offer, at best, partial solutions to their customer satisfaction, and all, as a result, fall short."3
There is nothing wrong with the notion of customer satisfaction per se. "The problem comes with its pursuit, which if fraught with peril. Most plans to improve customer satisfaction stand on two shaky and dangerous assumptions."3 What they create is an illusion the customer satisfaction trap. Too often, measurement of customer satisfaction are misleading they tell you very little about where you are, and they can't show you where to go.
Process-managed Enterprise
A process-managed enterprise supports, empowers and energizes employees, encourages their initiative, enables and allows its people to perform process work. "Process work is work that is focused on the customer, work that is directed toward achieving results rather than being an end in itself, work that follows a disciplined and repeatable design. Process work is work that delivers the high-level of performance that customers now demand."6... More
Case in Point Benefits of Business Process Management
The payoffs of
process mastery can be breathtaking. Costs melt away,
quality goes through the roof, and time
spans shrink to a fraction of what they were. In 1999 Hammer and Company6
surveyed dozens of companies that had adopted the process approach to work
and business.
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In order fulfilment, cycle times had typically decreased by 60% to 90%
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"Perfect orders" (those delivered on time, with no mistakes) had increased by 25%
These improvements in process performance paid off in the critical enterprise currencies of customer satisfaction, customer retention, and corporate profits.... More
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Discover much more in the FULL VERSION of e-Coach |
Measuring Customer Satisfaction...
Two Dangerous Assumptions...
Getting Right Customer Feedback...
Eight Best Practices of Successful Companies...
Exceeding Customer Expectations...
Giving More for Less...
The Best Technique to Win the Customer Over...
Marketing Strategy at Different Company Growth Stages...
Understanding Risks Perceived by Customers...
Apply 80/20 Principle...
"When" Is a New "What"...
Learning from Successes and Failures...
Two Main Ways to Grow Revenue...
Customer Intimacy...
Customer Satisfaction vs. Customer Intimacy...
Customer Partnership...
Listening to Your Customer...
The Five Objectives of Six Sigma...
Success Story Nike...
Case in Point Dell Computer Corporation...
Case in Point Wall-Mart...
Case in Point
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Bibliography:
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