CUSTOMER SATISFACTION

CUSTOMER SATISFACTION –

to measure the effectiveness of Organisations

There is a correlation between successful, valuable and very profitable organisations and Customer Satisfaction. These valuable organisations deliver world class customer experience and hence create an everlasting value for their customers’ vis-à-vis their peers.

Repeated research and Work in Customer Satisfaction space by various think tank, independent bodies, academics, corporates etc, too validate this rationale. This also explains the reason as why mission/vision of many organisations emphasise on customer satisfaction.

Customer Satisfaction is easier said than done. And the ground reality is that despite management encouraging their teams on delivering superior customer service and enhancing customer experience, actual delivery on ground, across various touch points and stages of customer lifecycle is often erratic.

To deliver a superior Customer Experience consistently which enhances the Customer Satisfaction, Organisations need tremendous operating rigor in integrating people, process and technology with product & service channels. Organisations need to workinto a well-oiled smooth operation without siloes. And also is imperative that Organisations have a system/process which not just delivers a good customer experience consistently, and simultaneously welcomes, solicits and leverages customer feedback & even complaints- to drive product and process improvements & innovation continuously. 

Organisations thus should not just measure Customer Satisfaction, but recognise the same to be as important as sales or top/bottom line performance. After all while sales/profits indicate, what has already been done in the last year/quarter (i.e. is a lag indicator), customer satisfaction measures & scores can be an important lead indicator of future. Customer Satisfaction can be a lead indicator because if customers are satisfied – there is high probability that sales will be good in future, and converse is also likely. Besides for below par satisfaction measures the organisation will need a course correction with respect to strategy or operations/deliverables in process or product

Hence, today’s time and challenges need organisations to look beyond the classic framework of working for shareholders and rather should work for Customers/Users.

1.    customers & users

2.    employees

3.    shareholders

If customers, and users are not looked after – the needs of the other two stakeholders (i.e. employees and shareholders) is unlikely to be met. There is increasing imperial evidence that thanks to internet, mobile & vastly easier access to information, a “power shift” has taken place with customers, users & citizens having become more powerful and we are now living in the age of customer/user experience. 

Therefore, in the performance dashboard of the organisations – Customer Satisfaction should be recognised as the #1 effectiveness measure – as all other measures are lag indicators