Measuring customer satisfaction is far too simplistic!

Customer satisfaction in itself is not an indication of customer loyalty

Customer satisfaction with SEDLÁK & PARTNER


“Analyzing and measuring customer satisfaction always implies a look back to the past and thus means – metaphorically spoken – to have a glance into the rear view mirror. Customer loyalty, however, is a future demand and thus a view through the windscreen. It includes the ability to anticipate the most important insights and results.”

Professor Dr. Armin Töpfer, Dresden University of Technology

What made the difference compared to other offers?

Specific identification of the current and future threshold levels and additional values as well as specific measurement of the degree of fulfillment!

Problems with the traditional concept of customer satisfaction measurement

When using customer satisfaction values to review strategic decisions and their operational implementation, fundamental problems arise:

  • Satisfaction is a difficult to define and instable concept; additionally, it could be very subjective and shaped by external influences
  • Experience shows that generally high satisfaction values are assigned not least because expectations are often adjusted downwards subsequently and unsatisfied customers refuse to participate in standardized surveys
  • Usually, a customer is already satisfied when he doesn’t have any substantial complaints. However, it does not imply that the customer is also loyal. Minor dissatisfaction could already make him switch to the competitor
  • Customer satisfaction analysis normally doesn’t allow to differentiate between relevant long-term factors and irrelevant temporary factors. For instance, short-term price discounts promote customer satisfaction to the same extent as a long-term customer value orientation of a company. However, only the latter achieves sustainable customer loyalty

  • Customer satisfaction survey results often provide only generic, operationally less tangible recommendations
  • Good satisfaction values can easily lull company leaders into a false sense of security
  • Customer satisfaction analyses evaluate company performance focusing on the past but are only indirectly relevant for the future and only when external conditions remain unchanged
  • Objective factors provide an overall picture of the company performance, but don’t allow to identify customer- or customer group-specific satisfaction values
  • The natural focus is to please each dissatisfied customer, although they are not always part of the relevant target group

Threshold levels and differentiation potentials of customers decide about customer loyalty and business success

Abb. 1 Englisch

Figure 1: Lever for customer retention


  • The threshold level and potential analysis allows the long-term orientation of a company towards factors that are decisive for the business success
  • Additionally, by measuring the degree of fulfillment, the current orientation of the company can be determined. This largely corresponds to the function of the customer satisfaction analysis – however, based on solid factors that are relevant for the business success

Innovative customer segmentation with identification of threshold levels and potentials

Only those who know and accurately differentiate the diverse customer requirements and potentials are able to utilize business potentials in a targeted way and to deploy internal resources efficiently.”

Markus Peterhänsel, Chief Consultant Strategy Development SEDLÁK & PARTNER

With the concept of the Innovative Customer Segmentation incl. the identification of threshold levels and potentials, we are able to deliver the following output in just 12 weeks:

Figure 2: Benefit Innovative Customer Segmentation SEDLÁK & PARTNER

Figure 2: Benefit Innovative Customer Segmentation

Within the context of the implementation, smart, web-based solutions are applied offering the following benefits:

 

Figure 3: Advantage of web-based solutions

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