Customer Satisfaction Essay

638 Words3 Pages
ABSTRACT Customer satisfaction is worthless and Customer loyalty is priceless Our ‘customer satisfaction’ scores are high! We all say that we love our customers and always do the best we can for them. It’s exactly why the ‘satisfaction’ mindset is a lie and why customer loyalty is what matters to long-term business success. Satisfaction is truly worthless as your business needs loyal, faithful, and referral-generating customers. Customer loyalty is determined by 3 factors: 1) Relationship strength. 2) Perceived alternatives. 3) Critical episodes. The relationship can terminate if: the customer moves away from the company's service area, the customer no longer has a need for the company's products or services, more suitable alternative providers become available, the relationship strength has weakened, the company handles a critical episode poorly and unexplainable change of price of the service provided. Long term customers tend to be less inclined to switch and also tend to be fewer prices sensitive. Long term customers may initiate free word of mouth promotions and referrals. Long term customers are more likely to purchase ancillary products and high-margin supplemental products. Long term customers tend to be satisfied with their relationship with the company and are less likely to switch to competitors, making market entry or competitors' market share gains difficult. Regular customers tend to be less expensive to service because they are familiar with the processes involved, require less "education," and are consistent in their order placement. The relationship and customer loyalty is always being a profitable deal. Striving to maintain the loyalty of unprofitable customers is not a viable business deal. That is why it is important for marketers to assess the profitability of each of its customers and

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