Client satisfaction

From CEOpedia | Management online

Customer's satisfaction - is a mental state in which we find ourselves after using a given product. This concept applies not only to end users, but also to those involved in the sale of goods. The consumer can be satisfied or dissatisfied with the choice of product or brand. Customer's satisfaction is a combination of a good product (you mean its quality), its price, proper service and customer service. The consumer is satisfied if he received what he expected, or the purchase exceeded his expectations.

Customer's satisfaction can be graded, because the consumer may be partially satisfied, for example, with certain brand features, while others may not be completely satisfied with it. For example, we can be satisfied with the size of the purchased apartment, but we are not satisfied with its location and decor.

This mental state is extremely important when the customer decides to re-purchase the good. That is why it is at the center of attention of marketing activities. It is thanks to advertisements that consumers have an idea about the product, gain the necessary information about it. The opinions of friends, acquaintances and families about the given well are extremely important, as they influence the decisions related to the purchase of the product and may foster the acquisition of new consumers.

Factors shaping consumer's satisfaction

Whether the customer is satisfied or not many factors determine. They generate not only the satisfaction of the person who acquires the given good, but also the quality, emotions, experience or value. The level of satisfaction, in addition to the actual features of the product, also consists of the nature of the buyers themselves, his expectations and needs. In terms of the subject, all these factors can be arranged in three groups:

  • Concerning the product itself

Here, everything related to the product and its physical, real features will be contained. We are talking here about its quality, packaging, price, functionality, brand, etc. The higher the quality, the more satisfied the customer will be. However, one of the most important features of the product that every consumer pays attention to is the price. Very often it becomes an indicator of quality, so it is important for an entrepreneur who cares about customer satisfaction to pay attention to the price being adequate to the quality of the product.

  • Connected to the customer

In this group will find everything that we can say about the customer when he makes a purchasing decision. First of all, the previous experience of a given consumer and his expectations in relation to the product and service are important. The higher the requirements, the harder it is to satisfy. The individual character traits and personality of the client are also very important. Not without significance is the origin and wealth of the client.

  • Applying to the seller

This group of factors will include the company's characteristics, seller and customer service. First and foremost, the appearance of the store, staff and its character traits become essential - general appearance, empathy, care for good and quick response to consumer requirements, or the ability to make contact. The procedures that the company implements in customer service (e.g. complaints) are also becoming important. All promotions also affect consumer satisfaction. The most important will be attractive price reductions, merchandising at the place of sale, or advertising on television or radio.

Due to the complex nature, customer's satisfaction and the process of its creation, it is very difficult to define. Therefore, during the operation of the enterprise, it is extremely important to get to know the client and the ability to adapt his activities to his needs in such a way as to build his satisfaction.

The function of customer's satisfaction

A high level of customer's satisfaction leads to an increase in its loyalty, which in turn has a huge impact on the long-term financial standing of the company. Because if the consumer is satisfied with the purchase, it is very likely that he will buy our product next time and become our regular customer. The results of research conducted by Lash (1990) and TARP (1986) show that:

  • Among satisfied customers, the average re-purchase rate is 92%,
  • Among the dissatisfied customers who do not report complaints, the probability of re-purchase is 78%,
  • Among customers who filed a complaint but did not receive any response from the company, the probability of re-purchase drops to 46%,
  • Among clients who filed a complaint and received an appropriate response from the company, the probability is 91%, almost the same as for satisfied people.

Consequences of customer's dissatisfaction

The problem for the company are those clients who are dissatisfied, but they do not report this fact, as well as those clients whose complaint has been incorrectly treated. The company loses consumers due to the negative advertisement sent via word of mouth, which can cause large losses to the company.

Examples of Client satisfaction

  • A customer receives a product that satisfies his/her needs and expectations. For example, a customer purchases a new computer and after using it for a few weeks, he/she is satisfied with its performance and the fact that it meets all of his/her needs.
  • A customer is satisfied with the customer service they receive. For example, a customer calls a company with a complaint and is treated with respect, given a satisfactory solution, and made to feel valued.
  • A customer has a pleasant shopping experience. For example, a customer goes to a store and is greeted kindly, receives help from knowledgeable staff, and leaves feeling happy with the purchase.
  • A customer appreciates the value of their purchase. For example, a customer buys a product at a discounted price and is pleased with the amount of money they saved.
  • A customer is satisfied with the product’s quality. For example, a customer buys a car and finds that it is reliable and well-built, giving them peace of mind that their purchase was a good decision.

Advantages of Client satisfaction

Client satisfaction is the mental state of the consumer after using a given product or service. It is important to ensure that customers are satisfied with their purchases as it has many advantages for businesses. The following are some of the benefits of customer satisfaction:

  • Improved customer loyalty: Satisfied customers are more likely to remain loyal to a product or service and are less likely to switch to competitors. This helps to ensure that businesses can retain their customer base and increase their sales.
  • Increased profitability: Satisfied customers often make repeat purchases and may even pay more for a product or service. This increases the profitability of businesses.
  • High customer satisfaction ratings: Customers who are happy with their purchase will often rate their satisfaction on surveys and reviews. This can help to create a positive image of a business and help to attract new customers.
  • Increased word-of-mouth advertising: Satisfied customers are more likely to recommend a product or service to others, which increases the potential customer base. This also helps to create a competitive advantage for businesses.

Limitations of Client satisfaction

  • Customers satisfaction is not always the same for all customers. It can vary based on individual preferences and needs.
  • It is difficult to measure customers satisfaction in a quantifiable way and it is even more difficult to ensure that all customers are satisfied with the same level of quality.
  • The customer's satisfaction also depends on external factors such as the economy, social trends, and the availability of other options.
  • Customer satisfaction can be affected by changes in the product or service offered, the quality of customer service, or the way the product or service is delivered.
  • Companies can be limited by the resources they have available to meet customer expectations, or their ability to respond quickly to customer complaints or requests.
  • Customers may not always be aware of their rights or may not be able to express their dissatisfaction due to language barriers or lack of understanding of the product or service.
  • Customer satisfaction can be impacted by a company’s reputation, which can be difficult to build up and maintain.
  • It can be difficult to maintain customer satisfaction if customer needs are constantly changing or if the customer base is expanding.

Other approaches related to Client satisfaction

The other approaches related to customer satisfaction are:

  • Product Quality - This is the measure of a product’s performance and reliability in comparison to its competitors. A product with high quality will generate a higher degree of satisfaction from customers.
  • Service Quality - This is a measure of the customer service that a company provides. Good customer service will increase customer satisfaction as customers feel valued and respected by the company.
  • Price/Value - This is the ratio between the price of a product and the perceived value that customers receive from the product. Customers are more likely to be satisfied if they feel they are getting a good value for their money.
  • Timeliness - This is the speed at which a customer receives a product or service. Customers are more likely to be satisfied if they receive their product or service in a timely manner.
  • Customer Relationships - This is the way a company treats its customers and how it builds relationships with them. Customers are more likely to be satisfied if they feel they are respected and valued by the company.

In summary, customer satisfaction is a combination of product quality, service quality, price/value, timeliness, and customer relationships. Customers are more likely to be satisfied if they feel that they are getting a good value for their money, the product meets their expectations, and their interactions with the company are positive.

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