an essay about customer satisfaction

10 Ways to Boost Customer Satisfaction

by G. Tomas M. Hult and Forrest V. Morgeson

Summary .   

Customer satisfaction is at its lowest point in the past two decades. Companies must focus on 10 areas of the customer experience to improve satisfaction without sacrificing revenue. The authors base their findings on research at the ACSI — analyzing millions of customer data points — and research that we conducted for The Reign of the Customer : Customer-Centric Approaches to Improving Customer Satisfaction. For three decades, the ACSI has been a leading satisfaction index (cause-and-effect metric) connected to the quality of brands sold by companies with significant market share in the United States.

Despite all the effort and money poured into CX tools by companies, customer satisfaction continues to decline . In the United States, it is now at its lowest level in nearly two decades, per data from the American Customer Satisfaction Index (ACSI). Consumer sentiment is also at its lowest in more than two decades. This negative dynamic in the customer-centric ecosystem in which we now live creates the challenge of figuring out what is going wrong and what companies can do to fix it.

Partner Center

ESSAY SAUCE

FOR STUDENTS : ALL THE INGREDIENTS OF A GOOD ESSAY

Essay: The Importance of Customer Satisfaction: Theories & Implications

Essay details and download:.

• Subject area(s): Business essays
• Reading time: 15 minutes
• Price: Free download
• Published: 26 October 2015*
• Last Modified: 1 August 2024
• File format: Text
• Words: 4,325 (approx)
• Number of pages: 18 (approx)

Text preview of this essay:

This page of the essay has 4,325 words.

Introduction

Customer satisfaction is one of the most important key factors for customer’s future purchase (Mittal & Kamakura, 2001). Those clients that have been satisfied by consuming or buying any goods or services will most likely inform others about their great encounters likewise those dissatisfied customers will without any doubt communicate about their bad experience of the products or services. This is another reason why a company should take into consideration the level of customer satisfaction, as it defines the image of the products/services and the company that the customers have in their mind. By delivering goods and services that meet the needs and wants of consumers, they will have a positive image and will talk well about the company, but in case a company does not meet the needs or wants of the customers, it will create a negative image for the company in the mind of the customers and thus discourage the customer from buying products or services from that particular company.

Evaluative Conclusion of Customer Satisfaction

Moreover, according to Gundersen, Heide, and Olsson, customer satisfaction is regularly defined as an evaluative conclusion made by a customer after consuming a particular product or service (Gundersen, Heide, and Olsson, 1996). That is, in regards to Gundersen, Heide, and Olsson’s definition of customer satisfaction, the customer is able to conclude whether he/she is satisfied or not with the product or service only after consuming it. On the other hand, according to Oliver, consumer satisfaction is the process that compares the expectations of customers before buying any products or services to the process where the customer is consuming the product or service and after the consumption of the product or service (Oliver, 1980). In other words, according to Oliver, consumer satisfaction is the course where they compare what the buyer has in his mind about any products or services before buying it to what the buyer feels and has in his mind while consuming and after consuming any products or services. While analyzing the definition of Gundersen, Heide, and Olsson to that of Oliver, we can see that the definition of Oliver is more detailed compared to that of Gundersen, Heide, and Olsson. The definition of Oliver takes into consideration the expectations of the consumer about a product or service before he even purchases it and compares it to what the buyer feels while consuming and after consuming the product or service. Therefore using the theory of Oliver, it will be easier for a company to have a better idea about what types of products or services customers want to consume and what consumers expect while consuming and after consuming any products or services.

Expectancy-Disconfirmation Theory

Expanding on the importance of customer satisfaction, it is essential to recognize the broader implications it has on customer loyalty and retention. The Expectancy-Disconfirmation Theory by Richard L. Oliver (1977) further elaborates on the concept of customer satisfaction. According to this theory, satisfaction is a result of the comparison between customers’ expectations and their actual experiences. If the product or service exceeds expectations, positive disconfirmation occurs, leading to higher satisfaction. Conversely, if the product or service falls short, negative disconfirmation leads to dissatisfaction. This theory underscores the dynamic nature of customer satisfaction, emphasizing that businesses must continually strive to exceed customer expectations to maintain high levels of satisfaction.

Perceived Value and Customer Satisfaction

Customer satisfaction is also deeply intertwined with the concept of perceived value, as discussed by Zeithaml (1988). Perceived value is the customer’s evaluation of the benefits received from a product or service relative to the costs incurred. A higher perceived value can enhance customer satisfaction, as customers feel they are getting more worth from their purchase. Therefore, businesses should focus on enhancing the perceived value by improving product quality, offering competitive pricing, and delivering exceptional customer service.

To delve deeper into the notion of perceived value, it’s essential to consider the different dimensions that contribute to it. According to Sweeney and Soutar (2001), perceived value can be divided into four key dimensions: emotional value, social value, functional value (price/value for money), and functional value (performance/quality). Emotional value pertains to the feelings or affective states that a product or service generates. Social value is derived from the product’s ability to enhance social self-concept. Functional value (price/value for money) is the utility derived from the product due to the reduction of its perceived short-term and long-term costs. Lastly, functional value (performance/quality) relates to the perceived quality and expected performance of the product or service.

The multidimensional nature of perceived value indicates that businesses must adopt a holistic approach when seeking to enhance it. This involves not just focusing on the product or service itself but also considering how it impacts the customer’s emotional and social experiences. For instance, luxury brands often leverage emotional and social value by associating their products with prestige and status, thereby justifying higher prices and creating strong customer loyalty.

Furthermore, the role of perceived value in influencing repurchase intentions and customer loyalty has been well-documented. According to Dodds, Monroe, and Grewal (1991), perceived value significantly affects consumers’ willingness to buy and their intentions to repurchase. When customers perceive that they have received good value, they are more likely to return and make future purchases. This relationship underscores the importance of delivering consistent value over time to build and maintain a loyal customer base.

SERVQUAL Model

In addition to these theories, the SERVQUAL model developed by Parasuraman, Zeithaml, and Berry (1988) provides a comprehensive framework for understanding customer satisfaction in the service industry. The SERVQUAL model identifies five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. By evaluating these dimensions, businesses can identify areas where they excel and areas needing improvement. For example, ensuring reliability in service delivery can significantly boost customer satisfaction, as customers value consistency and dependability.

The SERVQUAL model is rooted in the gap theory, which posits that service quality is a function of the differences between customer expectations and their perceptions of the service received. The model suggests that there are five gaps that can impact the delivery of high-quality service:

• Gap 1: Knowledge Gap – The difference between customer expectations and management’s perceptions of those expectations. This gap can be bridged through effective market research and customer feedback mechanisms.
• Gap 2: Policy Gap – The difference between management’s perceptions of customer expectations and the service quality specifications set by the company. This can be addressed by setting service standards that align with customer expectations.
• Gap 3: Delivery Gap – The difference between service quality specifications and the service actually delivered. Training and empowering employees can help in closing this gap.
• Gap 4: Communication Gap – The difference between the service delivered and what is communicated to customers. Honest and clear communication can help manage customer expectations accurately.
• Gap 5: Perception Gap – The difference between customer expectations and their perceptions of the service received. This is the gap that directly affects customer satisfaction and can be minimized by consistently delivering high-quality service.

Tangibles refer to the physical evidence of the service, including the appearance of physical facilities, equipment, personnel, and communication materials. In a highly competitive market, the physical environment where the service is delivered can significantly influence customer perceptions. For instance, clean and well-maintained facilities can enhance customer perceptions of quality. According to Bitner (1992), the physical surroundings and their impact on customer and employee behavior, known as the servicescape, are crucial for shaping service experiences.

Reliability

Reliability is the ability to perform the promised service dependably and accurately. It is considered one of the most critical dimensions of service quality, as it directly affects customer trust. When customers can rely on a company to deliver on its promises, it builds a foundation of trust that encourages repeat business. According to Rust and Oliver (1994), reliability is the most important dimension of service quality because it involves consistency of performance and dependability.

Responsiveness

Responsiveness refers to the willingness to help customers and provide prompt service. This dimension emphasizes the importance of timeliness in service delivery, including the speed of service and the promptness in addressing customer inquiries and complaints. As noted by Zeithaml, Parasuraman, and Berry (1990), responsiveness can be a critical factor in creating positive customer experiences, especially in service failures where quick recovery can turn a potentially negative experience into a positive one.

Assurance encompasses the knowledge and courtesy of employees and their ability to convey trust and confidence. This dimension is particularly important in services that involve high levels of risk and uncertainty, such as financial services or healthcare. Building assurance involves not only the technical competence of employees but also their interpersonal skills. Berry and Parasuraman (1991) suggest that assurance can be enhanced through continuous employee training and development programs.

Empathy is the provision of caring, individualized attention to customers. It reflects the degree to which the service provider understands and addresses the specific needs and preferences of customers. Empathy can be demonstrated through personalized services, attentive listening, and a genuine concern for customer well-being. According to Lovelock and Wirtz (2011), empathy is crucial for building emotional connections with customers, which can lead to increased loyalty and advocacy.

Practical Applications of SERVQUAL

The SERVQUAL model is widely used by businesses to conduct service quality audits and identify gaps in service delivery. By administering SERVQUAL surveys, companies can gather data on customer expectations and perceptions across the five dimensions. This data can then be analyzed to pinpoint specific areas of improvement and develop targeted strategies to enhance service quality. For example, if customers report low scores in responsiveness, the company can implement training programs to improve employee efficiency and promptness.

Moreover, the SERVQUAL model can be adapted to various industries and customized to fit the specific context of the business. For instance, in the hospitality industry , tangibles might include the ambiance of the hotel, while in the retail industry, they might refer to the cleanliness and organization of the store. This flexibility makes SERVQUAL a versatile tool for measuring and managing service quality across different sectors.

Theory of Planned Behavior

Furthermore, the Theory of Planned Behavior (Ajzen, 1991) offers insights into how customer satisfaction influences future purchase intentions. According to this theory, an individual’s intention to engage in a behavior (such as repurchasing a product) is influenced by their attitude towards the behavior, subjective norms, and perceived behavioral control. High customer satisfaction positively impacts customers’ attitudes towards repurchasing, strengthens their intention to buy again, and can also influence their perceived ease of doing so.

Expanding on this, the Theory of Planned Behavior (TPB) posits that behavior is directly influenced by behavioral intentions, which are shaped by three key factors: attitude toward the behavior, subjective norms, and perceived behavioral control. Attitude refers to the degree to which a person has a favorable or unfavorable evaluation of the behavior in question. In the context of customer satisfaction, a positive attitude towards the behavior of repurchasing a product or service can be significantly bolstered by previous satisfying experiences. When customers have positive attitudes because their expectations have been met or exceeded, they are more likely to form strong intentions to repurchase.

Subjective norms involve the perceived social pressure to perform or not perform a behavior. These norms can stem from the influence of family, friends, or societal trends. If influential people in a customer’s life advocate for or express satisfaction with a particular product or service, the customer is more likely to develop intentions to purchase based on these social cues. Positive word-of-mouth from other satisfied customers can thus amplify the subjective norms, reinforcing the intention to repurchase.

Perceived behavioral control refers to the perceived ease or difficulty of performing the behavior and is assumed to reflect past experiences and anticipated obstacles. In the context of customer satisfaction, if customers feel that repurchasing a product or service is straightforward and within their control, their intention to do so will be stronger. Factors such as user-friendly websites, accessible customer service, and smooth transaction processes can enhance perceived behavioral control, thereby strengthening purchase intentions.

Moreover, the TPB framework can be extended to understand how companies can influence these determinants to foster customer loyalty. For instance, marketing strategies can be designed to enhance positive attitudes by highlighting customer testimonials and success stories. Promotional campaigns can leverage social proof, showcasing the number of satisfied customers to strengthen subjective norms. Additionally, improving the overall customer experience by making purchasing processes easier can enhance perceived behavioral control.

Research has shown that the Theory of Planned Behavior can effectively predict a variety of consumer behaviors, including online shopping intentions, health-related purchases, and environmentally friendly product choices (Pavlou & Fygenson, 2006; Conner & Armitage, 1998). This versatility underscores the theory’s robustness in different contexts, suggesting that businesses across various sectors can benefit from applying TPB principles to understand and influence customer satisfaction and purchasing behavior.

Incorporating TPB into customer satisfaction strategies can also involve continuous monitoring and adapting to changes in customer attitudes, societal norms, and perceived control factors. For instance, companies can use surveys and feedback tools to gauge customer attitudes and perceptions regularly. By staying attuned to these factors, businesses can make proactive adjustments to their offerings and customer service practices to maintain high levels of satisfaction and ensure sustained customer loyalty.

Affective Events Theory

Moreover, it is crucial to acknowledge the role of emotional satisfaction, as posited by the Affective Events Theory (Weiss & Cropanzano, 1996). This theory suggests that emotional experiences significantly impact overall job satisfaction and behavior. Translating this to customer satisfaction, positive emotional experiences with a product or service can enhance overall satisfaction and loyalty. Businesses should, therefore, aim to create positive emotional interactions at every customer touchpoint.

The Affective Events Theory (AET) elaborates on how emotions are elicited by specific events, which then influence attitudes and behaviors. In the workplace, this theory explains how daily events can lead to emotional reactions that impact job performance and satisfaction. When applied to customer satisfaction, AET suggests that customers’ emotions are significantly influenced by their interactions with a product or service and the context in which these interactions occur.

For instance, a customer who receives exceptional service during a purchase, such as personalized attention or a seamless checkout process, is likely to experience positive emotions. These positive emotional reactions can lead to a higher overall satisfaction with the purchase and an increased likelihood of returning to the same business. Conversely, negative experiences, such as rude customer service or long wait times, can trigger negative emotions that detract from customer satisfaction and discourage repeat business.

Businesses can leverage AET by designing customer interactions that are likely to evoke positive emotional responses. This can involve training employees to be courteous and empathetic, ensuring that customer service is not only efficient but also emotionally engaging. Additionally, creating a pleasant and inviting atmosphere in physical stores or on online platforms can contribute to positive emotional experiences.

Furthermore, the consistency of emotional experiences plays a crucial role. Regularly positive interactions can build a strong emotional bond between the customer and the brand, leading to increased loyalty. This is particularly important in industries where competition is fierce, and customer retention is a key success factor. Companies that can consistently provide positive emotional experiences are more likely to develop a loyal customer base.

Moreover, AET highlights the importance of managing negative emotions effectively. Businesses should have robust mechanisms for handling complaints and resolving issues promptly. An effective resolution can mitigate negative emotions and, in some cases, turn a dissatisfied customer into a loyal one by demonstrating the company’s commitment to customer satisfaction.

In conclusion, the Affective Events Theory underscores the significant impact of emotions on customer satisfaction. By focusing on creating positive emotional experiences and effectively managing negative ones, businesses can enhance overall customer satisfaction and foster loyalty. This approach not only improves individual customer interactions but also contributes to a more positive brand image and long-term success.

Equity Theory

Another important theory related to customer satisfaction is the Equity Theory by Adams (1963), which suggests that customers assess fairness in their transactions. They compare the ratio of inputs (such as time, money, and effort) to outputs (benefits received) with those of others. If customers perceive an imbalance, where their inputs exceed outputs compared to others, they may feel dissatisfied. Ensuring fair treatment and equitable value propositions can, therefore, play a critical role in maintaining customer satisfaction.

Equity Theory is particularly relevant in service industries where customer interactions are frequent and diverse. For instance, customers comparing the value they receive from a service with what others receive can significantly influence their satisfaction levels. Businesses can leverage this theory by ensuring transparency in their pricing, offering consistent quality, and providing personalized services that meet or exceed customer expectations. By doing so, they can minimize feelings of inequity and enhance overall satisfaction. Research by Bolton and Lemon (1999) indicates that perceived fairness in service recovery can also mitigate negative experiences, turning dissatisfied customers into loyal ones through effective resolution strategies.

Voice of the Customer Methodology

The importance of customer feedback in measuring and improving customer satisfaction cannot be overstated. The Voice of the Customer (VoC) methodology involves collecting and analyzing customer feedback to understand their needs, preferences, and perceptions. This approach aligns with the principles of Total Quality Management (TQM), which emphasizes continuous improvement based on customer feedback. By systematically gathering and acting on customer feedback, businesses can make informed decisions to enhance their products, services, and overall customer experience.

VoC methodologies can be implemented through various channels such as surveys, focus groups, social media monitoring, and direct customer interactions. According to Hayes (2008), integrating VoC data into strategic decision-making processes helps companies identify pain points and areas for improvement. Moreover, advanced analytical tools can process large volumes of feedback to uncover deep insights into customer behavior and preferences. This proactive approach enables businesses to anticipate customer needs and adapt swiftly, fostering a customer-centric culture that drives loyalty and satisfaction.

Customer Delight

Additionally, the concept of Customer Delight, introduced by Schneider and Bowen (1999), extends beyond mere satisfaction. It involves exceeding customer expectations to the extent that customers experience a sense of delight. Customer delight can lead to stronger emotional connections, higher loyalty, and increased positive word-of-mouth. Businesses aiming for customer delight must innovate and deliver exceptional value that surprises and impresses customers.

Creating customer delight often requires a deep understanding of customer desires and expectations. According to Kumar, Olshavsky, and King (2001), delightful experiences are those that are unexpected and uniquely fulfilling. Businesses can achieve this by offering personalized experiences, exclusive benefits, and exceptional service quality. The emotional impact of delight can significantly enhance customer loyalty, as delighted customers are more likely to share their positive experiences with others, thereby amplifying the company’s reputation and attracting new customers.

Brand Loyalty Model

The relationship between customer satisfaction and brand loyalty is also critical. The Brand Loyalty Model by Jacoby and Chestnut (1978) suggests that satisfied customers are more likely to develop a loyal attitude towards the brand, resulting in repeat purchases and advocacy. This model highlights the long-term benefits of investing in customer satisfaction initiatives, as loyal customers contribute to sustained revenue growth and market share.

Brand loyalty encompasses both behavioral loyalty (repeat purchases) and attitudinal loyalty (positive attitudes and preferences towards the brand). Studies by Dick and Basu (1994) emphasize that emotional attachment to a brand, developed through consistent positive experiences, enhances both types of loyalty. Companies can cultivate brand loyalty by maintaining high quality, delivering consistent value, and engaging customers through loyalty programs and personalized communication, thus reinforcing the customers’ commitment to the brand.

Furthermore, the Kano Model, developed by Noriaki Kano in the 1980s, categorizes customer preferences into basic needs, performance needs, and excitement needs. According to this model, fulfilling basic needs prevents dissatisfaction, meeting performance needs increases satisfaction, and addressing excitement needs creates delight. Businesses can use the Kano Model to prioritize features and improvements that have the most significant impact on customer satisfaction.

The Kano Model helps businesses understand how different attributes of a product or service influence customer satisfaction. Basic needs are fundamental expectations that, if unmet, lead to dissatisfaction. Performance needs are those that customers explicitly desire and can be measured in terms of quality and functionality. Excitement needs, often unspoken, provide exceptional value and surprise customers, leading to delight. By mapping customer requirements onto these categories, companies can allocate resources effectively to enhance satisfaction and create memorable experiences (Matzler & Hinterhuber, 1998).

Role of Technology in Customer Satisfaction

In the digital age , the role of technology in enhancing customer satisfaction cannot be overlooked. Customer Relationship Management (CRM) systems enable businesses to collect and analyze customer data, track interactions, and personalize communications. The use of Artificial Intelligence (AI) and Machine Learning (ML) in CRM systems can further enhance customer satisfaction by predicting customer needs, providing timely recommendations, and automating routine tasks.

Technological advancements have transformed customer service delivery. AI-powered chatbots, for example, offer 24/7 support, handling routine inquiries efficiently and freeing human agents to manage complex issues. Additionally, data analytics enables businesses to gain insights into customer behavior, preferences, and feedback in real time. According to Salesforce (2019), personalized customer interactions driven by AI can lead to significant improvements in customer satisfaction and loyalty, as customers appreciate timely, relevant, and tailored communications.

Social Exchange Theory

Moreover, the Social Exchange Theory by Blau (1964) suggests that relationships are built on reciprocal exchanges of value. In the context of customer satisfaction, businesses that consistently deliver value and positive experiences are likely to receive customer loyalty and positive word-of-mouth in return. This theory reinforces the importance of creating mutually beneficial relationships with customers.

Social Exchange Theory posits that trust and commitment are crucial elements in fostering long-term relationships. Customers evaluate their interactions with businesses based on the perceived benefits and costs of the relationship. By consistently providing high-quality products, exceptional service, and fair value, companies can strengthen customer trust and loyalty. Cropanzano and Mitchell (2005) highlight that perceived organizational support, where customers feel valued and appreciated, can further enhance relational outcomes, leading to increased satisfaction and advocacy.

In conclusion, customer satisfaction is a multifaceted concept influenced by various factors and theories. From expectancy-disconfirmation and perceived value to emotional satisfaction and equity, understanding the diverse aspects of customer satisfaction can help businesses develop effective strategies to enhance it. By leveraging academic theories and practical frameworks, companies can create positive customer experiences, foster loyalty, and achieve long-term success in a competitive marketplace. Through continuous improvement, customer feedback integration, and innovative approaches, businesses can not only meet but exceed customer expectations, driving satisfaction and loyalty to new heights.

• Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes , 50(2), 179-211.
• Berry, L. L., & Parasuraman, A. (1991). Marketing Services: Competing through Quality. Free Press .
• Bitner, M. J. (1992). Servicescapes: The impact of physical surroundings on customers and employees. Journal of Marketing , 56(2), 57-71.
• Bolton, R. N., & Lemon, K. N. (1999). A dynamic model of customers’ usage of services: Usage as an antecedent and consequence of satisfaction. Journal of Marketing Research , 36(2), 171-186.
• Conner, M., & Armitage, C. J. (1998). Extending the theory of planned behavior: A review and avenues for further research. Journal of Applied Social Psychology , 28(15), 1429-1464.
• Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management , 31(6), 874-900.
• Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science , 22(2), 99-113.
• Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers’ product evaluations. Journal of Marketing Research , 28(3), 307-319.
• Equity Theory. (n.d.). Retrieved from Newcastle University . Accessed 26 October 2015.
• Expectation Confirmation Theory. (n.d.). Retrieved from Newcastle University . Accessed 26 October 2015.
• Gundersen, M. G., Heide, M., & Olsson, U. H. (1996). Hotel guest satisfaction among business travelers. Cornell Hotel and Restaurant Administration Quarterly , 37(2), 72–81. https://doi.org/10.1177/001088049603700222 
• Hayes, B. E. (2008). Measuring customer satisfaction and loyalty . ASQ Quality Press.
• Jacoby, J. and Chestnut, R.W. (1978) Brand Loyalty Measurement and Management. John Wiley and Sons, New York.
• Kano Model. (n.d.). Retrieved from Wikipedia . Accessed 26 October 2015.
• Kumar, A., Olshavsky, R. W., & King, M. F. (2001). Exploring alternative antecedents of customer delight. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior , 14, 14-26.
• Lovelock, C., & Wirtz, J. (2011). Services Marketing: People, Technology, Strategy. Prentice Hall .
• Matzler, K., & Hinterhuber, H. H. (1998). How to make product development projects more successful by integrating Kano’s model of customer satisfaction into quality function deployment. Technovation , 18(1), 25-38.
• Mittal, V., & Kamakura, W. A. (2001). Satisfaction, repurchase intent, and repurchase behavior: Investigating the moderating effect of customer characteristics. Journal of Marketing Research , 38(1), 131-142. Link
• Oliver, R. L. (1980). A cognitive model for the antecedents and consequences of satisfaction. Journal of Marketing Research , 17(4), 460-469.
• Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing , 64(1), 12-40. Retrieved from ResearchGate . Accessed 26 October 2015.
• Pavlou, P. A., & Fygenson, M. (2006). Understanding and predicting electronic commerce adoption: An extension of the theory of planned behavior. MIS Quarterly , 30(1), 115-143.
• Rust, R.T. and Oliver, R.L. (1994) Service Quality: Insights and Managerial Implications from the Frontier. In: Rust, R.T. and Oliver, R.L., Eds., Service Quality: New Directions in Theory and Practice, Sage Publications, Thousand Oaks, 1-19. http://dx.doi.org/10.4135/9781452229102.n1
• Salesforce. (2019). State of the connected customer . Salesforce Research.
• Schneider, B., & Bowen, D. E. (1999). Understanding customer delight and outrage. MIT Sloan Management Review , 41(1), 35-45. Retrieved from MIT Sloan . Accessed 26 October 2015.
• Social Exchange Theory. (n.d.). Retrieved from ScienceDirect . Accessed 26 October 2015.
• Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing , 77(2), 203-220.
• Voice of Customer. (n.d.). Retrieved from Qualtrics . Accessed 26 October 2015.
• Weiss, H. M., & Cropanzano, R. (1996). Affective events theory: A theoretical discussion of the structure, causes, and consequences of affective experiences at work. Research in Organizational Behavior , 18, 1-74. Retrieved from ResearchGate . Accessed 26 October 2015.
• Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing , 52(3), 2-22.
• Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1990). Delivering Quality Service: Balancing Customer Perceptions and Expectations. Free Press .

About this essay:

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, The Importance of Customer Satisfaction: Theories & Implications . Available from:<https://www.essaysauce.com/business-essays/essay-customer-satisfaction/> [Accessed 05-09-24].

These Business essays have been submitted to us by students in order to help you with your studies.

* This essay may have been previously published on EssaySauce.com and/or Essay.uk.com at an earlier date than indicated.

Essay Categories:

• Accounting essays
• Architecture essays
• Business essays
• Computer science essays
• Criminology essays
• Economics essays
• Education essays
• Engineering essays
• English language essays
• Environmental studies essays
• Essay examples
• Finance essays
• Geography essays
• Health essays
• History essays
• Hospitality and tourism essays
• Human rights essays
• Information technology essays
• International relations
• Leadership essays
• Linguistics essays
• Literature essays
• Management essays
• Marketing essays
• Mathematics essays
• Media essays
• Medicine essays
• Military essays
• Miscellaneous essays
• Music Essays
• Nursing essays
• Philosophy essays
• Photography and arts essays
• Politics essays
• Project management essays
• Psychology essays
• Religious studies and theology essays
• Sample essays
• Science essays
• Social work essays
• Sociology essays
• Sports essays
• Types of essay
• Uncategorised
• Zoology essays

Why Customer Satisfaction Should Be a Top Priority for Your Business

Table of Contents

Are you putting enough focus on customer satisfaction in your business? If not, it is time to do so! Besides, you already know this – it’s all about the customer.

Customer satisfaction should be a top priority of every business because happy customers are more likely to stick around and recommend your business to others . Satisfied customers are also more likely to return after making a big purchase and become loyal supporters of your brand .

Are there really sweeter words to the ears of entrepreneurs? We don’t think so.

What many business owners do not realize, though, is that there are a few specific things they continuously need to keep their customers satisfied.

In this blog post, we will list all the reasons ‌you should invest in customer satisfaction and suggest some ways to improve it, to help your business thrive!

So read on–your customers will thank you later.

Table of contents

• 1 The Importance of Customer Satisfaction
• 2 The Negative Effects of Poor Customer Satisfaction
• 3 How to Improve Customer Satisfaction
• 4 Measuring the Success of Your Efforts to Improve Customer Satisfaction

The Importance of Customer Satisfaction

Customer satisfaction (CSAT) is a way of measuring how content and satisfied your customers are with your company’s product and services. It is used to help you understand how well your customer experience meets your customers’ expectations , and how potential buyers perceive your product.

As one of the most important metrics and key performance indicators – KPIs , customer satisfaction comes in handy, especially when you want to measure the effectiveness of your wider customer training initiatives.

Apart from bringing big returns and profits for your business , ‌high customer satisfaction is important for a multitude of additional reasons. According to research by Zendesk , customer satisfaction leads to greater customer retention, increased lifetime customer value, and stronger brand reputation.

In a nutshell, these are the key benefits of customer satisfaction:

• Reduced marketing costs
• Advantage over competitors
• Decreased customer churn
• Increased customer loyalty
• Brand reputation boost
• Healthy sales revenue
• Enhanced customer retention
• New customer acquisition

Customer satisfaction relies on customer experience (CX) and is important because all the aforementioned points are great indicators of business growth . According to Gartner’s 2017 report , two out of three marketers say their companies compete mostly based on CX and 81 percent of them believe ‌it is the main competitive factor of their industry.

Another research led by Bain & Company confirms that it is less costly to keep an existing customer happy than to gain a new customer. This means that building loyal customer relationships will generate higher ROI as repeat customers will keep buying from a company‌‌. ROI may vary among different industries, but for the financial services, a 5% increase in customer retention produces more than a 25% increase in profit. Imagine what it could do for your business!

Therefore, it is essential to ensure that customers who are already engaged continue to be happy every step of the way throughout the entire customer journey. Keeping customer satisfaction high allows you to predict your business revenue and growth while helping you create a loyal customer base that keeps coming back for more.

The Negative Effects of Poor Customer Satisfaction

Unhappy customers will almost certainly have something bad to say about your product or service. If they do not get what they need on time, are not treated right, or are simply not satisfied with the quality of your product or the support you offer, they are going to put you on their blacklist and even start telling others to do the same.

As there are many similar products out there nowadays, many people rely heavily on reviews to make an informed decision. Online reviews can have a big impact on your sales, especially when they are shared on social media. Positive reviews have the power to get a customer to convert, but a negative review will prevent many from doing so.

PwC’s Future of Customer Experience survey showed that 59 percent of customers will stop interacting with the company after several bad experiences, and 17 percent will ‌do the same after just one bad experience. Bad customer service can also cost a business a billion of dollars a year as a result of lost revenue and lower profits. Such numbers show that customers may leave a company forever because of poor customer satisfaction.

Luckily, though, there are strategies that help you move past this.

Despite of all the negative impacts of low customer satisfaction, it can ‌reveal some profound information about your business. Low levels of customer satisfaction offer the opportunity to identify your customers’ needs and give your customer success team access to customer insights that help you improve the entire customer experience journey.

How to Improve Customer Satisfaction

Just because technology moves fast and customer demands and priorities change in an instant, it is a considerable risk to assume you already know what your customers want. Yes – you might have a general idea; if you want to be 100 percent sure, you must check in with them regularly .

The best way to do this is by interacting with them, asking and getting their feedback , and working your way up to building their trust in you by offering them exceptional customer service.

Here are some ways how to do this effectively:

1 Conduct customer satisfaction surveys

Assuming that you already know your customers, you need to learn what it takes to satisfy them . An excellent way to do this is by encouraging them to participate in a customer satisfaction survey after interacting with your company.

These surveys are easy to understand and analyze, but they also save time and help you identify problem areas. To make the survey process even more convenient for your customers, you can leverage modern technology like any of these best QR code generators to create scannable codes that lead directly to the survey. The surveys can take different formats depending on which customer touchpoint you want to explore, measuring the customer satisfaction score – CSAT .

For example, it could be a customer service survey after interacting with your support team, a product satisfaction survey after they have used your product, or even before purchasing your product.

Customer satisfaction surveys are typically a list of questions that request customers to rate their service experience either on a simple 5 or 10-point scale, or express how they felt about it with pre-defined responses, from ‘Highly Dissatisfied’ to ‘Highly Satisfied’.

💡 You can create any type of survey using LearnWorlds’ powerful multi-purpose form builder ! Use it to capture leads easily, learn more about your customers, or gather feedback.

Your professional looking Academy in a few clicks

2 use net promoter score – nps surveys.

Like customer satisfaction surveys, net promoter score surveys can measure customer satisfaction , but they investigate a more long-term perspective, focusing on overall brand satisfaction and customer loyalty.

Whereas CSAT surveys ask specific questions about customer interactions with your company, NPS surveys will determine if customers would refer your products or services to their friends and family, taking into consideration their overall experience. If they have a positive experience, you can measure the likelihood of recommending your brand to others.

This can help you classify your customers into specific categories – e.g., promoters (those who rated a likelihood of 9 or 10), passives (those who rated a possibility of 7 or 8), or detractors (a probability of 6 or below) and then take the appropriate measures to engage them more.

3 Invest heavily in your support team

No matter how unique your product is, business success and growth largely depend on how you treat your customers . Since your customer support members are at the frontline of your company, they are the ones who talk regularly with your customers and need to be good customer service providers.

As long as your support team eliminates poor customer service practices and strives to deliver fast responses , you have nothing to fear. So train your customer support team effectively and get them accustomed to your customers’ most essential needs. Create canned responses to the most common inquiries if you must, but make sure your customer support employees will go the extra mile to get customers what they need as quickly as possible. Trust us – it works!

4 Reward customer loyalty

Not all your customers are the same. In fact, they are different in the rate they interact with you and at the level of engagement with your organization. To encourage them to stick around, love and trust your brand, ‌you can offer incentives to your top ambassadors .

Here are some ideas:

• Celebrate and share their achievements
• Invite them to a special event
• Offer them a referral bonus
• Give them a discount
• Provide them early access to your product (e.g. your course)

Rewarding your customers’ loyalty shows that, as a company, you appreciate their valuable contribution. It also shows that you like to keep things personal and that you prefer to engage with each customer at an individual level.

5 Act on customer feedback promptly

Whenever you get a review or a complaint, try to react in real-time or as soon as possible, utilizing your enterprise help desk for efficient resolution.

To avoid churn, take your customers’ feedback seriously, use it to improve your business processes, and never ignore their complaints. Also, ‌‌ address negative customer feedback immediately and develop alternative suggestions or compensation that suit their situation.

Upset and disappointed customers are more likely to share their opinions , which often backfires, as it helps build a bad reputation through word-of-mouth.

So challenge your existing perceptions and keep track of customer interests every step of the way. You will gain a better understanding of the value they expect from you and come up with actionable solutions to their problems.

6 Offer omnichannel support

Customer feedback is the most valuable piece of information you can get your hands on as an entrepreneur, so ‌you need to keep that communication channel with them open at all times.

Paying attention to your customers and hearing what they have to say always comes first, which means you want your support representatives to follow up on them through multiple channels, including social media, phone calls (using mobile or local phone service ), and live web chats . Making use of a VoIP software solution is sensible if you want to get the best in terms of call quality, convenience, cost-effectiveness and cross-device compatibility for customer support purposes.

Doing so should help you resolve queries quickly, meet customer expectations, providing them with quick tips and directions while avoiding giving out repetitive information.

7 Build an integrated community

With a dedicated online community in place, you get to improve the customer journey and gradually build more trust in your brand. It will also make it easier for them to network with others, feel part of a group and get more value and opportunities to use your product effectively. In such a friendly environment, you are more likely to foster and maintain greater brand loyalty.

Meet customers where they are and create a special online space where they can connect and interact with each other often. Enable them to exchange information, views, ideas, and opinions on things that matter to them. Encourage conversations, answer their questions or let existing customers guide the newbies around your website or give a tour of your product.

8 Educate your customers

Start creating a customer-centric culture and focus on providing customers with your best and most valuable resources for free. Do not just offer training and additional support to your customers; be proactive and give specific directions and advice before they even ask for it.

If you do not yet have a customer education program , this is the best time to do so. As part of a broader and collective customer training effort, it will help you increase the customers’ level of interaction with your product. On top of this, you will help them learn how to use it to its maximum potential and allow them to integrate it better into their everyday lives.

You can also create a customer portal by using customer service software, such as any of these Zendesk alternatives . A customer portal can help answer queries, reduce tickets, and educate customers on the use of your product, but would not replace a customer-faced academy with dedicated training.

This way, customers will get to know how to search for answers on their own and resolve their issues quickly, leaving them feeling as satisfied and connected with your brand as never before.

Measuring the Success of Your Efforts to Improve Customer Satisfaction

At any point, measuring the level of customer satisfaction towards your company is very easy. Being consistent and having a sustainable customer satisfaction measurement process to check if your customers are happy with your product and service is the key to success.

The key metrics to monitor for customer satisfaction are:

Customer satisfaction score (CSAT):

The customer satisfaction score metric uses questions related to specific interactions of customers to measure whether your product meets their expectations.

To calculate the CSAT score, simply add the sum of the survey responses using a 5-point scale satisfaction rating question – ‘Satisfied’ to ‘Very Satisfied.’ The higher the number is, the happier your customers are.

Customer satisfaction index (CSI):

The customer satisfaction index metric shows the overall customer satisfaction with a company regarding product quality, customer service, price, and more. It is like the customer satisfaction score, but this combines different attributes and helps determine why customers are satisfied or dissatisfied.

CSI = (attribute 1 + attribute 2 + attribute 3) / 3

For example:

Attribute 1 – Customer care = 65 Attribute 2 – User experience = 50 Attribute 3 – Price = 60

CSI = (65 + 50 + 60) / 3 Then the CSI is 58.33.

Net Promoter Score (NPS):

The net promoter score is an index that ranges from (-100) to (+100) and reflects the willingness of customers to recommend your product or services to others. With NPS, you can gather quantitative data that you can compare against your industry’s benchmark.

To calculate NPS, ask your customers to answer a survey question on the likelihood of recommending your product and rate it using a 10-point scale.

Customer effort score (CES):

The customer effort score is a metric that combines CSAT and NP; it calculates how much effort customers have put into specific interactions with your company.

To measure it, count the average of all the answers you collected from respondents. When the number is low, it means that customers are putting too much effort into interacting with you.

💁 Even though customer lifetime value, customer acquisition, and customer churn are more related to sales and marketing, they can also help you get a more accurate view of overall satisfaction. Learn more about these KPIs here .

What’s Next: Make Customers Your Number One Priority

Even more so today, there is a major focus on customer satisfaction with a growing interest in offering the best service to existing customers.

A Gartner’s 2021 report shows that 64 percent of customer service and support leaders say growing the business is the most critical priority in 2022. This shows a shift towards adding value and growing existing clients having customer retention as the main goal.

How does this affect you?

Regardless of your industry, achieving high customer satisfaction is a must. After all, your customers are the people who help to keep your business alive.

Brands that have high customer satisfaction levels have a defensible advantage over their competitors. Since it can either make or break your business, ‌try to keep your customers happy, and get brand ambassadors that will help you stay relevant in the market.

Further reading you might find interesting:

• How to Create and Sell Profitable Online Courses: Step-by-Step Guide
• How to Teach Online & Earn Money in 2022: Definitive Guide
• How Much Money Can You Make Selling Online Courses?
• How to Design an Online Course in 2022: Best Practices, Tips & Templates
• What is an LMS (Learning Management System)?
• 18 Amazing Outline Templates to use in Course Design [3 Downloadables]
• The Essential Guide on How to Create Cohort-Based Courses

Kyriaki Raouna

Kyriaki is a Content Creator for the LearnWorlds team writing about marketing and e-learning, helping course creators on their journey to create, market, and sell their online courses. Equipped with a degree in Career Guidance, she has a strong background in education management and career success. In her free time, she gets crafty and musical.

• Undergraduate
• High School
• Architecture
• American History
• Asian History
• Antique Literature
• American Literature
• Asian Literature
• Classic English Literature
• World Literature
• Creative Writing
• Linguistics
• Criminal Justice
• Legal Issues
• Anthropology
• Archaeology
• Political Science
• World Affairs
• African-American Studies
• East European Studies
• Latin-American Studies
• Native-American Studies
• West European Studies
• Family and Consumer Science
• Social Issues
• Women and Gender Studies
• Social Work
• Natural Sciences
• Pharmacology
• Earth science
• Agriculture
• Agricultural Studies
• Computer Science
• IT Management
• Mathematics
• Investments
• Engineering and Technology
• Engineering
• Aeronautics
• Medicine and Health
• Alternative Medicine
• Communications and Media
• Advertising
• Communication Strategies
• Public Relations
• Educational Theories
• Teacher's Career
• Chicago/Turabian
• Company Analysis
• Education Theories
• Shakespeare
• Canadian Studies
• Food Safety
• Relation of Global Warming and Extreme Weather Condition
• Movie Review
• Admission Essay
• Annotated Bibliography
• Application Essay
• Article Critique
• Article Review
• Article Writing
• Book Review
• Business Plan
• Business Proposal
• Capstone Project
• Cover Letter
• Creative Essay
• Dissertation
• Dissertation - Abstract
• Dissertation - Conclusion
• Dissertation - Discussion
• Dissertation - Hypothesis
• Dissertation - Introduction
• Dissertation - Literature
• Dissertation - Methodology
• Dissertation - Results
• GCSE Coursework
• Grant Proposal
• Marketing Plan
• Multiple Choice Quiz
• Personal Statement
• Power Point Presentation
• Power Point Presentation With Speaker Notes
• Questionnaire
• Reaction Paper

Research Paper

• Research Proposal
• SWOT analysis
• Thesis Paper
• Online Quiz
• Literature Review
• Movie Analysis
• Statistics problem
• Math Problem
• All papers examples
• How It Works
• Money Back Policy
• Terms of Use
• Privacy Policy
• We Are Hiring

Customer Satisfaction, Essay Example

Pages: 1

Words: 292

Hire a Writer for Custom Essay

Use 10% Off Discount: "custom10" in 1 Click 👇

You are free to use it as an inspiration or a source for your own work.

Team Video Analysis

CanGo can potentially increase customer satisfaction by implementing several strategies that can be costly to initially install, but would considerably save CanGo’s expenditure in maintaining the customer service department.

Package Tracking

The company can invest in a package tracking system that allows customers to receive updates on the status of their packages and even provide updates on the physical locations of these packages as they traverse certain geographic points. This reduces the number of calls the customer service switchboard receives, reducing the cost of running customer service.

The company can invest in an in-depth, detailed and interactive website that can help consumers keep track of their packages and get customer care services. This can be achieved through the use of an interactive customer service live chat service within the website. This would be facilitated by the customer filling in details about their order before initiating the chat. The customer would wait for 2 minutes at most then get assigned to the customer care agent with all the information pertaining to their given package. The client would then be allowed to state their problems or issues with their package and this would be ironed out.

Customer Service Portals

It is vital that all clients can contact CanGo’s customer service department. This is essential for the customer to realize quality services for moneys paid. CanGo can invest in opening up official customer service portals on the different social media platforms to help customer service handle issues with packages in the most convenient manner any time of day. This will help the company interact with its customers, while gaining meaningful insight into trends in customer wants, desires and fashion.

Works Cited

Humphrey, Doris. Customer Service . Mason: South-Western Pub., 2011. Print.

Macahdo, Ricardo and Colin Diggines. Customer Service . Lansdowne: Juta, 2012. Print.

Stuck with your Essay?

Get in touch with one of our experts for instant help!

Women From Willendorf, Research Paper Example

Human Resource Training Proposal, Essay Example

Time is precious

don’t waste it!

Plagiarism-free guarantee

Privacy guarantee

Secure checkout

Money back guarantee

Related Essay Samples & Examples

Voting as a civic responsibility, essay example.

Words: 287

Utilitarianism and Its Applications, Essay Example

Words: 356

The Age-Related Changes of the Older Person, Essay Example

Pages: 2

Words: 448

The Problems ESOL Teachers Face, Essay Example

Pages: 8

Words: 2293

Should English Be the Primary Language? Essay Example

Pages: 4

Words: 999

The Term “Social Construction of Reality”, Essay Example

Words: 371

Customer Service Excellence and Customer Satisfaction Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Introduction

Academic libraries are facing several external and internal pressures in their environments. For instance, the popularity of the internet is causing potential library users to shift away from libraries as their primary source of knowledge. Additionally, academic institutions are struggling with budgetary allocations because they are competing with other public services such as hospitals.

University and college administrators have to critique the use of their resources in libraries and some may have to reduce allocations if minimal efficiency exists. Furthermore, the development of online libraries has created a renewed challenge in information services because new legal and copyright rules must be instated in order to protect authors. These and many more factors have/will force academic libraries to reconfigure their customer service or service quality provisions so as to survive in such challenging environments.

Evaluation of quality of services provided by academic libraries based on theories and models

Services marketing and 7 ps.

Services are quite distinct from fast moving goods because they possess certain qualities that cannot be found elsewhere. Services typically encompass economic activities transferred from one party to another. Usually, these are time bound and may not encompass exchange of physical assets; in other words transfer of ownership will not occur.

Customers in the services sector often exchange money and time for value derived from systems, networks, facilities, labour, skills or even goods owned by the service provider. In the case of academic libraries, customers exchange money (through annual fees) for facilities, systems and labour in those institutions. These qualities make the marketing of services quite unique; that aspect can be analysed through the 7Ps i.e. Product, promotion, price, place, people, process, physical environment (Lovelock and Wirtzm, 2011).

In service offering, product refers to a service concept that has the capacity to give value to customers. This will be a combination of a core need and a supplementary need. Academic libraries offer information through books and this is their core value; other supplementary needs include rental book services and cataloguing services which are designed to add value to the core product.

The second ‘P’ is promotion. Service marketing promotion often employs educating customers about the service, how to use it and how to drive maximum benefits from it. Academic libraries often do promotions through websites, self service equipment or use of display screens. Third, service marketing employs price.

Any service provider needs to be offering services at a price that will be worthwhile to customers so that they can go beyond price considerations and purchase the service. Academic libraries ought to minimise time and travelling expenses that can inflate price. They can do this by making their services convenient.

Place is also another important consideration. This refers to the channels used by the service provider and may be a physical location, website, the phone or other outlets. Libraries now have a wider access to distribution channels through the internet and this can improve performance.

‘People’ denote the employees used to deliver those services and they need to possess the right attitudes, interpersonal and technical skills. Academic libraries cannot compromise on this element as it is what users employ to assess their effectiveness. ‘Process’ means those variables involved prior to actual offerings. These may involve training, standardisation of services as well as automation. Academic libraries ought to employ rigorous service quality management as part of ‘process’.

Lastly, ‘physical environments’ refer to the look of tangible aspects of the service such as the building, furnishings and equipment. In academic libraries, this normally involves appropriate seating arrangements, arrangements of books and design of the actual library (Gummesson & Lovelock, 2004).

The latter overview of service marketing gives a brief illustration of what this concept entails in academic libraries. However, one needs to know whether actual institutions pay attention to 7ps of marketing. Primary data that has been collected from academic libraries by a number of researchers has illustrated challenges in the ‘people’ aspect.

Some employees have attitudinal issues. Many will be so preoccupied with the task at hand that they may not bother clarifying exactly what customers want. New students who may not know how to use library systems may often get assistance about how to locate references but rarely understand verbal illustrations. Many libraries lack practical illustrations for using their systems.

Overly speaking, the manner in which employees handle complications can be improved in most academic libraries. Additionally, libraries seem to have a problem with their product aspect because there is often very little excitement about new books. Displays are often not there or may not be attractive or value driven.

Promotional aspects of this industry are quite good because many institutions utilise the internet in order to educate customers about use. Libraries tend to be academically oriented so the physical environment in marketing can also be improved as many have not considered customer wants (Goh & Vhung, 1999).

Customer service system theory

Customer service systems encompass those kinds of configuration of technology and networks that are crucial in delivering the wants and needs of customers. In other words, it is a configuration of technology, people, external service systems, internal service systems and others connected through the use of shared information.

Domino’s Pizza is an exemplary case of how customer service systems can translate into profit. Domino’s decided to automate the pizza making process such that all unnecessary processes could be eliminated. This implied that the organisation could deliver quality pizzas uniformly. Also, in order to reduce time spent in handling paperwork, the firm adopted an IT system that would assist in management of marketing costs, inventory and payroll.

These contributed to their success. However, some service providers may have greater contact with their clients than others as is the case with academic libraries. Here, their aim in the customer service system should be to boost the quality of their interactions with users.

In such scenarios, they need to have technologies and networks that allow relatively new employs to carry out their roles effectively even as they go through the learning curve. Most customer service systems are complex and keep changing as more innovation takes place.

Many institutions have realised the importance of this aspect so most are using technology to boost their systems. However, it was found that most libraries will often introduce new product stacking methods yet they will not bother to inform and educate consumers about it. Customer service systems can only be effective if they involve the consumer so universities are failing in this area (Goh & Vhung, 1999).

Service quality model

The service model proposes a number of issues that must be tackled by service providers in order to enhance customer satisfaction. First, it proposes an assessment of customer perceptions on the services under consideration and assessment of their actual expectations. Many institutions will stop at customer perceptions of what they have already offered but most of them will rarely focus on the things that customers wish for or expect from that service provider. It is crucial to measure both these aspects in order to know where a library is and where it needs to be.

Service quality also encompasses improvement of services. This should involve the use of technology in library systems and effective training of those offering the service (Usherwood, 2003). Service providers also need to look for ways of cutting costs as these will translate into effective pricing strategies in the company.

Libraries often need to charge users for services used and if they can eliminate all the backlog in their service systems then this could definitely translate into lower unit pricing. Sometimes service improvement can translate into reduced costs but in other situations it could increase them. Libraries need to be aware of this potential clash and hence work on a compromise between the two goals.

Nothing matters more in service quality than valuing one’s customers. When most users are asked about the issues that make them highly dissatisfied in libraries, most will cite poor treatment by employees. Therefore, libraries need to ensure that the customer is valued by according him due respect.

This means responding effectively and promptly to their concerns. Scorning or criticising customers for complaints will often do more harm than good. Furthermore, valuing the customer also means offering timely service. Many library users have complained about waiting times when trying to get help from librarians. Academic libraries are not doing so well when it comes to the issues of prompt service delivery.

Service quality should also involve tangibles. Here, organisations need to pay attention to ambiance in their organisations. Customers should be able to derive satisfaction from this aspect in much the same way that they do from goods. Libraries often work on ambience by improving seating arrangements and design.

The users would prefer a place that is comfortable and satisfying. However, sometimes this may not work well because libraries are meant to facilitate knowledge acquisition rather than provide comfort. Therefore extremely comfortable seats may work against them.

Numerous academic libraries have created areas where students can seat around a table and even engage in discussions. This works against the major principle in operation in libraries because it creates noise and interrupts other serious students. Such a problem is quite rampant in a number of institutions and therefore needs to be addressed in order to improve service quality (Goh & Vhung, 1999).

Didactic model

The didactic model is an old school of thought in library and information services. In this model, it is assumed that the librarian knows best. He or she can anticipate the needs of the student and should therefore provide that individual with them.

It should be noted that this model focuses on needs and not wants; needs refer to things that students cannot do without while a want refers to an inherent desire that may not be that important. Librarians adhering to this school of thought will pay attention to student needs by relating them to an overall school mission or to certain policies applicable within the library.

In other words, the librarian considers himself or herself as a professional and someone who facilitates learning. He or she will therefore deduce users’ needs through external mechanisms. Librarians often reason that students may not always understand what is best of them and this implies that librarians must educate them about this knowledge.

If for example a student has been given an assignment by his or her lecturer, a librarian following this model will tell him how to find information that he is looking for rather than show him exactly where it is. In a number of academic libraries, it has been shown that many adopt such a stance.

Theirs is to encourage a spirit of independence and this can only be learnt when one is not spoon-fed. Practically speaking, many librarians in academic institutions have stated that they consider themselves as co teachers. Theirs is to complement the relationship that exists between students and their teachers in their lecture rooms. Consequently, most do not do searches on behalf of students especially those new ones who appear to be having unrealistic expectations (Martula & Menon, 2005).

Recommendations

Academic libraries can improve customer service through a series of approaches. The deficiencies in the 7 ps found in these institutions can be corrected through clarification of expectations. Libraries can repeat back what users tell them – a technique called mirroring.

This will ensure that they handle the right problems. Alternatively, they can teach new students how to use a new method of finding books or any other thing. They should deal with one sample and then let users do the rest. During waiting times, libraries can reduce pressure by installing video monitors which educate students about new developments in the library system.

Also, employees can empathize with students when they bring forward complaints or they can direct them to superiors if they feel that they cannot answer the question at all. This would cool down the concerned user and make them understand the situation especially when they hear it from a superior.

Libraries can work on promotional aspects by displaying new books at the entrance of the library to attract customers’ attention. All these issues will go a long way in improving customer excellence hence satisfaction.

Lovelock, C. and Wirtzm J. (2011). Services Marketing: People, Technology, Strategy. NJ: Prentice Hall

Gummesson, E. & Lovelock, C. (2004). Whither services marketing? In search of a new paradigm and fresh perspectives. Service research journal, 7(1), 20-41

Goh, C. & Vhung, P. (1999). Service typologies: a state of the art survey. Journal of Operations and productions, 8(3), 403-456

Usherwood, B. (2003). Libraries as a public service. Public library journal, 7(5), 141-145

Martula, C. & Menon, V. (2005). Customer expectations; concepts and reality for academic library services. College and research libraries journal, 56(13), 33-47

• Experience with Negative Leadership
• Leadership Traits, Strategies and Behaviors
• Effective of library services
• School Library
• Library Management System
• Concept of Niche Marketing
• Mergers and Acquisitions Effect on Organizational Performance
• New affordable e-book product is in the market
• Impact of Algorithmic Trading on Tournament Behavior of Mutual Fund Managers
• Humor in the Workplace
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2019, March 22). Customer Service Excellence and Customer Satisfaction. https://ivypanda.com/essays/customer-service-excellence-and-customer-satisfaction/

"Customer Service Excellence and Customer Satisfaction." IvyPanda , 22 Mar. 2019, ivypanda.com/essays/customer-service-excellence-and-customer-satisfaction/.

IvyPanda . (2019) 'Customer Service Excellence and Customer Satisfaction'. 22 March.

IvyPanda . 2019. "Customer Service Excellence and Customer Satisfaction." March 22, 2019. https://ivypanda.com/essays/customer-service-excellence-and-customer-satisfaction/.

1. IvyPanda . "Customer Service Excellence and Customer Satisfaction." March 22, 2019. https://ivypanda.com/essays/customer-service-excellence-and-customer-satisfaction/.

Bibliography

IvyPanda . "Customer Service Excellence and Customer Satisfaction." March 22, 2019. https://ivypanda.com/essays/customer-service-excellence-and-customer-satisfaction/.

Home — Essay Samples — Business — Customer Relationships — Customer Service

Essays on Customer Service

Importance of writing an essay on customer service.

Writing an essay on customer service is important for several reasons. Firstly, it allows individuals to understand the significance of providing excellent customer service in any business or organization. Customer service is the backbone of any successful company, and it is crucial to educate individuals on the best practices for delivering exceptional service to customers.

Additionally, writing an essay on customer service helps individuals develop critical thinking and analytical skills. It requires them to research and gather information on various aspects of customer service, such as communication, problem-solving, and relationship-building. This process enhances their ability to think critically and make informed decisions when dealing with customers.

Furthermore, writing an essay on customer service encourages individuals to reflect on their own experiences as customers and as service providers. This self-reflection can lead to a better understanding of the challenges and opportunities that come with delivering exceptional customer service, and it can inspire individuals to improve their own customer service skills.

When writing an essay on customer service, it is essential to keep in mind a few tips to ensure the essay is effective and impactful:

• Research extensively to gather information from reliable sources about customer service best practices, case studies, and success stories.
• Organize the essay with a clear introduction, body paragraphs that discuss different aspects of customer service, and a strong conclusion that summarizes key points and offers recommendations for improvement.
• Provide real-life examples and anecdotes to illustrate the importance of excellent customer service and the impact it can have on a business or organization.
• Use clear and concise language to convey ideas and make the essay easy to understand for the audience.
• Include relevant data and statistics to support arguments and demonstrate the significance of customer service in driving customer satisfaction and loyalty.
• Edit and proofread the essay to ensure it is free of grammatical errors, typos, and inconsistencies.

In conclusion, writing an essay on customer service is important for raising awareness about the significance of providing exceptional service to customers, developing critical thinking and analytical skills, and promoting self-reflection. By following the tips mentioned above, individuals can write an insightful and impactful essay that highlights the importance of customer service in any business or organization.

What Makes a Good Customer Service Essay Topics

When it comes to choosing a topic for a customer service essay, it's important to consider what will engage and interest your audience. To brainstorm ideas, think about current trends in customer service, common challenges faced by customer service professionals, and innovative solutions to improve the customer experience. Consider topics that are relevant, thought-provoking, and have the potential to spark meaningful discussions. A good essay topic should also be well-researched, providing enough material for a comprehensive and informative essay.

Best Customer Service Essay Topics

• The impact of artificial intelligence on customer service
• The role of empathy in customer service interactions
• The importance of customer feedback in improving service quality
• Strategies for handling difficult customers
• The rise of self-service customer support options
• The impact of social media on customer service
• The future of customer service in a digital world
• The role of emotional intelligence in customer service
• Effective communication strategies for customer service professionals
• The importance of customer loyalty in business success
• The impact of globalization on customer service practices
• The role of customer service in building brand reputation
• The psychology of customer satisfaction
• The use of technology to personalize the customer experience
• The ethics of customer service
• The role of customer service in healthcare
• The impact of culture on customer service expectations
• The role of customer service in the hospitality industry
• The impact of customer service on customer retention
• The future of chatbots in customer service

Customer Service Essay Topics Prompts

• Imagine a world without customer service - what would it look like?
• Write a letter to a company praising their exceptional customer service
• Create a customer service training program for a new business
• Interview a customer service professional and write about their experiences
• Write a persuasive essay on the importance of investing in customer service training for businesses

Choosing the right customer service essay topic is crucial to creating a compelling and informative piece of writing. By considering current trends, challenges, and innovations in customer service, you can generate ideas that will engage and captivate your audience. With the right topic, you can create an essay that sheds light on important aspects of customer service and provides valuable insights for businesses and professionals in the industry.

Descriptive Paper About Disneyland

The definition of serving others, made-to-order essay as fast as you need it.

Each essay is customized to cater to your unique preferences

+ experts online

The Multifaceted Dynamics of Bank Experiences

Best practices in customer service, the importance of communication in customer service, the customer is always right: the issue of customer aggression, let us write you an essay from scratch.

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

How to Deal with Negative Reviews

The issue of customer service in united airlines, excellence in customer service, impact of customer service on consumer buying behaviour, get a personalized essay in under 3 hours.

Expert-written essays crafted with your exact needs in mind

The Definition of Email Marketing and Its Importance

Journal critique article reviewed: "satisfaction strength and customer loyalty", an analysis of factors impact on customer satisfaction in restaurants: case of fast food restaurants, the client experience model, reflection on the customer relationship development course, how to satisfy internal & external customers’ requirements, starbucks customers" review, the importance of motivating the staff to provide outstanding hospitality service, important service improvements to increase restaurant customers |, the analysis of the article "case study of cross cultural communication issues for filipino call centre staff & their australian customers" by alison owens, customer relationship management and customer value, customer lifetime value, consumer perceptions of artificial intelligence, erp for small and medium enterprises, the dependence of the tourism and hospitality industry on the quality of customer service, trends in telecommunication sector, overview of the prospects of consumer cooperative societies, customer-centric marketing, the importance of quality customer service for business, rph buddy service, relevant topics.

• Madam Cj Walker
• Comparative Analysis
• Small Business
• Supply Chain Management
• Black Friday
• Project Management

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

Do We Spend More Money When We are Satisfied? Customer Satisfaction

• First Online: 30 August 2024

Cite this chapter

• Sebastian Oetzel 3 &
• Andreas Luppold 4  

This chapter presents scientific studies and meta-analyses on customer satisfaction, demonstrates the significant influence of customer satisfaction on firm performance and willingness to pay, summarizes eight principles of spending that make us happier, and discusses implications for pricing policy.

Why companies should measure their customers’ satisfaction. And why customer satisfaction increases willingness to pay.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime
• Available as PDF
• Read on any device
• Instant download
• Own it forever
• Available as EPUB and PDF
• Compact, lightweight edition
• Dispatched in 3 to 5 business days
• Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Anderson, E. W., Fornell, C., & Mazvancheryl, S. K. (2004). Customer satisfaction and shareholder value. Journal of Marketing, 68 (4), 172–185.

Article   Google Scholar  

Dunn, E. W., Gilbert, D. T., & Wilson, T. D. (2011). If money doesn’t make you happy, then you probably aren’t spending it right. Journal of Consumer Psychology, 21 (2), 115–125.

Gong, T., & Yi, Y. (2018). The effect of service quality on customer satisfaction, loyalty, and happiness in five Asian countries. Psychology & Marketing, 35 (6), 427–442.

Gruca, T. S., & Rego, L. L. (2005). Customer satisfaction, cash flow, and shareholder value. Journal of Marketing, 69 (3), 115–130.

Homburg, C., Koschate, N., & Hoyer, W. D. (2005). Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay. Journal of Marketing, 69 (2), 84–96.

Maier, E. (2020). Kundenzufriedenheitsmessung in Unternehmen, HHL Leipzig Graduate School of Management.

Google Scholar  

Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer satisfaction and firm performance: Insights from over a quarter century of empirical research. Journal of the Academy of Marketing Science, 48, 543–564.

Download references

Author information

Authors and affiliations.

Hochschule Fulda – University of Applied Sciences, Fulda, Germany

Sebastian Oetzel

Oestrich-Winkel, Germany

Andreas Luppold

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Sebastian Oetzel .

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature

About this chapter

Oetzel, S., Luppold, A. (2024). Do We Spend More Money When We are Satisfied? Customer Satisfaction. In: 33 Phenomena of Purchasing Decisions. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-44799-1_16

Download citation

DOI : https://doi.org/10.1007/978-3-658-44799-1_16

Published : 30 August 2024

Publisher Name : Springer Gabler, Wiesbaden

Print ISBN : 978-3-658-44798-4

Online ISBN : 978-3-658-44799-1

eBook Packages : Business and Management Business and Management (R0)

Share this chapter

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Publish with us

Policies and ethics

• Find a journal
• Track your research

• Newsletters
• Best Industries
• Business Plans
• Home-Based Business
• The UPS Store
• Customer Service
• Black in Business
• Your Next Move
• Female Founders
• Best Workplaces
• Company Culture
• Public Speaking
• HR/Benefits
• Productivity
• All the Hats
• Digital Transformation
• Artificial Intelligence
• Bringing Innovation to Market
• Cloud Computing
• Social Media
• Data Detectives
• Exit Interview
• Bootstrapping
• Crowdfunding
• Venture Capital
• Business Models
• Personal Finance
• Founder-Friendly Investors
• Upcoming Events
• Inc. 5000 Vision Conference
• Become a Sponsor
• Cox Business
• Verizon Business
• Branded Content
• Apply Inc. 5000 US

Inc. Premium

Customer Satisfaction Isn't a Process. It's a Culture

Customer satisfaction isn't about highly structured processes and programs but creating a culture of service..

If you've ever worked the front lines, where you're directly dealing with customers, you know that sometimes, a customer can't be satisfied . It's always a challenge dealing with a difficult customer, but many times, companies have hard and fast rules for how to engage with these customers, leaving employees in the position of facing anger , frustration, yelling, and even sometimes rage.

Is it essential to ensure every customer is satisfied ? I would assume that most people would argue, "No."

Yet customer engagement structures--specifically scripts, processes, and protocols--are designed to streamline this problem-solving and keep the customer happy, right? They don't.

Think about when you've spoken with a salesperson, customer service person, or even technical support. Within minutes, or even seconds, it's usually clear if you're speaking to someone who is truly knowledgeable, has decision-making powers, and truly has your interests and needs in mind.

Compare that to speaking with an individual bound to a script, where they take you through an often unnecessary protocol, simply because it's "company's process."

Of course, you'd get frustrated. It wastes your time and often requires you to repeat the same information or data ad nauseam. Companies can argue that the process delivers consistency and better responsiveness, but in reality, it's designed to:

• Keep customers in a slower decision-making process , to create the opportunity to wear you down and sell you ancillary products and services. It's a typical technique used in selling cars, using time as a tool to draw out the process.
• Protect the company from losing money or legal action . Simply put, if processes are standardized, they can ensure each box is "checked" to avoid any gray areas settling a dispute, as well as having proof to back up the company's position on an issue.
• Reduce company costs and expenses . If a company uses an automated system to filter customer support calls before connecting them with an agent, it reduces company costs including salaries, training, and benefits expenses.

In short, many customer service, sales, and support functions are not designed to serve the customer but rather serve the company.

It's reasonable as a company to believe you can't satisfy every customer. Companies should be aware of who are their truly challenging customers and consider whether you want to continue to do business with them. If that relationship between the company and the customer is toxic, sometimes it's best to cut off that relationship.

However, if the company is not tooled up to truly listen to, engage, and serve customers,  will have many more unsatisfied customers than happy ones. Or simply many who choose not to complain and migrate to the competition.

Organizations that focus on creating genuine satisfaction are those that listen, are proactive, and are insightful to the greater needs of their customers, first and foremost. They design their communications, processes, and training around the customer and the way they want to do business, rather than forcing them into following internal business processes. In short, it's driving the organizational strategy and culture around service over cost-cutting.

So companies unwittingly create unhappy and dissatisfied customers due to their internal processes, procedures, and lack of employee training and support. The question isn't how to satisfy all of your customers, but whether you are generating customer dissatisfaction from the inside out.

A refreshed look at leadership from the desk of CEO and chief content officer Stephanie Mehta

Privacy Policy

Accounting for the needs of the customer as a whole drives loyalty and satisfaction

This report presents findings from an American Banker/Monigle consumer survey to help FIs better understand the core aspects of a humanized customer experience and determine how they can use these insights to drive customer loyalty and increase revenue. The survey, now in its fourth year, shows FIs where they stack up against their peers and what the changing importance of particular attributes (e.g., interactivity, trust, security and digital) means for them as they work to become the brand of choice for their target audience.

Topics include: 

• Where FIs are, and aren't, finding success delivering on the core aspects of customer experience
• How FIs measure up against each other in areas like responsiveness, ease and buzz
• The support customers want from FIs to help improve their financial health
• How AI factors into a humanized customer experience

More From Forbes

What mythology and philosophy can teach leaders about motivating workers.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

Sabeer Nelliparamban is the Founder & CEO of Zil Money Corporation, Online Check Writer and Tyler Petroleum Inc.

For a business leader, there is no bigger red flag that points to poor employee management than finding someone casually watching YouTube videos during work hours. And when you question them, they respond casually, "I was bored."

This is something I experienced, and I'm sure other business owners and managers have had to deal with similar scenarios. Lack of employee engagement has been and will continue to be a major problem leaders need to address. Gallup's research shows that two-thirds of employees are disengaged at work. When the core workforce is not emotionally invested in what they are doing, that will reflect on overall operational efficiency and customer satisfaction. Underperformance, higher turnover and decreased productivity can all stem from employee disengagement .

I think we can glean some unique insights into this topic by examining it through the prism of mythology and philosophy. Sisyphus, a figure in Greek Mythology, was punished by the gods and condemned to push a boulder up a hill for all eternity. Imagine that: an endless cycle of repetitive, meaningless labor.

On the other hand, many employees today feel like a cog in the machine , performing repetitive tasks without a sense of purpose. French philosopher and author Albert Camus, in his essay " The Myth of Sisyphus ," argued that despite his futile task, Sisyphus can find meaning by embracing the struggle itself. "One must imagine Sisyphus happy," Camus says. But are your employees happy and inspired?

Billionaire Daughters Pegula, Navarro Are Into The U.S. Open Semifinals: ‘No, I Don’t Have A Butler’

Today’s nyt mini crossword clues and answers for thursday, september 5, billionaire daughters pegula, navarro advance to u.s. open semifinals.

When I encountered the case of the modern-day Sisyphus, who was caught red-handed scrolling YouTube, I was advised to fire the person immediately, but my curiosity got the better of me. Rather than simple negligence, I saw this behavior as a cry for help, a signal that their current role doesn't fulfill their need for purpose or challenge. From an existentialist perspective, the employee might be grappling with a crisis of meaning in their work. Their tasks might feel repetitive or meaningless, leading to a sense of alienation and a search for external distractions.

The Motivation

An individual's search for meaning extends to the workplace. I believe that is why some research has shown that meaningfulness is valued by employees more than pay or rewards. While financial compensation might have been one of the major driving forces that motivated older generations of workers, current Millennial and Gen-Z employees tend to prioritize meaningful work that gives them a sense of purpose. What they are looking for is not just a job but also a fulfilling vocation that aligns with their personal values and allows them to make a positive impact on society.

To address this shift, employers must create an environment where the idea of meaningful work permeates all levels of the organization. This involves helping employees discover the value in their everyday tasks and fostering a culture emphasizing purpose over mere productivity.

Meaning Through Autonomy

Existentialism highlights individual freedom and the importance of fostering autonomy. I've found that when employees have more control over their work, they can better align their tasks with their interests and values. This sense of ownership fosters a deeper connection to their work and contributes to finding meaning.

Let us consider some strategies that empower employees to make choices that shape their work experience and contribute to their overall sense of purpose.

Job crafting initiatives: Human beings are, by nature, curious creatures, and I believe power-driven corporate models can stifle creativity. Although every job comes with a job description, forcing employees to do only what they were hired for can limit their potential. Allow your employees to work with managers and redefine their job tasks to better align with their interests and skills. Provide flexibility in task assignment and project selection within the role's core responsibilities.

Peer recognition and reward systems: The best performance analysts in an organization are often the employees. They have a front-row seat to closely watch how a person performs on a day-to-day basis and contributes to group activities. Implement systems where employees can recognize and reward one another for going the extra mile, exhibiting initiative or taking ownership of their work.

Autonomy training: Both employees and managers should be introduced to training programs that cultivate autonomy and decision-making skills. Role-playing exercises can be incorporated to address general mindsets around control and effective task delegation. Decision-making frameworks can be established to provide clear guidelines and structures to make informed choices that align with project goals.

Creating A Culture Of Purpose

My personal experiences as a CEO have taught me that creating a purpose-driven culture is closely connected with celebrating the autonomy of your employees and trusting them to make the right choice. You want them to be active participants in your firm's journey rather than passive observers with one foot out the door. A strategy that I use is to share how individual and team efforts have positively impacted customers.

Suppose a client has something positive to say about a particular customer service executive's dedication or problem-solving skills. In that case, I'd personally acknowledge the employee, share the positive feedback with the entire team and highlight their story on internal communication channels.

This approach serves dual purposes.

• Employee recognition: Public recognition reinforces the value employees bring to the company and their impact on customer satisfaction.

• Connection to purpose: When employees see the tangible results of their work, they understand how their efforts contribute to the company's broader mission.

While traditional work can feel Sisyphean, philosophy can offer a path to purpose. The human desire for meaning is a key motivator, and I believe taking an existential approach can lead to a more engaged and impactful workforce. However, employers have to be careful to help employees find their meaning rather than define it for them. Moreover, employees should be given the freedom to experiment, and mistakes should be viewed as learning opportunities.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

• Editorial Standards
• Reprints & Permissions

Customer Survey 2024: Unveiling insights and impact

Our 2024 customer survey highlights impressive ROI, customer satisfaction, and key trends in digital performance monitoring

We’re delighted to share the results of our 2024 Annual Customer Survey. Participants from some of the world’s most innovative companies shared their insights and experiences, highlighting our growing impact, impressive ROI, increased customer satisfaction, and broad adoption across various teams.

Learn the key trends from the survey and how Catchpoint ensures Internet Resilience for some of the world’s most innovative companies.  

Customer insights on ROI and business impact

The survey results show that partnering with Catchpoint has led to a positive Return on Investment (ROI) for the overwhelming majority of our customers, with 93% reporting significant benefits .  

Key Benefits reported:

• Improved MTTR and customer satisfaction. 43% of respondents indicated that partnering with Catchpoint has improved their MTTR. This shows the value of Internet Performance Monitoring (IPM) in helping identify and fix issues before they impact customers.
• Improved customer satisfaction. It’s no surprise then that 42% of respondents reported improved customer satisfaction, highlighting Catchpoint's positive impact on the end-user experience by ensuring better service performance and reliability.

We asked our customers if they could provide any quantifiable details about the ROI they have seen and share what the business impact would be if they did not use Catchpoint.

Here are noteworthy quotes from their responses:

• “We have reduced our support time by up to 8%.”
• “We saw a reduction in the number of tickets from a monthly average of 13 tickets to 8 tickets.”
• "With the help of Catchpoint, our team was able to identify issues and potential impacts before the users or customers. Catchpoint not only detected application reachability issues but also helped in identifying performance issues which improved user experience significantly."
• "We have seen capture and resolution of issues and customer friction points before customer reports or becomes an incident saving CS team time and improving NPS."
• "Catchpoint uncovered severe performance issues with third-party services. Their resolution allowed us to improve the speed of our pages, which resulted in improved CX/UX and customer satisfaction."
• "Recovery from downtime before the business reports the issue was the greatest benefit, resulting in a reduction of downtime by about 2-3 business days per month."
• "Since our main test suites for keeping SLAs are on Catchpoint, I am confident that these SLAs would be breached if we weren't using Catchpoint."

Protecting revenue through proactive incident detection

Internet incidents are costly. According to a recent study conducted by Forrester Consulting , 37% of organizations estimated losing between $100,000-$499,000, and 39% lost $500,000-$999,999 due to Internet disruptions in the month before the study. Consider that for 12% of our customers, we caught an average of over 76 incidents a month, significantly protecting their revenue. Catchpoint’s ability to detect and address issues swiftly helps safeguard against substantial financial losses, ensuring business continuity and operational resilience.

IPM + APM integration continues in 2024

The data shows that most companies are integrating multiple monitoring and observability tools, including both Internet Performance Monitoring (IPM) and Application Performance Monitoring (APM) solutions. The widespread use of APM platform like Dynatrace, DataDog, and App Dynamics alongside Catchpoint IPM indicates a trend towards a best-of-breed observability strategy that leverages the strengths of both IPM and APM.

Catchpoint’s robust API capabilities mean you don't have to use the Catchpoint portal as your main monitoring tool; instead, you can integrate its data into your preferred tool, enhancing its effectiveness. This integration enhances monitoring coverage, improves incident response, and optimizes overall performance, ensuring a thorough approach to maintaining digital experience and operational efficiency. While there may not be one magic monitoring tool, Catchpoint can enhance any tool to make it far more effective.

Key monitoring priorities for 2024 revealed

In 2024, our customers are prioritizing customer experience, with 42% ranking it as their top focus. A significant portion also rated it as a moderate priority (2) with 30%, showing a widespread recognition of its importance. APIs and application experience follow closely, highlighted by 25% of respondents. Internal and external network performance also remain crucial, with consistent attention across all priority levels. These insights highlight a strong emphasis on enhancing customer-facing and application-related performance while maintaining robust network operations.

Top challenges 2023 vs. 2024

We asked our customers what their biggest challenge was in 2023 and what they predict it will be in 2024. The question was open-ended, allowing respondents to type their answers freely.

Here are the challenges that came up most often:

• Service availability and uptime The survey responses reveal a strong focus on maintaining high service availability and uptime, both in 2023 and moving into 2024. Phrases like “service availability,” “expanding to all endpoints,” and “maintain uptime for application” were noted.
• Monitoring and performance ‍ Issues related to monitoring system performance were frequently mentioned. Respondents noted challenges such as “monitoring performance of key integrations,” “monitoring system performance,” and “API health monitoring.”
• Security ‍ Security challenges were a common theme, with mentions of “malicious attacks,” “security vulnerabilities,” and “DNS performance monitoring.”

Looking ahead: Building on our success

Our annual Customer Survey highlights the significant value we deliver to our customers. From improving MTTR to providing robust integration capabilities, Catchpoint stands out as a critical partner for ensuring Internet Resilience and operational efficiency. We remain committed to supporting our customers navigate the complexities of digital performance, safeguarding against disruptions, and driving impactful business outcomes.

Thank you to all participants for sharing your insights. We look forward to building on this success and continuing our journey together.

Subscribe to our weekly update

Sign up to receive our latest news via a mobile-friendly weekly email

You might also like

The need for speed: highlights from ibm and catchpoint’s global dns performance study, takeaways from the crowdstrike outage: third-parties can pose risk.

We get Catchpoint alerts within seconds when a site is down. And we can, within three minutes, identify exactly where the issue is coming from and inform our customers and work with them.”

• Ship Overview Rate Quote Pickup Request Terminal Locations and Maps Bill of Lading Transit Time Calculator Density Calculator Commodity Library Points Download
• Track Overview Shipment Tracking Pickup Visibility
• Manage Overview Document Retrieval & Viewing Recent Shipments Invoice Inquiry Online Reporting Claims Shipment Manifest Rating and Billing Discrepancies Weight & Research Inquiry My Estes
• Services Overview Less-Than-Truckload Time Critical Guaranteed Final Mile Volume LTL and Truckload Canada / Mexico Alaska / Hawaii / Puerto Rico Custom Shipping and Logistics EFW / Global Freight Forwarding Trade Show Shipping Estes SureMove
• Resources Overview Frequently Asked Questions Digital Solutions Shipping Made Simple Coverage Areas and Maps Shipping Forms and Documents Digital Interfaces Fees and Surcharges Holiday Schedule Transportation Glossary Hauling Exclusions Transportation Management Systems Canadian Currency Conversion Claims Information
• My Estes Login Create Account Request Account Number Edit My Profile Request Account Number Address Book Commodity Library Logout
• Create Account
• Request Account Number
• Edit My Profile
• Address Book
• Commodity Library

Estes Earns Record-High Score On 2024 LTL Customer Satisfaction Survey

Richmond, VA— Estes achieved its highest-ever Net Promoter Score (NPS) on its Summer 2024 LTL Customer Satisfaction Survey. On a scale of -100 to 100, Estes scored a 59, which is a 10-point increase from its survey score earlier this year. And 73% of customers rated Estes a 9 or 10 out of 10 overall.

Estes conducts these surveys to better understand its customers' experiences with its freight services.

According to the survey, Estes exceeded its already strong record of exceptional service, receiving its highest scores to date in the following categories:

• On-time pickups
• On-time deliveries
• Shipment condition

Estes added Communication as a new category to the survey, which also showed high satisfaction.

"We are thrilled with the survey’s results, especially all the positive feedback on our on-time pickups and deliveries, shipment condition, and communication. Having our highest score to date is a testimony to our employees’ ongoing dedication to go above and beyond to deliver even more exceptional service every day," said Carrie Johnstone, vice president of customer experience and innovation. "Thank you to our customers that participated in our survey. Your valuable feedback helps us further enhance our services to deliver an even better experience in the future.”

About Estes

Estes is North America’s largest privately owned freight carrier . As an asset-based transportation provider with a global footprint, Estes combines nearly a century of regional freight shipping expertise with the resources, reach, and reliability of a national carrier. Backed by its 280+ North American terminals, nearly 7,000 next-day lanes, and fleet of more than 10,000 tractors, Estes is committed to getting America's freight where it needs to go, when it needs to get there. And with its continued investment in leading-edge technology, as well as the support of its more than 23,000 employees, Estes always goes the extra mile to deliver exceptional experiences that keep its customers coming back. The carrier’s comprehensive freight shipping solutions include Less Than Truckload (LTL) , Volume LTL and Truckload , Time Critical Guaranteed , Custom Shipping and Logistics , and Final Mile . From short-haul to global freight forwarding—Estes does it all.

Ethical. Honest. Committed.

We go the extra mile to deliver freight solutions you can count on.

Are you sure you wish to log out?

An official website of the United States government

Here’s how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

• Documents Library

Customer Satisfaction Survey - August 2024

Customer satisfaction survey results (reported by SurveyMonkey) for July 2024.

• MyNewMarkets.com
• Claims Journal
• Insurance Journal TV
• Academy of Insurance
• Carrier Management

Featured Stories

• US P/C Industry Posts H1 Underwriting Profit
• New York City’s Biggest Taxi Insurer Is Insolvent

Current Magazine

• Read Online

For Small Commercial Businesses, Insurance Satisfaction Is a Matter of Trust

Trust impacts customer satisfaction, loyalty and brand advocacy more than other factors when small businesses choose a commercial insurance provider.

J.D. Power’s 2024 U.S. Small Commercial Insurance Study found that among small businesses with the most trust in their insurers, 81% said they “definitely will” renew with their carrier, and 79% said they “definitely will” recommend their carrier.

“Trust is the single most important variable in the customer relationship with commercial insurance providers,” said Stephen Crewdson, senior director of global insurance intelligence at J.D. Power.

The survey, now in its 12th year, measured trust, price for coverage, product/coverage offerings, ease of doing business, people, problem resolution and digital channels.

“Across virtually every business metric that matters to insurers—customer loyalty, advocacy, premium retention, share of wallet—small business owners who trust their insurers represent significantly higher value,” said Crewdson. “While some insurers are doing a great job cultivating that trust, others have a lot of work to do.”

On the survey’s 1,000-point scale, American Family ranked highest in overall customer satisfaction with a score of 727. State Farm ranked second, and Allstate ranked third. Small-business (50 or fewer employees) customers’ average overall satisfaction with commercial insurers is 697.

Small-business satisfaction and trust are up against the challenges of premium increases. In 2024, 36% of small businesses saw a premium increase, up from 34% in 2023. Of those, the insurer initiated 51% of increases, 16% were due to changing business needs, and 13% resulted from changes customers made to their policies. When customers are notified in advance and understand the reasons behind a premium increase, trust is 142 points higher than when they are blindsided by unexplained increases, the survey found.

Insurers ranked with the highest levels of trust also provided personalized products. However, only 55% of small businesses surveyed said they’ve received personalized information from their insurer. Personalization drives an average overall trust score of 761, and trust is 106 points lower (655) among those who have not received personalized information.

Topics Commercial Lines

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Written By Jahna Jacobson

Jahna Jacobson is an Assistant Editor for Insurance Journal Magazine.

Interested in Commercial Lines ?

Get automatic alerts for this topic.

• Categories: National News Topics: customer satisfaction , J.D. Power U.S. Small Commercial Insurance Study , small commercial insurance
• Have a hot lead? Email us at [email protected]

Insurance Jobs

• Claim Operations Specialist – West Bridgewater, MA - West Bridgewater, MA
• Auto II Claim Representative - Overland Park, KS
• NA Sales Operations Specialist - New York, NY
• Managed Care Leader - Atlanta, GA
• Insurance Premium Auditor – REMOTE - Remote

• Youth Sports Liability Market in 'Armageddon Mode'
• Condos: A Difficult Market to Navigate
• Inflation, the Economy and Workers’ Comp: A Positive Outlook
• Umbrella Liability: The Triple Upsell Possibility for Personal Lines Clients
• Where the AI Risks Are: Swiss Re's Top 10 Ranking by Industry

• Reinsurers' Appetite for Natural Catastrophe Risks Grows — But Discipline Remains
• Using AI to Provide a More Human Claims Experience
• NYC Cab Crash Sends Rider on 'Nightmare' to Get Insurance Money
• Johnson & Johnson Adds $1.1B to Proposed Talc Settlement
• U.S. Judge Says X Must Face Class Action Age Bias Claims Over Mass Layoff

• August 22 HO-14: More Than a Mature HO-4

Cookies on GOV.UK

We use some essential cookies to make this website work.

We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies. You can change your cookie settings at any time.

You have rejected additional cookies. You can change your cookie settings at any time.

DVLA customer satisfaction 2023 to 2024

The DVLA customer satisfaction survey is used as a continuous measure of customer service satisfaction.

PDF , 149 KB , 1 page

This file may not be suitable for users of assistive technology.

DVLA customer satisfaction summary report 2023 to 2024

PDF , 185 KB , 5 pages

The customer satisfaction survey 2023 to 2024 measures the satisfaction level of private motorists and commercial drivers when using DVLA services. This helps the agency to identify areas for improvement.

Updates to this page

Sign up for emails or print this page, related content, is this page useful.

• Yes this page is useful
• No this page is not useful

Help us improve GOV.UK

Don’t include personal or financial information like your National Insurance number or credit card details.

To help us improve GOV.UK, we’d like to know more about your visit today. Please fill in this survey (opens in a new tab) .

Recall Visits in Japan Generate Lower After-Sales Service Satisfaction, J.D. Power Finds

Lexus, Nissan and MINI Rank Highest in Their Respective Segments

TOKYO: 5 Sep. 2024 — Among dealership customers in Japan who brought their vehicle in for a recall, satisfaction is 711 (on a 1,000-point scale) compared with those who brought their vehicle in for other after-sales services (725), indicating more negative experiences during the recall visit, according to the J.D. Power 2024 Japan Customer Service Index (CSI) Study, SM released today.

In 2024, overall customer satisfaction with after-sales service averages 725 points, almost unchanged from 2023 with an increase of 1 point. By factor, satisfaction for booking/dropping off the car is 728, while the satisfaction for service quality/car delivery is 724 and 722 for dealer facilities and support. By segment, overall satisfaction is 775 for luxury brands, 721 for mass market domestic brands and 747 for mass market import brands.

“Recall visits to dealerships have considerably increased in the past year,” said Taku Kimoto, senior managing officer of research at J.D. Power . “Dealerships are struggling with organizing their schedules due to more owner visits,  which is affecting the wait times for all customers. To increase satisfaction for recall appointments, dealerships can work on customer interactions, such as presenting more detailed repair explanations and patiently answer their questions. Customers perceive a recall as an unexpected event and many already have negative feelings when bringing their vehicle to the dealership, so dealerships need to bear this in mind and provide a basic explanation to the customer while checking to see that it was understood, as well as being considerate of customers’ feelings and treating them with care and flexibility.”

Following are some of the key findings of the 2024 study:

• Recall visits increase and satisfaction drops: In recent years, customer expectations have increased for quality and safety, as advanced technologies have evolved and more features have been installed on new vehicles. In this context, recalls are brought to the fore in the after-sales service field, and how to treat customers during a recall visit has received harsh reactions. In this year’s study, among customers who used their dealership for after-sales service, 11% say that they “had their vehicle repaired or a problem fixed,” unchanged from a year ago. However, among these customers, 46% “were subject to recall,” substantially increased from 34% in 2023. Among customers who had a recall repair, satisfaction averages 711, 14 points lower than for overall after-sales service (725), revealing complaints during the recall repair visit.
• Improving time efficiency and enhancing customer responses: Among customers who visited the dealership for a recall, the majority (53%) made the appointment within two weeks before the visit, 8 percentage points higher than the overall average (45%). This indicates that many of these customers made an appointment on short notice.　Regarding repair time, 39% of customers who visited the dealership for a recall say within one hour from bringing their vehicle in to being returned, compared with 58% for the overall average. There are also challenges to be addressed during handing the vehicle over to customers who visited the dealership for a recall. In terms of poor responses during recall visits, 35% say that they never experienced that the service representative explained one-sidedly and 46% say that the service representative did not give proper answers to my questions—both of which are 7 points lower than the overall average. This suggests that for customers who visit the dealership for a recall, stress associated with poor communications with the service representative causes the decrease in satisfaction.

Study Rankings

Luxury Brands

Among the five luxury brands included in the study, Lexus ranks highest, with a score of 807. Lexus performs particularly well in all of the three factors: dealer facilities and support; booking/dropping off the car; and service quality/car delivery. BMW (772) ranks second.

Mass Market Domestic Brands

Among the eight mass market domestic brands included in the study, Nissan ranks highest, with a score of 736. Nissan performs particularly well in two factors, which are dealer facilities and support, and booking/dropping off the car. Honda (735) ranks second and Toyota (727) ranks third.

Mass Market Import Brands

Among the five mass market import brands included in the study, MINI ranks highest, with a score of 783. MINI performs particularly well in all the factors: dealer facilities and support; booking/dropping off the car; and service quality/car delivery. Volkswagen (772) ranks second.

The Japan Customer Service Index (CSI) Study measures satisfaction with after-sales service among new-vehicle owners between 14 to 49 months of ownership. The study surveys owners who visited a manufacturer-authorized service center for maintenance or repair work in the past year. The study, now in its 23rd year, this year is based on responses from 8,670 owners who purchased their new vehicle between April 2020 and March 2023. The online survey was fielded in May-June 2024.

About J.D. Power

J.D. Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. J.D. Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

J.D. Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://japan.jdpower.com/ .

Media Relations Contacts

Kumi Kitami, J.D. Power; Japan; 81-3-6809-2996; [email protected] Geno Effler, J.D. Power; USA; 714-621-6224; [email protected]

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info