Customer Satisfaction Measure

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A Customer Satisfaction Measure is a organizational performance measure that characterizes the distribution of satisfied customers and unsatisfied customers.



  • (Wikipedia, 2017) ⇒ Retrieved:2017-11-2.
    • "Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty." [1]

      "Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is twofold:"

      1. "Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company's goods and services."
      2. "Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the extremes."
    • On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become return customers and might even evangelize for the firm. (A second important metric related to satisfaction is willingness to recommend. This metric is defined as "The percentage of surveyed customers who indicate that they would recommend a brand to friends." When a customer is satisfied with a product, he or she might recommend it to friends, relatives and colleagues. This can be a powerful marketing advantage.) "Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by making negative comments about it to prospective customers. Willingness to recommend is a key metric relating to customer satisfaction."
  1. Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. .


    • QUOTE:
      • The Good
        • CSAT surveys are relatively cheap and easy to implement. The quantitative data they provide is easy to understand and can be used to quickly identify thends and possible solutions.
        • CSAT scores are easily benchmarked. The American Customer Satisfaction Index provides on-line stats dating back to 1995, which can be used to compare your organization’s scores with competitors industry wide.
        • Customers feel respected when asked to offer their opinions. The opportunity to provide feedback – even if negative – can itself be a means of improving customer relations.
      • The Bad:
        • Satisfaction is a subjective concept, and the word “satisfied” means different things to different people. To some, it might mean that their experience was average or okay. To others, it might mean that every aspect of their experience was ideal or perfect.
        • Satisfaction occupies only a small space in the vast spectrum of emotions one might feel. The ability to measure a customer’s other emotions, both positive and negative, is thus crucial to deducing true satisfaction.
        • Customers in the “neutral” and “dissatisfied” categories often don’t fill out surveys, making the potential for skewed results high.