Customer satisfaction is a term frequently used to measure how products and services provided by a company meet or exceed the customer’s expectation. It is the backbone behind successful enterprises hence it is important for businesses to be able to analyse service quality and customer satisfaction results to determine the actual performance of the said business.
A key component in the loyalty business model states that the ‘quality of product or service leads to customer satisfaction, which then leads to customer loyalty and ultimately profitability’. This model deems that the strength of the business’ and customer’s relationship is determined by the level of satisfaction from the most recent experience and the perceived quality out of it.
In this day and age, the adage that a strong marketing campaign will convert consumers into customers is a thing of the past. Businesses have to work harder to reach out and connect with their customers and address their concerns. With the prevalence of social media, dissatisfied customers are more than likely to take to the web to air their grievances.
Customer satisfaction is a key goal in a business’ sales process. Results from a study conducted by InfoQuest on customer satisfaction spanning across 40 countries found that:
- A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer
- A totally satisfied customer contributes 1.4 times as much revenue as a somewhat dissatisfied consumer
- A totally dissatisfied customer decreases revenue at a rate equal to 1.8 times what a totally satisfied customer contributes to a business.
This clearly demonstrates that the level of satisfaction a customer has with a company’s service has a profound effect on profitability.
Within TÜV SÜD, internationally accredited certification bodies offer services for various management systems. We have extensive experience in auditing and certifying a wide range of internationally recognised management systems. Our experienced team of global experts will guide you through the process, from on-site audits to certification. We will help you to identify opportunities and minimise potential risks. By partnering with us, your company’s commitment to the highest standards will gain global recognition. Beyond certification, we also provide you with periodic feedbacks on ways to improve your existing processes.