"Customer satisfaction has become the most widely used metric in companies’ efforts to measure and manage customer loyalty. The assumption is simple and intuitive: Highly satisfied customers are good for business.
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However, the reality has not proven nearly so simple. In fact, we have found that if you look across industries at the correlation between companies’ customer-satisfaction levels for a given year and the corresponding stock performance of these companies for that same year, on average, satisfaction explains only 1% of the variation in a company’s market return.
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And academic research consistently finds that there is a positive, statistically significant relationship between satisfaction and a host of business outcomes such as customer retention, share of wallet, referrals and stock market performance. We ourselves have written numerous articles demonstrating this very fact.
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The problem, however, is that the relationship between customer satisfaction and customer spending behavior is very weak.
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High customer-satisfaction ratings are typically treated by managers as being universally good for business. Our findings indicate, however, that the benefits are not nearly so clear-cut.
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It turns out that the return on these investments is often trivial or even negative. Although we find that improved satisfaction can increase sales revenue, the additional costs frequently outweigh the benefits.
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While customer satisfaction and profitability are not mutually exclusive, they don’t have to be aligned, either. Managers typically have many competing alternatives for improving satisfaction. They could provide a better customer experience or offer more innovative products, for example. Not all alternatives will be profitable. Furthermore, not all customers can be profitably satisfied. Some are not willing to pay the necessary price for the level of service being offered. Others demand a level of service that more than offsets any revenue they provide. The bottom line is that there is no substitute for understanding the profit impact of your efforts to improve customer satisfaction.
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Given that higher satisfaction levels are believed to result in higher customer spending, we might expect a strong positive relationship between satisfaction and market share. The reality for many business sectors, however, is quite the opposite. In fact, research finds that high satisfaction is a strong negative predictor of future market share. [Moi ici: Bom para as PMEs em Mongo, se as tribos são cada vez mais vincadas e apaixonadas... so long Golias]
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The primary reason for this seemingly counterintuitive finding is that the broader a company’s market appeal relative to the offerings of competitors, the lower the level of satisfaction tends to be. Why? Gaining market share typically comes from attracting customers whose needs are not completely aligned with the company’s core target market. As a result, smaller niche companies are better able to serve their customers. Companies with a large market share, on the other hand, must by their very nature serve a more diverse set of customers.
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Should managers not care about customer satisfaction in the pursuit of market share growth? No — they should care. If market share is the goal, then managers need find the right balance between customer satisfaction levels and broad customer acceptance.
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The overriding reason that companies measure satisfaction is the belief that higher scores result in a greater share of a customer’s wallet. The unfortunate reality, however, is that our research indicates that knowing a customer’s satisfaction level tells you almost nothing about how she will divide her spending among the different brands used. As a result, changes in customer satisfaction levels are unlikely to have a meaningful impact on the share of category spending customers allocate with your brand.
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So while satisfaction is important, it does not mitigate the need for sound business strategy and fiscal oversight.
What is clear from our research is that there is not one right way to improve satisfaction. Different approaches are required depending upon the profiles of the company’s customers and the nature of the competitive environment. Moreover, it may even be necessary to accept lower average satisfaction levels in the pursuit of greater market share by appealing to a larger, less homogeneous customer base. This contradicts the message of many programs discussed in the popular business press regarding the relationship of satisfaction (and NPS) to business performance."
segunda-feira, maio 12, 2014
Cuidado com os pré-cozinhados
Uma reflexão interessante sobre "The High Price of Customer Satisfaction".
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A coisa é muito mais complexa do que parece à primeira vista. Um conselho, tenha este artigo à frente quando os auditores da qualidade começarem a levitar com parvoíces de aviário:
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