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Leading companies recognize the importance of listening to their customers as part of their strategy to manage satisfaction. Customer satisfaction indices are based on surveys

Leading companies recognize the importance of listening to their customers as part of their strategy to manage satisfaction. Customer satisfaction indices are based on surveys of customers, and the results plotted over time to reveal changes in satisfaction levels. The first stage is to identify those characteristics (choice criteria) that are important to customers when evaluating competing products. The second stage involves the development of measurement scales (often statements followed by strongly agree/strongly disagree response boxes) to assess satisfaction quantitatively. Customer satisfaction data should be collected over a period of time to measure change. Only long-term measurement of satisfaction ratings will provide a clear picture of what is going on in the marketplace. However, the marketplace is changing and use of new data-capture methods and technologies means that some customers are more aware of how their data are being used. Consequently, customers must see so me benefit from the use of their data if an effective relationship is to develop. Furthermore, customers (both satisfied and dissatisfied) are making themselves heard across the web, via Facebook, Twitter, so that understanding the digital arena is critical for marketers. Marks & Spencer discovered via Facebook that their tiered pricing of bras caused much dissatisfaction among their customers. The critical role of listening to customers in marketing success was emphasized by SirTerry Leahy, former chief executive of Tesco, the successful UK supermarket chain, when talking to a group of business people. \'Let me tell you a secret,\'he said/the secret of successful retailing. Are you ready? It\'s this: never stop listening to customers, and giving them what they want. Im sorry if that is a bit of an anticlimax... but it is that simple.\' Marketing research can also be used to question new customers about why they first bought, and lost customers (defectors) on why they have ceased buying. In the latter case a second objective would be to stage a last-ditch attempt to keep the customer. One bank found that a quarter of its defecting customers would have stayed had the bank attempted to rescue the situation. Kwik-Fit, the car repair group, places listening to customers high on its list of priorities. Customer satisfaction is monitored by its customer survey unit, which telephones 5000 customers a day within 72 hours of their visit to a Kwik-Fit centre. A strategy also needs to be put in place to manage customer complaints, comments and questions. A system needs to be set up that solicits teedback on product and service quality, and feeds the information to the appropriate employees. To facilitate this process, front-line employees need training to ask questions, to listen effectively, to capture the information and to communicate it so that corrective action can be taken.

In addition, companies must make provision to find out what their customers are saying online. Companies can listen Consumers can write blogs, which can contain positive and/or negative comments about companies and brands. A blog is a personal commentary, a collection of thoughts and comments, which creates a kind of personal diary on the Internet. Companies can also launch websites to solicit customers\' ideas. Dell did this after it received a flood of criticism over poor customer service, while also reaching out to online bloggers. The feedback led to a customer services overhaul and a fall in negative buzz. Finally, Google listens to customers by releasing most products in \'beta\' (which means they are not quite finished), allowing users to suggest improvements. This approach has led to the refinement of such products as Google News, Gmail and the Chrome browser. Questions: 1 Explain why feedback from social media sites can be more accurate than surveys. 2 What strategy would you suggest for a business in handling customer complaints, comments and questions? 3 How would you explain the blog search engine siteTechnorati to a friend and the benefits it offers?

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