Few years ago, I needed to enroll my child in a primary school and was checking some schools. I got to one particular school, after talking with their representative and she showed me around the school, everything seemed fine. I decided to enroll my child in the school.
Category Archives: Customer satisfaction
Nov
30
Oct
12
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Nipping customers’ journey to disloyalty in the bud
No organization wants to lose customers. Hence organizations always strive to prevent customer disloyalty. However, to succeed in doing so, it’s essential to first understand how customers become disloyal.
Sep
22
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Understanding value from the customer’s perspective
No matter what product or service you provide, it is the customer who defines value. Hence, to succeed, it’s essential to see value from the customer’s perspective. If not, you will not understand the actual needs of the customer.
Jul
21
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The Cost of Poor Service
Poor customer service creates a leak in your organization, causing potentially loyal customers to slip away. In other words, poor service will cost your organization money. Lots of money. You incur this cost in two ways . . . Your customers won’t come back Your customers won’t recommend you to anyone So where is all the lost money going? 1. Direct loss of sales Have you ever tried to buy something from an organization, and their service became so poor […]
Feb
24
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Making Customers Satisfied is Out of Date
When you provide the right service at the right price, at the right time, and to the agreed-upon specifications, the customer is satisfied. This is the mission of most organizations because they assume that it is sufficient to satisfy customers. But studies conducted on the relationship between customer satisfaction and customer loyalty show that this assumption is deeply flawed. Xerox, for several years in the past, polled 480,000 customers per year regarding product and service satisfaction using a five-point scale […]
Apr
10
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Using Service to Create a Competitive Edge
Many organizations think that the only way to grow their business is to find new customers. But often, the best source for growth is sitting right in front of you: existing customers. Finding new customers aids business growth but here’s an important fact: Studies show that the probability of selling to an existing happy customer is up to 14x higher than the probability of selling to a new customer. See Figure 1. Figure 1 Hence it makes perfect sense to take […]
Mar
11
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Understanding the Service-Profit Chain
The natural concept of chains is that they are as strong as their links. Hence to make a chain strong, the links must be made strong. The service-profit chain is based on this concept. A theory evolved by a group of researchers from Harvard University in the nineties, it dissects the levers that translate good service into profitability. These levers are represented by links in an eight-link chain as depicted below. The service Profit Chain The service-profit chain works this […]
Mar
7
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One question you need to ask your customers
When you deliver the right service at the right price, at the right time, and to the agreed-upon specifications, it does not lead to customer loyalty. This is because you’ve only made the customer satisfied and mere satisfaction does not lead to loyalty. In fact, independent studies confirm that customers who are merely satisfied are still very likely to purchase from another source. However, that is not to say that there is no correlation between customer satisfaction and loyalty. There […]
Jan
19
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Starting the year with a clear service concept
The service concept is a shared understanding of what the organization provides and what the customer receives. Although it’s a simple idea, the service concept is powerful and can be used as a central tool in the design, delivery and improvement of services. In fact, concepts are what customers actually buy, not the elements of service. For instance, an MBA student buys ‘employability’ from the business school and not the elements of service like lectures, books, and certificate. Similarly, a […]
Jun
14
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The customer satisfaction level that leads to loyalty
When you look at the relationship between customer satisfaction and loyalty, it would seem that it’s linear where a little more satisfaction results in an equivalent increase in loyalty. But that’s not the case. The graph below depicts what the relationship is in practical terms. As you can see, from highly dissatisfied to neutral (relatively happy), nothing much happens in terms of loyalty. Then, as satisfaction becomes more than mere satisfaction and turns into highly satisfied, loyalty increases sharply. What […]
