There are two measurements that can significantly help in the management of your company's customer relationships, and they are; customer satisfaction and customer loyalty.
Too often, companies focus only on customer satisfaction to measure their customer service levels. This idea of measurement is flawed for many reasons, and one in particular is that it doesn't allow for actionable expectations. A positive actionable expectation would be some sort of purchase or recommendation of your company or product. Where a negative actionable expectation would be never coming back or telling others about their negative or mediocre experience with your firm.
In order to predict the behavior of your customers, you might try items such as the customer satisfaction survey, which are not really of much help. These days, many companies give out a receipt or printed information, which urges customers to go online and fill out a survey, and they might have a chance to "win money." Unfortunately, many customers "think" they have to give a favorable survey in order to "win" anything, so the survey results are not accurate!
As a leader of your organization, you should not assume that high levels of satisfaction translate into customer loyalty. Studies find that customer satisfaction ratings are linked to your customer's perceptions of your products or services. When a customer or client gets what they expected they are satisfied, for the most part. If you were grading the satisfaction on an index, you would probably receive a “C” on a report card.
What you should be looking for is an “A” grade or rating! A’s always equate to loyal customers. An "A" implies that customers got more than expected and the customer's expectations were exceeded in some way.
You need to be focused on what is truly important to your customers. Success is when you are giving a better experience than what your competitors are giving, and you are also exceeding the expectations of your customers.
When looking for new and different ways to build a strong customer retention, which type of measurement, does your organization use?
In today's economic climate most business leaders are focused on the bottom line. They want to save money, and they sometimes shortchange themselves by letting customer care dwindle. With that in mind, one great way to increase profitability is to increase customer retention. Keep in mind that the cost of acquiring a new customer is very expensive. Every year, businesses spend a great deal of money focusing on generating leads for finding new customers. The smart way is to refocus on your existing customers with a focus on retention as well as increasing services and products to your existing base of customers!
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Customer Satisfaction versus Customer Loyalty by Gizoom