What leads to satisfied customers?

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What leads to customer satisfaction? Here's a simple formula: CS = PQ/E. That is, Customer Satisfaction is equal to Perceived Quality relative to Expectations.
Quality: This refer~tQ th~product or service we deliver. In the fIrst place, that means functionality, accuracy, and reliability of what we do. That much is obvious, and it's the main focus of our activities-to provide a high-quality set of products or services.But there's more to it. From the customer's perspective, Quality includes the entire range of experiences that take place between the company and the customer. It covers everything from how we get information (easy or diffIcult?), to placing an order (simple or confusing?), to arranging for delivery (on time or delayed?), to contact with our employees (friendly and helpful, or not?), to billing (accurate or mistaken?) and more. One big lesson for companies? Understand the full range of customer touchpoints, and fmd out which ones are most important in driving overall satisfaction. For example, one company I work with takes great pride in the high quality and functionality of its products, but its customers are often unhappy because of errors on the bill.Improving quality at all touchpoints is important, but many companies overlook the other two elements:expectations and perceptions.
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Expectations: Set the criterion by which customers will evaluate a product or service. If a company sets expectations too high, it will be very hard to please customers. But the answer is not to set low expectations, because then it may be difficult to attract customers in the first plaee! It's vital to set clear, accurate and reasonable expectations-sufficiently high to attract customers, yet at a level that can be achieved.


One big lesson for companies?
Understand the full range of customer touchpoints, and find out which ones are most important in driving overall satisfaction

~Oi.uti. g outthe levpany I know is "'" '; ,,~. ~ tet' ): One compride themselves 011 h O. . ~l.'" G. ~ materials. They are reliably in stock but . . ~ I e rang f products that preciate how gOod th~ comp cUallsto~ers not fully apcom h Y e YIS. '·lI~B th pany as never communicated 't . ecause e tomers. It never shaped customer I s perfO!bance to custhem, for example, that it has a 98% ~erceptIOn. by telling Here's a recent example. Not l~ m-stock ratn. .tIn:0ugh security at a major internati ng ~gwww.imd.ch).by where he works with leading companies on questions of strategy and organisation. He is the author of 'The Halo E... ed' wJzere he debunks 'P b;ness 77'l. ·tlzs
V .... hat leads to customer satisfaction?
Here's a simple formula: CS = PQ/E. That is, Customer Satisfac tion is equal to Perceived Quality relative to Expectations.


Quality: This refer~to the rod~ct or.' ~., the fIrst place, that means functIonality, ace . an re ability of what we do. That much is ob . .:s . : e main focus of our activities-to pro.ide a "-qaar:.ry set of products or services. .But there's more to it. From the customer's pe pecuve, Quality includes the entire range of experiences that ~e place between the company and the customer. It c~)Vers e\ erything from how we get informati?n (easy or difficult?), to placing an order (simple or confusmg?), to arrangmg for delivery (on time or delayed?), to cont~c~ with our employe~s (friendly and helpful, or not?), to billmg (acc~ate or mIStaken?) and more.

One big lesson for compames?
Ynderstand the full range of customer touchpoints, and find out which ones are most important in driving overall satIsfaction.

For example, one company I. wor~ with. takes great pride in the high quality and functionalIty of its products, but its customers are often unhappy because of errors on the bill.
Improving quality at all touchpoints is important, but many companies overlook the other two elements:expectations and perceptions.
·
·
·
Expectations: Set the criterion by which custome will evaluate a product or service. If a company sets expectations too high, it will be very hard to please customers. But the answer is not to set low expectations, because then it may be dif· ficult to attract customers in the fIrst place! It's vital to set clear; accurate and reasonable expectatioIl£--::!;ufficiently high to a tomers, yet at a leve . at can be achieved.

- One big lesson for companies?

Understand the full range of customer touch points, and find out which ones are most important in driving overall satisfaction