customer satisfaction
Learning Objectives:
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Specification:
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4.4_customer_satisfaction_starter_activity.docx | |
File Size: | 36 kb |
File Type: | docx |
case_study_customer_service.docx | |
File Size: | 17 kb |
File Type: | docx |
Question: Why do you think customer service is so important?
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If the experience a customer receives is positive, there is a likelihood that the customer will use the business again. It will be a positive experience if the customer feels that their expectations have been met and exceeded. Getting customers and hanging on to them is an important issue for many businesses and high levels of customer service can be important in achieving these aims. A business must be aware that no amount of price discounting will get customers to buy from the business unless they are satisfied with the rest of the service.
Key term: CUSTOMER SERVICE - The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.
Effective Customer Service could be:
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Task: Discuss with your partner the impact of the above. What will it mean for the business in question?
Benefits of Good Customer Service:
- Informs customers about the products (can also mean good advertising)
- Attracts new customers (word of mouth)
- Increases sales revenue and profits (repeat business and higher prices)
- Raises market share
- Gains customer loyalty
Key term: CUSTOMER SATISFACTION - A measure of how much products meet customers’ expectations.
Customer satisfaction must be at the core of every business if it is to be successful. Dissatisfied customers might not buy again from the business. They will also talk about what has gone wrong with friends and colleagues. The reputation of the business is therefore at stake. In contrast, if consumers are satisfied with the good or service, they will buy again or tell other people. This is called 'word of mouth' and is a very important method of promotion for a small business (it is also free). Customer satisfaction is therefore important for the public relations (or PR) of the business.
Key term: REPEAT PURCHASE (OR REPEAT BUSINESS) - orders or sales that occur from customers who have bought the product or service in the past.
Many businesses rely on repeat purchase or repeat business. This is when customers buy time and again from the same firm. There are a number of ways to try to keep customers coming back:
- Cheaper prices
- Easy to use website
- Effective customer service
- Promotions aimed at existing customers