Homework Question on Customer Satisfaction
- To properly evaluate a marketing strategy and the way it performs, it is essential to measure market activity using marketing metrics.
- Your task is to define customer satisfaction and the measures (metrics) associated with customer satisfaction. Discuss the benefits of these measures to organisations. You are required relate your assignment to a personal experience; apply and discuss the marketing metrics on customer satisfaction to this experience.
- Give this experience a context by choosing a company (Australian or overseas) and suggest how the marketing manager might use the defined measures (metrics) to improve customer satisfaction in their organisation.
- You are expected to cite academic and professional papers in your assignment. Of these citations, at least 5 references must be peer reviewed journal articles.
Homework Answer on Customer Satisfaction
Customer satisfaction is an indication of the level of utility a customer achieves from consuming a product. Therefore, it means that customer satisfaction determine the success of a business. In a situation where the market is very competitive, business success will be wholly dependent on the level of customer satisfaction. Customer satisfaction motivates the company’s employee’s performance indirectly. Employees are more satisfied when the customers are comfortable with the company’s products.
Some of the reasons why customer satisfaction is important to an organization includes: differentiating a company amongst other companies in the market, it helps in the reduction of customer churn, enhances the image of the company, helps to retain existing customers and attract new customers, it helps to increase the value of customers lifetime leading to customer loyalty and repurchase intentions (McDonald, Mouncey and Maklan, 2014).
Satisfied customers repurchase goods and services from a company eventually leading to loyalty. This increases the firm incomes and customer relations. Satisfied customers of an organization remain loyal despite a competitive market place to win them. This improves the firm’s competitive advantage in the market.Another benefit is the reduction of the customer churn. This means that the quality and quantity of the goods and services produced must conform to customers’ expectations.