Customer Satisfaction and the Service Business

The relationship between customer satisfaction and success of a service business is a direct one. Customer satisfaction measurement, however, is a much more complex matter. Customer satisfaction is a qualitative assessment of the services you provide, and therefore it is a surrogate measure of the value of your services to your customers.

The measurement method you choose can make makes a difference to the results obtained. Your motivation for measuring customer satisfaction will drive both your methodology for collecting the data, and what you do with it.

Client satisfaction data can be collected for:

• Accountability

• To use to influence or justify

• Continuous improvement

Be clear about why you are collecting satisfaction data; to deliver a good report card (a primary motivation of units in a large corporation or public sector entity, or for businesses which are required to meet certain standards), or to diagnose and manage continuous improvement.

For a good report card, measure general satisfaction using a once-a-year survey. Every business wants a good report card, but that will not help you improve your performance. To obtain useful data you need to measure client satisfaction with specific attributes of your service at the time of the transaction.

Some tips:

• As a psychological construct satisfaction is peculiar - results are always negatively skewed. The good news is that more people report being satisfied than dissatisfied. The bad news is that if you're getting less than a 95-98% satisfaction rate, you need to investigate, identify and fix the problem. And there's always the possibility that high satisfaction may indicate low expectation. Are your customers satisfied more because your competition delivers poor service and thus anyone who provides pretty ordinary service will get good customer satisfaction feedback?

• The method you use for collecting satisfaction data can influence the results

• Oral administration of satisfaction questions "improves" satisfaction by as much as 12% compared with written questionnaires ? wonderful if you're looking for a good report, but something to watch out for if you're looking for information about in what areas you need to lift your game

• Clients report higher levels of satisfaction if you frame the question positively than if you frame the same question negatively

• Measurement at the time a service is delivered more accurately, reflects level of satisfaction and avoids the halo effect of one particularly good or spectacularly bad experience

• Interviews deliver more complete and revealing answers but are expensive and dependent on interviewer skill and impartiality

• Focus groups may not accurately represent the entire customer group

Finally, never forget that emphasis on satisfaction of current customer demands can inhibit the development of innovations that can meet the future, or current, but unstated, demands of those same customers. That's why you need to keep talking to them.

Try the one question survey: pick a question for a period of time and include it in every conversation you have with a client.

Jennifer Cram is a sought-after civil celebrant based in Brisbane, Queensland, Australia. She has also has 30 experience as a manager in the public sector and has published numerous papers on measuring service performance. For more information http://www.jennifercram.com and http://www.alia.org.au/~jcram/

Copyright © 2005 Jennifer Cram. You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated.

---

Can Three Words In Websters Dictionary Be The Key To Customer Loyalty?

Are you concerned about customer loyalty? Are your customers so... Read More

Your Actions Tell Your Clients How You Expect To Be Treated

There is a widely accepted principle of human behavior that... Read More

Customer Satisfaction Is Your Business

Regardless of what business you are in - you are... Read More

Committed To Your Customer? Prove It When They Complain!

Businesses like to brag in their advertising about quality of... Read More

The Number 1 Rule for Businesses - Be Professional

Have you ever walked into a store and things looked... Read More

And The Difference is... Attitude

I returned a rental car at an airport yesterday. As... Read More

Customer Conversion Mistakes That Will Cost You

The following are common mistakes that Sales Managers and Owners... Read More

How to Deliver Exceptional Customer Service

Having been in business a number of years, I'm amazed... Read More

The History of CRM -- Moving Beyond the Customer Database

Customer Relationship Management (CRM) is one of those magnificent concepts... Read More

Dont Be Afraid To Give Problem Customers The Boot

Q: In a recent column you made the point that... Read More

Hook Me Up With A Human

Oh, what has happened to the carbon-based organizational interface? Many... Read More

Customer Service and The Human Experience

Historically, customer service was delivered over the phone or in... Read More

CEM Can Improve Customer Loyalty

'A 5 percent increase in customer retention increases profits by... Read More

What Every Employee Should Know About Putting Positive Phrases Into Customer Service

If you were a customer on the telephone with a... Read More

Marketing as a Spiritual Practice

"Marketing as a spiritual practice." It sounds contradictory ? how... Read More

Debt Elimination Scam

May people these days have a problem with mounting debt.... Read More

It?s Customer Service Stupid: Delivering Customer Service Training That Sticks

"Society is always taken by surprise at any new example... Read More

Poor Customer Service - Are Your Customers Driving Away Other Customers

Every customer you have is a word-of-mouth advertiser for you.... Read More

Whats The Customer Service Buzz About Your Business?

If you're a regular reader of my column you know... Read More

What Every Employee Should Know About How to Win the Loyalty of Customers

Dr. Michael LeBoeuf, in his cassette album entitled, Win... Read More

Top Ten Strategies for Delivering 5-Star Customer Service

Customer satisfaction is valuable, but customer loyalty is priceless. In... Read More

Restaurant Owners ? How Important are People Skills?

You are serving great food. Your establishment is new, spotless... Read More

What To Do When Youve Blown It

It's bound to happen sooner or later ? yes, even... Read More

Listening to Customers - 5 Tips

In a strange juxtapositioning of articles, this month's UK '... Read More

Post Office, Incredible Lady Postmaster

There are two Post Offices that I routinely visit. One... Read More

How to Easily Increase Your Profits

Do you remember the last time you went into a... Read More

Outsourcing: The Unspoken Costs

Outsourcing seems to be the new-new thing and approximately 50%... Read More

Making Customer Satisfaction Surveys Work

Why bother? Good customer service is the life blood of... Read More

Doesnt Anybody Work Here? Nametags Impact Employee Communication

Walmart was the first business to require all its employees... Read More

Customer Neglect

What have you done for your existing customers lately? Probably... Read More

Revealed ? A Simple Formula For Success! Exceeding Expectations

Delight = Customer Expectation plus 1. This was the simple... Read More

Profit from a Customer Service Recovery Program

A client recently said to me: "Most days things seem... Read More

Dealing with Disgruntled Customers

No matter how hard you try, in business you simply... Read More