Thinking about staying relevant in a highly competitive market is synonymous with achieving customer satisfaction. Without this, positioning is a fantasy.
This is why the issue of "customer satisfaction" is a priority on the agenda of senior management in every organization.
Customer satisfaction is
"a person's mood level resulting from comparing the perceived performance of a product or service with their expectations" Philip Kotler.
And this state of mind is the source of many benefits for the company, which can be grouped into three main categories.
a. Repeat purchases.
Satisfied customers tend to repeat their purchases. This defines a concept of loyalty and allows for the sale of the same or new products with each interaction.
b. Word of mouth.
Customers motivated by positive experiences feel the desire to communicate them, and it is estimated that they do so to three to four people close to them. Clearly, this is a benefit of free promotion with the added emotional contribution of the trust that the recipients have in the sender.
c. Positioning.
Satisfaction creates a monopoly relationship between the customer and the company, leaving competition aside.
It is easy to see that a policy focused on "customer satisfaction" leads to higher sales volume, greater free promotion (which also means higher sales from new customers), and growing market share.
To achieve this much-desired "satisfaction," it must be considered that it is made up of three basic aspects:
a. Customer expectations. It is what he imagines he will get, and these are based on:
• Desires based on personal imagination regarding his own idea of satisfaction.
• Benefits promised by the company.
• Benefits promised by the competition.
• Past shopping experiences.
• Comments and opinions from third parties.
Expectations can work for or against the company, since they are often compared with what is "actually obtained" and can lead to "dissatisfaction," not because of the low quality of the product or service, but because of what was "expected" of it.
On the other hand, it is not useful to significantly reduce "customer expectations," as this can lead to low demand.
This particularity forces companies to maximize control over the expectations they generate in the target market through their communication campaigns. It should always be observed whether these expectations are related to what the customer is looking for.
b. The perception of what has been received. It is what the customer "feels, believes" they have obtained after the purchase.
This point must be analyzed carefully given that:
• It is something that belongs to the customer; it is they who define it, not the company.
• It is linked to the results that the customer perceives from the product and not to the functionality or output of the product.
• It is based on abstract issues that are not necessarily real.
• Its definition combines socio-cultural aspects and the influence of the environment.
• The customer's mood alters their perception.
c. The degree or level of satisfaction. Once the purchase has been made, every customer reaches a level of satisfaction that can be classified as:
• Satisfaction: What they perceive after the purchase matches their expectations of what they were going to receive.
• Dissatisfaction: What they perceive does not match their expectations.
• Complacency: What they receive is better than expected.
The importance of determining the degree of satisfaction is that it defines the future actions of that customer. Dissatisfaction leads to a search for another supplier, generating a propensity for better offers; then comes change. Only complacency will develop loyalty to the company.
Therefore, the most appropriate strategy is to generate expectations in line with what the customer expects and then provide an experience that exceeds those expectations. This will have a positive impact that will promote the desired satisfaction.
Thus, the path to follow is clear. However, when I raise this issue with my clients, I find that they believe that in order to achieve greater satisfaction, they need to lower their prices, which means they have less income and are unable to invest in order to achieve the stated "satisfaction."
Remember—as we have seen in many of my articles—that price is not the most important variable for the customer; it is only one of many that they consider, and it is more relevant when the other attributes have less impact. Do you only buy the cheapest?
Customers buy based on the lowest price but in relation to the benefits they obtain. It is the cheapest price, but in relative terms; that is, when the benefits are the same, the lowest price is chosen, but when these are important, the price—whatever it may be—is relegated in favor of the value that the customer places on what they are really looking for.
A policy of high "customer satisfaction" cannot and should not be at odds with the company's profitability. Economic profit is essential for the continuity of the company, as it is the source of future investments, and when these do not exist, the company will lose market share and close.
Consider that a company's true capital is its customer base, so the goal should be a portfolio of "satisfied" customers.
Analyze your portfolio and you will see the path you have yet to travel. Talk to your customers and ask them to rate their satisfaction on a scale of 1 to 10, where 1-3 is Poor; 4-5 is Fair; 6-7 is Good; 8-9 is Very Good; and 10 is Excellent.
Then ask them to do the same but with their expectations before the purchase, with 1-3 being Low; 4-6 Average; and 7-10 High.
If you subtract the satisfaction score (perceived performance) from the value obtained from the expectation, you will get the "Customer Satisfaction Rating." This will give you negative, positive, or neutral values, and this is the traffic light that will let you know whether or not you should make decisions about it.
Don't forget that the future of your company and your own depends on the degree of "customer satisfaction"; anything that is not linked to achieving this is distancing you from success.
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