Customer Satisfaction Management
Article Index
Customer Satisfaction Management
Expert Opinion
Survey and Research
Example Cases
Measure and Evaluate
Summary of Best Practices
Words of Wisdom

Measure and Evaluate

It is important to measure customer satisfaction because a satisfied customer is more likely to repurchase or to recommend an organisation to friends and colleagues. A study commissioned by Xerox found that very satisfied customers were six times more likely to repurchase a product within the next 18 months than a customer who was simply satisfied. Customer attitudes and behaviour should also be monitored, for example, are they sufficientl satisfied to:

  • repurchase or will they perhaps try a competitor next time?
  • recommend your organisation to others?
  • be willing to pay a price premium for your products or services?

by identifying the drivers of customer satisfaction and loyalty. It is important to note that when determining customer satisfaction, a customer’s perception of performance is often just as important as the actual performance of an organisation. Even if an organisation’s performance is of a high standard, customers may perceive it as being no better than competitors and might express low customer satisfaction. The importance that customers place on various dimensions of performance must be understood. Organisations need to excel at the things that matter most to customers. There is little benefit in being great at the things that do not matter to customers.
Customer surveys are the most popular method used to measure customer satisfaction. [15]
The following provide some simple ideas on how customer service management programmes can be assessed:

Customer Expectation of Price, i.e. the customer’s perception of the value of a product or service. This measure provides an input into the calculation of product/service value, and is commonly collected using market research.

Customer – Loss, i.e. the numbers or percentage of customers lost over a given period. This provides data for the analysis of customer satisfaction.

Customer Loyalty, which may be calculated using an aggregation of loyalty measures such as repeat purchases, numbers of different products purchased, and relationship duration. This may be presented as an index and used in conjunction with other leading measures—such as customer satisfaction—to predict market trends and assess current organisational performance.

Customer Relationship – Duration, i.e. the average duration of customer relationships or the duration of relationships with key customers. This measure can be used to assess customer loyalty.

Customer Satisfaction – Financial Value, i.e. the increase or decrease of revenue against percentage customer satisfaction variations. This measure quantifies in dollars the impact of variations in customer satisfaction. This information may be used as an aid in strategy development processes.

Customer Satisfaction Index (CSI), which is calculated using an agreed standard series of weighted measures or indicators. A key benefit of CSIs is that they represent a uniform and comparable system of measurement. Values derived from standard models are frequently published to facilitate systematic benchmarking against other organisations.


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