Improving Customer Satisfaction, Loyalty, and Profit: An Integrated Measurement and Management System

Improving Customer Satisfaction, Loyalty, and Profit: An Integrated Measurement and Management System

Improving Customer Satisfaction, Loyalty, and Profit: An Integrated Measurement and Management System

Improving Customer Satisfaction, Loyalty, and Profit: An Integrated Measurement and Management System

Synopsis

Most companies understand that customer satisfaction and loyalty are essential to their success. But few companies know how to link their customer's needs with their organization's processes to create the best customer experience possible. Instead, they erect walls between their customer service department and their other organizational functions. Improving Customer Satisfaction, Loyalty, and Profit shows managers how to break down these walls, find out what their customers want, and use that information to produce the kinds of products and services that will keep them coming back. Michael Johnson and Anders Gustafsson have been instrumental in the development of customer satisfaction indexes in the U.S. and Europe. Here they team up to introduce a five-stage process that establishes crucial connections between a company's marketing, sales, product development, and customer service departments in order to deliver both top-quality products and a high-level customer experience. The process begins with measurement. Johnson and Gustafsson walk readers through the steps necessary to determine a customer measurement strategy, observe and communicate with customers, create formal customer surveys, and process and interpret the survey data. Then they show readers how to use that data to build a cohesive plan for quality improvement and ongoing customer management. By helping mid-level managers assemble specific estimates of how increased quality and customer loyalty will impact the bottom line, their process allows upper-level managers to allocate the resources necessary to build a truly customer-oriented company. And by cementing the links between products, patrons, and profits, their book highlights the core competencies companies need to create both happy customers and the organizational know-how necessary to keep them happy.

Excerpt

Over the past two decades, many companies have moved sequentially from focusing on quality to focusing on customer satisfaction, and then on loyalty, and then on relationship management as the panacea of the day. These are all important issues, but it is an error to try to address them independently, without regard to their place in a system. They actually form a chain of causes and effects that build on one another and cannot be treated or managed successfully on their own.

Our purpose in writing this book is to help you establish more explicit linkages from quality to customer satisfaction to loyalty, and ultimately to bottom-line financial performance. Future approaches to customer measurement and management cannot be based on simple arguments—it's no longer enough to assert that “quality is free” or that it is less expensive to satisfy and keep customers than to constantly replace them. Upper managers and executives need specific estimates of the payoffs they should expect from increasing quality, satisfaction, and loyalty in . . .

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