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EVOLUTION OF THE CONCEPT “CUSTOMER SATISFACTION”.

Cherkasov P.

According to classic definition, Customer Satisfaction is a general assessment of experience of companies’ customers on purchasing and using of products or services provided by these companies.

If in 1970’s the opinion existed that quality control was the main key to success on the market, 80’s and 90’s main part of companies and management “gurus” in the world began to transfer their attention on the quality of their work with customers, his satisfaction and loyalty. To satisfy customer requirements and thereby to keep him is significantly cheaper than spend human and finance resources for attracting new customers. Now the most top-managers of companies are convinced of it.

Some examples from world practice:

  • In 1994 Juran Institute* carried out survey and cleared up that 90% of top-managers from more than 200 most large US companies shared opinion that the Customer Satisfaction level’s increasing leads to increase in business profit and market share.

*Organization founded by J.M.Juran – one of “guru” of quality control who in 1937 introduced in broad practice known widely principle “Pareto”.

  • In the same 1994 in other research with 124 US companies participation it was shown that 75% of companies mention Customer Satisfaction in their corporate missions.

However it is not enough to change accents of management efforts. It is necessary to construct clear chain of activities from production quality control through customer satisfaction to their loyalty increasing. And as a result to increase in financial results of business.

This is one of examples how this approach was realized in practice:

  • In 1996 Volvo passed 23 its competitors after realization of the Program of Customer Satisfaction (J.D. Power IQS research). In 1998 Volvo became one of the most profitable automobile companies in Europe developing this Program.

Today orientation on work with customer is a key sign of the effective company management system. Not for nothing customer satisfaction is a main component and necessary requirement at establishment certification under the standards of modern system of quality control ISO-9001.

Research programs of customer satisfaction level decide two main tasks: information and communication. Firstly, they submit necessary information about needs, requirements and expectations of customers, and also about how well this company satisfies these needs (informational role). Secondly, the fact itself of carrying out of these programs bears positive signal to customers that their interests and needs are not without attention and are considered seriously (communicational role).

In additional it should be noted that the company imagination of itself and of its work with customers not always coincides with real views of its customers on the company itself. It is like with your own voice. We never know how our voice sounds. And only after recording it on audio recorder and hearing it we find with surprise how we sound in reality.

That is why the help of independent consultant is so necessary. The role of consultant is to collect most objective information about company work from customer point of view and to submit independent assessment of key problems in existing customers’ relations.

Programs of Customer Satisfaction assessment allow to define not only the level of this satisfaction. They give the opportunity to distribute company resources by the most effective way so to increase Customer Satisfaction and Loyalty in the shortest time. Thereby these programs become the effective management tool for getting extra income.

It is important to remember that no one even the most effective assessment system cannot take decision for anybody. It only submits information and recommendations using which the management can increase successfully the factors of your company work effectiveness.

To make these programs effective in reality this management tool would be integrated into company everyday business. All employees within the company on all management levels should share these views, realize the significance of these procedures and take active part in realization of taken decisions with orientation on the task of increasing of Customer Satisfaction and Loyalty level.

 

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