May 17, 2010

A Pathway from customers’ retention to customers’ satisfaction!

Customer satisfaction means meeting or exceeding customer expectations. It depends on the degree to which expectations are exceeded or it can range from satisfied to delighted customers. Customer satisfaction now-a-days have a growing importance. Organizations have pay attention to retain customers in order to flourish their business. There are two reasons to giving such an importance of retaining customers’ satisfaction as: It requires a huge front-end investment and researchers have proved that it is five times more expansive to create a customer as compared to retain them.

A second cause is it as a preemptive approach against the competitive threats. If someone desires to make a market monopoly it is necessary for him/her to retain its customers’ satisfaction level once achieved on the top. However, if an organization meets its customers’ expectation of the most demanding customers it will definitely fulfils the expectations of the rest of the segments. In fact customer satisfaction and customer retention both are continuous processes and should be carefully managed by anticipating what the customers expect on the next stage.  
On retaining customers there are three dimensions which an organization should work to and these are as: firstly, Psychological comfort associated with the processes in order to develop a strong long-term relationship. Secondly, Functional value it provides to the customers through product and value-add services like reliability, quality assurance, economic value, and degree of product and service variety. Third and last one Structural linkage with the customers through a customer database which basically rely on the organization’s information system.
But unfortunately many organizations are weak enough in its customer’s database and so the relative business processes to obtain customer retention and satisfaction. From customers perspective the most important thing in the customer care process is the corporate culture of the organization and its value while on the other hand from organization’s perspective it’s actually the organization’s responsiveness and professionalism toward the customer care approach.
Other important parameters for both organization and customer are the quality obsession means doing the right for the first time. It creates the functional value for the customers and act as a predetermined performance standard for conformance for the organization to identify the failure rate. One more crucial feature is the proactive innovation which means the anticipating the customers’ needs and wants for the next level and try to fulfill the customers’ demands through best approach. Organization should ultimately focus on the market-base loom so that everyone caters according to his/her values and priorities.

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