Thursday, October 1, 2009

Customer Satisfaction and Profits

For many years the American Customer Satisfaction Index (ACSI) has been used as input for a model developed by the University of Michigan's Ross School of Business. One of the interesting findings from the model is that there is a high positive correlation between the ASCI index and the market performance of individual company's stock. The conclusion is that consistently meeting or exceeding customer expectations for product performance and service drives profits because of strengthened loyalty. This is not a new idea, but it is interesting to see it actually statistically proven.

Are you measuring and tracking customer satisfaction? You may think your customers are all very happy, and will remain loyal, but perception is not always reality. If you do not have a system in place to formally track and trend customer satisfaction, then you are missing opportunities.

Here is a short list of benefits:

  • Identification and importance-ranking of the issues that lead to customer defection
  • Ability to measure progress on initiatives put in place
  • Greater understanding of needs by key customer segment
  • Capturing specific and actionable feedback
  • Getting more candid input through a third-party
  • Learning how to capture more of a customer's requirements

Bottom line: Ask for feedback.  Listen.  Be prepared to take action. Repeat.

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November 5. 2009 04:10

Perception IS Reality......

It matters what the consumer thinks, not what the company "thinks" he or she thinks....

Measuring and tracking attitudes over time and listening to your customer is the key to knowing when perceptions change.


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