January 22, 2017

Five levels of customer satisfaction

Customer is king. This idiom has been repeated time and time again by each and every company. In the new world this actually stands true. The company which has the maximum customer satisfaction also has the best chances for growth. This is because if you measure your own customer satisfaction it can help you optimally change your marketing as well as operating strategy.

The satisfaction of a customer with the purchase is the key to customer retention. By implementing measures which keeps the customer satisfied, you ensure that the customer sticks to your brand. He does not shift easily to the competitor. With higher customer satisfaction, the customer is likely to

a) Rebuy your product

b) Upgrade regularly

c) Spread the word about your product

d) In some cases, he can also give a positive feedback as well as profitable ideas for the company.

5 levels of customer satisfaction

The Five Levels of customer satisfaction.

Customer satisfaction of a particular company can also be plotted on a level of 1 to 5. Level 1 stands for least customer satisfaction and the last level (Level 5) is of customer delight which shows maximum customer satisfaction.

1) Level one – A level one customer is a customer who is not satisfied with the company. In this case the satisfaction of customer is at minimum. The customer is likely to leave the company and never return. He can also badmouth the company. There are several reasons in which a customer might be converted to a level one customer such as the deliveries not happening on time, the service is not proper, or over commitment being given by the sales force.

Lack of features in the product generally does not result in a level one customer satisfaction. This is because if the features were lacking, the customer would not buy the product at all. Thus when there are a high number of level one customers, you can understand that the problem is from within the company and not from outside.

Level 2 to Level 4 –  Most of the companies fall in this level. This is because this is the average level of satisfaction of customer. In this case the customer might be happy with the brand but there is no guarantee that he will stick back with the brand. The customer does not badmouth the company but at the same time he does not also spread a positive word about the product. The customer would not be brand loyal but he would be ready to switch brands whenever there is a new offering the market. Thus these are not the customers on whom you can rely for a long term. Obviously each and every company will have at least 60% of the customers who fall in this level of customer satisfaction.

5) Level five – Level five of the customer satisfaction level represents a group of customers who are highly satisfied customers. They are unlikely to shift the brand or the product and they have a high emotional bond with the brand. Take shoes such as Adidas, Nike or Reebok. These are companies which try to increase the number of highly satisfied customers as much as possible. This is because the highly satisfied customer is likely to spread a positive word of mouth.

Customer Delight –  One variant of high customer satisfaction is customer delight. This happens when a particular company exceeds customer expectations. Thus the best thing a company can do is provide services such that the customer is delighted and this ensures that you reach the level five customer satisfaction.

The important thing over here is that the reason for customer satisfaction may very. You should know the factors responsible for customer satisfaction in your product. Say for example you had a manufacturing product. Naturally the logistics, good quality of service and the features in the product would result in customer satisfaction. If your service is done within the first 24 hours it will result in customer delight which is the topmost measure of customer satisfaction.

This is why the bigger manufacturing companies have been able to show growth over a consistent period of time. This is because they give service which results in customer delight. On the other hand if you have a service product then you need to understand customer requirements accurately. Timely delivery of service is another factor which is very important for customer satisfaction.

Thus whatever be your product, reaching the correct level of customer satisfaction should be the goal of your organization.

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About Hitesh Bhasin

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