The document discusses the importance of complete customer satisfaction for businesses. It notes that satisfied customers may still switch to competitors, while completely satisfied customers are truly loyal. Achieving complete satisfaction requires understanding customers' needs and delivering superior value. The document then outlines several methods for measuring customer satisfaction and loyalty, including feedback, market research, and analyzing purchasing patterns. It stresses that different levels of satisfaction require different business responses to improve and maintain high customer loyalty over time.

1. By:
Krupanshu Hemani(16)
Shreyansh Kejriwal (26)
Ambarish Kulkarni(27)
Devashree Kumar(28)
Vishesh Saran(58)

2. The gulf between satisfied customers and
completely satisfied customers can swallow
a business……HOW???
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3. Complete customer satisfaction is the key to securing
customer loyalty and generating superior long-term
financial performance
Even in markets with relatively little competition,
providing customers with outstanding value may be
the only reliable way to achieve sustained customer
satisfaction and loyalty
Very poor service or products are not the only cause-and
may not even be the main cause – of high
dissatisfaction
Different satisfaction levels reflect different issues
and therefore, require different actions
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4. There are 2 types of loyalty : true long-term loyalty
and false loyalty
Customers will remain rock-solid if they are
completely satisfied
It is absolutely critical for a company to excel in both
defining its target customers and delivering a product
or service that completely meets their needs
Totally satisfying the members of the targeted
customer group should be a top priority
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5. The Satisfaction Loyalty link
Only completely satisfied customers are the truly
loyal customers
Satisfied customers tend to switch much often in a
competitive market than completely satisfied
customers
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6. The Satisfaction Loyalty link
continued...
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7. How to Listen to Customers
Customer – Satisfaction Indices
Feedback
Market Research
Frontline Personnel
Strategic Activities
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8. Measures of Loyalty
Intent to Repurchase
Primary Behaviour -
recency, frequency, amount,
retention, and longevity.
Secondary Behaviour -
referrals, spreading the word
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9. Apostles and Terrorists
4 categories of customers:
Loyalists
Defectors
Mercenaries
Hostages
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10. Individual Customer Satisfaction,
Loyalty, and Behaviour
Satisfaction Loyalty Behaviour
Loyalist/Apostle High High Staying and
Supportive
Defector/Terrori
st
Low to Medium Low to Medium Leaving or
having left and
unhappy
Mercenary High Low to Medium Coming and
going; low
commitment
Hostage Low to Medium High Unable to
switch; trapped
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11. Using Customer Satisfaction
Information
Critical barometer – how well the company is serving
its customers
Shows a company what it needs to do to increase its
consumer satisfaction level
Understanding what the customers are saying
when they provide various responses
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12. Steps for measuring Customer
Satisfaction
1. Make the measurements of customer satisfaction
and loyalty a priority and to ensure the process is
unbiased, consistent, broadly applied, and be able to
capture and store information.
2. Create a curve by plotting individual customer
responses.
3. Determine the most appropriate strategies for
raising customer satisfaction.
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13. Analyzing the customer curve
Plotting individual customer responses on a curve.
Assessing the satisfaction levels of the customers
Assessing the factors (good/bad) that caused the
curve
Comparing the curve with the competitors
Cross check for false positives, if present.
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14. Determining strategies for
improvement
Scale Level of
Satisfaction
Remark
2-3 Dissatisfied
Provide basic product or basic elements
expected from any in industry
3-4 Neutral
Happy with product. Challenge lies in
ensuring that he does not fall below this scale
4-5 Satisfied
Believes all needs, preference & values are
addressed.
TO maintain them, company must listen to
customers & interpret their say.
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15. Implications of 3 step model &
Analysis
1. Different actions are required to raise satisfaction
levels
2. Order of steps is important.
 For long term survival and flourishing it is
imperative for a firm to understand the relationship
between satisfaction and loyalty for each of its
customers.
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