How Will You Define Management And Customer Satisfaction?

Quality and productivity are two related paths to customer satisfaction, which is the ultimate goal and the real test of any organization's performance. Unfortunately, many businesses fail the test, according to a comprehensive study of customer satisfaction conducted for the United States of America's government. About one-third of all households reports having been dissatisfied with a purchase, but many don't bother complaining because they don't think it's worth the trouble. Moreover, many who do complain are not satisfied with the response. Through customer interviews, questionnaires, and other means, managers need to uncover what customers expect so that they can see how their products measure up.

When customers are dissatisfied and when they receive unsatisfactory responses to their complaints, they defect to competitors. Over time, the potential revenue loss from defections can be considerable. On the positive side, the survey showed that understanding and responding to customer dissatisfaction can dramatically increase a company's market share and profitability. Of course, customer satisfaction isn't limited to the for-profit sector; not-for-profit organizations must also be concerned about customer satisfaction because their future vitality is threatened when customers are dissatisfied and seek other alternatives. To start, managers need to understand how product value relates to customer satisfaction.