Beyond satisfaction: Connecting with customers to maximise … · 2019-10-03 · CONNECTING WITH CUSTOMERS TO MAXIMISE BUSINESS PERFORMANCE measure a company needs to monitor (the

Gina Pingitore J.D. Power and Associates,2625 Townsgate Road,Suite 100,Westlake Village,CA 91361,USA

Beyond satisfaction: Connectingwith customers to maximisebusiness performanceReceived (in revised form): 4th January, 2012

GINA PINGITOREis Chief Research Officer at J.D. Power and Associates, a global market research company. Since joining the companyin 2002, she has been responsible for the scientific rigour and oversight of the design and statistical analyses for allof the company’s syndicated and proprietary studies. During her tenure, Dr Pingitore has developed models toestablish the relationship between various Voice of the Customer measures and business outcomes.These effortshave been published in marketing journals, as well as presented at numerous scientific and business conferences.Before joining J.D. Power and Associates, Dr Pingitore was a practising licensed clinical psychologist and behaviouralresearcher in academia, where she authored numerous articles in professional journals and managed numerousprojects funded through federal grants. Later, she brought her skills to advertising and marketing for a majoradvertising agency as a strategic planner on numerous engagements, including the 2002 Winter Olympics.Dr Pingitore earned a doctorate in psychology from Loyola University of Chicago and a master’s degree inpsychology from Edinboro University of Pennsylvania.

HERB WILLIAMS-DALGARTis Senior Director, Contact Center Practice at J.D. Power and Associates. He is responsible for the operationaloversight and performance of the contact center solutions team, which supports the company’s Call CenterCertification Program, Operational Performance Assessments, Benchmarking Toolkit, Call Center Assessments, andCertified Technology Service and Support Program. Previously, he was director of certifications and solutions for thecompany’s Global Services and Emerging Industries Division, supporting certification and performance improvementefforts for Fortune 500 clients. Before joining J.D. Power and Associates in 1996, Mr.Williams-Dalgart was director ofoperations at The Lovelace Family Limited, a greeting card and gift manufacturer in Colorado. Previously, he was theconference program manager for the University of California, Santa Barbara, where he managed internationalconferences held on the campus. Mr.Williams-Dalgart is a member of the International Society of PerformanceImprovement (ISPI) and Southern California Writer’s Association (SCWA). He earned a bachelor’s degree in English,with honours, from the University of California, Santa Barbara, holds a certificate in screenwriting from theUniversity of California, Los Angeles, and has spent time studying at the Shakespeare Institute in England. He alsoholds a Green Belt certification in Six Sigma.

AbstractIn this slow growth/no growth business environment, many companies make the mistake of followingthree common myths about customer satisfaction: that merely satisfying customers is sufficient togarner improved business performance results; that tracking customer satisfaction scores will helpimprove performance; and that all that is needed to improve customer service results is a ‘silver bullet’.J.D. Power and Associates data indicate that companies must do far more than just keep theircustomers satisfied however — they must truly delight them if they are to achieve the kind of customerloyalty that leads to significant financial results. Additionally, they must do more than simply measuretheir customers’ satisfaction — they must create a customer-focused culture. Finally, companies mustrecognise that meaningful improvements in customer satisfaction are realised not by doing just onething, but by a series of actions that are predictive of customer satisfaction improvements.

Keywordscustomer satisfaction, measurement, best practices, business performance

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PINGITORE AND WILLIAMS-DALGART

INTRODUCTIONIn the past decade, the US economy hasbeen buffeted by some unprecedentedchallenges: the dot-com bust, the housingbust, banking and financial crises, a near-collapse of the US auto industry, and mas-sive layoffs and unemployment. As thelingering effects of the ‘Great Recession’continue, many businesses and consumerscontinue to be anxious about the futureand remain reluctant to hire new employ-ees and spend money. Observers wonderif another recession is imminent or isalready under way.

In the face of so much adversity, manycompanies continue to focus on under-standing and meeting customers’ needs,believing that this is the key to succeedingin adverse times. However, some compa-nies still have not achieved the financialbenefits that they expected and are eitherscaling back or simplifying their customersatisfaction efforts. In this paper, clear,effective guidance on what companiesshould do to strengthen their relationshipswith customers in order to improve busi-ness results in the face of adverse economictimes is offered. By employing these bestpractices and by avoiding some commonmyths about customer satisfaction, compa-nies may avoid costly pitfalls and becomestronger and more competitive.

AVOIDING SOME COMMON MISTAKESABOUT CUSTOMER SATISFACTIONMyth 1: ‘Just satisfying ourcustomers is all we need to do’For decades, companies have made a vari-ety of efforts to satisfy customers as ameans of reaping financial benefits.To thesurprise of some, these efforts have pro-duced mixed results.1–3 So the questionremains, ‘Does satisfying your customersresult in superior business outcomes?’.

The relationship between the level ofcustomer satisfaction4 and various businessoutcomes was examined, including repur-chase, recommendations, growth rates andacquisition costs. Assessment included avariety of industries, spanning both thosethat provide products and those that pro-vide services. Across the board, a strongrelationship was found between the levelof customer satisfaction and demand-sidebenefits such as referral rates, repurchaseintent and, in some cases, price sensitivity.However, it was also found that the rela-tionship between customer satisfactionand loyalty outcomes varies notably acrossindustries. In competitive, high-involve-ment industries where customers havemany choices of service or productproviders, delighting customers is criticalto retention. In less-competitive, low-involvement industries with little or nochoice of service or product providers,customers may remain loyal unless they arevery dissatisfied (see Figure 1).

In short, the pathway to loyalty dependson the nature of the industry, yet in bothhigh- and low-involvement industries, theimpact of delighting customers should not be ignored. Customer retention isstrongest when satisfaction levels are at ornear the highest points, and weakest whensatisfaction is at its lowest point. Withoutfocusing on satisfaction, low-involvementservice providers run the risk of allowingretention levels to slip.

More critical however, may be high-involvement service providers, whosefocus on customer delight must be con-stant and set beyond merely pleasing cus-tomers to garner high levels of retention.In fact, as can be seen in Figure 1, thelargest impact on retention occurs whencompanies go beyond satisfaction, anddelight their customers.

If companies’ goal is simply to satisfycustomers, it’s no wonder many fail to

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CONNECTING WITH CUSTOMERS TO MAXIMISE BUSINESS PERFORMANCE

reap financial benefits. Today’s customersare demanding and price-conscious, andthus are more sensitive to the quality ofthe products and services they purchase orexperience. As a result, merely satisfyingcustomers is no longer enough to gainand retain their loyalty.

To not only create high levels of reten-tion, but also to achieve reliable businessresults, companies must exceed cus-tomers’ expectations and truly delightthem on every level and at every interac-tion, and they must do so consistently.

Understanding brand dissuaders and brandadvocatesThere are notable differences at thebeginning and end of the satisfactioncontinuum in customer word-of-mouthbehaviours. When satisfaction is lowerthan 3.5 on a 10-point scale, customersbecome ‘brand dissuaders’.These customers

broadly share their negative impressions ofa company, frequently articulating theirdispleasure to family and friends.As socialmedia platforms such as Facebook,Twitter and YouTube continue to gener-ate wider audiences, any negativeappraisals posted on these platforms willreach a much wider audience, and atgreater speed.

Conversely, customers who providesatisfaction ratings of 8 or above on thesame 10-point scale become ‘brandadvocates’, that is, they promote thebrand to family and friends in contrastwith their dissuader counterparts. Still,it is at this 8-point mark, past thesatisfied plateau, where company per-formance and business results begin tomaterialise. An example of this is afinding in the J.D. Power and Associates2011 National Auto Insurance Study.5

Customers who provide ratings of 8 orhigher are more than twice as likely to


Figure 1 Cross-industry relationships between satisfaction levels and repurchase intentionSource: J.D. Power and Associates

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advocate or recommend a brand, com-pared with customers who providelower ratings (see Figure 2).

To realise significant business andfinancial benefits, companies must min-imise the number of brand dissuaders inorder to reach a brand advocate thresholdwhere satisfaction reaches the highestlevels and customer loyalty is achieved.

Myth 2: ‘Tracking our satisfactionscores will improve them’While measuring performance has beenshown to improve production efficiency,as shown by the Hawthorne effect,6 thistype of result is unlikely to apply to meas-uring customer satisfaction performance.In fact, recent findings show that cus-tomers actually become less satisfiedwhen they give opinions to a companybut do not see any changes based on thefeedback given. However, when cus-tomers provide their opinions and thecompany takes explicit actions based onthis feedback, customer satisfaction isenhanced.

Therefore, while tracking customersatisfaction is essential, it must also be

acted upon effectively in order to achievedesired business results, with strategies andactions keeping pace with evolving cus-tomer demands. Additionally, companiesmust have a deeper understanding ofwhere they stand relative to their com-petitors. To realise impactful and mean-ingful improvement, companies must notonly know how they compare in the mar-ketplace or with their customers overall,but must also gain insight into how wellthey are doing on executing key perform-ance factors. This detailed level of insight will help companies effectivelyidentify which actions to take to improvethe customer experience.

Myth 3: ‘There is a “silver bullet” thatwill improve our satisfaction scores’Avoiding the first two myths is relativelyeasy, but in today’s difficult financial envi-ronment it can be tempting for companiesto look for the one ‘silver bullet’ thatsolves all their customer satisfaction con-cerns. Unfortunately, there is no singleanswer.

Despite there being a school ofthought that asserts that there is just one


Figure 2 The impact of advocacy: auto insurance exampleSource: J.D. Power and Associates 2011 National Auto Insurance Study

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measure a company needs to monitor (theso-called ‘net promoter’ score), experi-enced industry leaders and academicshave shown there is no single measurethat best predicts or explains businesssuccess.7–9 These findings show that, inaddition to satisfaction and stated advo-cacy, other measures such as customercomplaints, and concepts such as ‘fixedright the first time’, serve as strong predic-tors of various desired business outcomes.

To succeed, companies must move upthe information value chain from simplyprocessing customer data to implement-ing activities and behaviours that influ-ence customer perceptions. Companiesalso must understand that employees atdifferent levels of the organisation usecustomer information to make differentdecisions. For example, middle manage-ment typically make decisions thatdirectly affect business operations,whereas senior executives make decisionsthat affect the strategic direction of theorganisation. It is therefore important todevelop and implement actions that arealigned with the various decisions beingmade throughout the organisation inorder to maximise performance improve-ment. Middle management want to knowwhat to do to improve, whereas seniormanagement want to know what the costis of implementing recommended actionsand what the benefits are of doing so.

It is crucial that companies have a clearunderstanding of the links between cus-tomer behaviour and business objectives.As customers’ perceptions, needs andexpectations evolve, companies must benimble.While it is clearly advisable to stayon course when working to inspire cus-tomers to be delighted, the most success-ful companies engage customers at allsatisfaction levels with equal dedicationacross multiple channels to enhance thecustomer experience on every front.

BEST PRACTICES TO CONNECT WITHCUSTOMERSAvoiding the three most common mythsabout customer satisfaction is the first stepin achieving better results. The followingbest practices include some examples ofhow the highest performers in customersatisfaction achieve excellence. These arebest practices that any company can followto chart their own path to excellence.

Focus first on customersCommunicate effectively and pro-activelywith customersWhether it is a price increase, loanoptions, product features, changes toprocesses or coverage choices, a companymust communicate the right details effec-tively so customers know what to expect.This focus will help in taking the neces-sary steps to increase the number of posi-tive customer interactions.

Customers increasingly communicatevia the internet or their mobile device ona wide range of subjects and issues —which could include their opinions abouttheir experiences with a company. Theyare also not shy when it comes to postingonline comments about their serviceexperiences, good or bad. In fact, one badexperience can be broadcast on a blog orspread across Twitter, Facebook,YouTubeand beyond. Some may recall theDomino’s Pizza YouTube video, taken viamobile device a few years ago, whichrevealed unpleasant incidents in aDomino’s kitchen. However, the video,which went viral online, offeredDomino’s an opportunity to target subse-quent advertising on their quality, provid-ing a further lesson in how to turn thesocial media tide in the company’s favour.

Because social media remain new tomany business executives, and because


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there are many ways to measure theirimpact, there is still a lot of confusionabout them. One thing remains certain —a company should be listening. However,too many companies rush to respondwithout understanding the potential con-sequences of responding. A companyshould be sure to understand the ramifica-tions of social media and make aninformed commitment before engagingwith them.

Personal service throughout the lifecycle of the customer relationshipincludes customer outreach, such as thetype offered prior to a substantial change,or a follow-up thank you call after aservice experience — demonstrating thatclear, appropriate and timely communica-tions are key. Even in low-involvementrelationships, the moments of involve-ment are arguably more critical becausethere are fewer of them; successful com-panies make them count.

Provide multiple platforms for positive interactions with customersBe there for customers, no matter where‘there’ is.Whether it is at a retail or serv-ice location, or via phone or online, acompany’s presence should be where itscustomers need it to be. If the company isnot there, another company will be, andno company can afford to lose opportuni-ties. One caution — do not go whereyour company is not prepared to be.Develop a strategy, support the rightresources and think before you leap.Whenin doubt, ask the customers.

Vernon Hill, founder and former pres-ident of Commerce Bank — one of thefastest-growing and most profitable banksin the USA — and now the founder ofMetro Bank, the first new British-basedbank in 138 years, knows the value offocusing on customers. Hill strongly

believes that in banking it is critical tohave a brick-and-mortar branch in acommunity rather than simply offeringbanking online or via ATMs.This belief isbased on customer research, which showsthat customers seek to do business with abank nearby. This strategy does not endwith the building of a branch, however.Both Commerce and now Metro haveworked to build strong, lasting customerrelationships through human interactions,and have implemented a culture-basedhiring and training programme to ensurethat their representatives who providecustomer service have the right attitudeand service orientation, and that they areempowered to deliver what customerswant. In a considerable paradigm shiftdesigned to build a culture of service, Hillurges Metro Bank managers to reply tocustomer requests with a yes, but requirestwo managers to respond when theanswer is no. He further supports this phi-losophy with a simple mantra: ‘no stupidrules’ — thus seeking to build bankingservices around customer needs anddesires rather than around the rules of thebank.

According to Hill, Metro Bank seeks tomake customers into ‘fans’, aligning withthe thinking that it is delight, not satisfac-tion, that will yield loyalty and lastingbusiness results.

Empower from withinKnow your employeesRegardless of the industry a company isin, one tenet applies: employees matter inthe delivery of products or services.Thereare some questions that should be asked,however. Who are the company’s cus-tomer-facing personnel? Are they engagedin the communication of price changeswhen they occur? Are they prepared andempowered to provide advance notice of a


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price increase and to discuss options?Customers expect employees to be pre-pared to answer their questions and willreward a company with their loyalty whenthis expectation has been fulfilled.

To develop a strategy that ensures theright employees are hired to engage thecustomers, it must first be understoodwhat customers want and need. To dothis, a company should position itself tolisten actively, not just to annual trends,but to evolving customer opinions on adaily basis.

Companies such as The Savoy Hotellisten to their customers and include cus-tomer needs in their employee training.Empowering employees is such a strongpart of The Savoy Hotel’s long-standingbusiness strategy that they have createdthe Savoy Academy to help build exem-plary leaders in customer service for theirLondon-based hotel.The Savoy Academyprovides individualised professional train-ing, both in the hotel environment andoffsite, to help customer service personnelmaster the key traits the hotel has identi-fied as being most important to theirguests. The curriculum is hand-tailoredfor each colleague in order to focus oncreating a service culture, empoweringleadership and enhancing service skills.What makes the Savoy training pro-gramme so effective is that the hotel’s cul-ture permeates their training and serviceexperience. According to GeneralManager Kiaran MacDonald, the hotelhas crafted ‘Savoy Service Signatures’ —key attributes of the brand that every col-league of the hotel seeks to support inevery guest interaction. These signaturesare evident in The Savoy’s Art Deco andEdwardian décor influences, which linkcharm and spontaneity, as well as blendingwhat MacDonald calls ‘Savoy Etiquette’to create memorable moments for everyguest.

Empower employees to solve problemsGood employees are more than knowl-edgeable and pleasant. Customers expectemployees also to be their partners insolving problems, so an environmentshould be created that turns employeesinto pro-active problem-solvers. Hire theright people, provide them the necessarytraining and tools, give them the rightopportunities to succeed with customers,and then measure and reward the highperformers. Performance is a process thatshould be constantly revisited to ensurethat employees remain top performers.

Get employees involved and listen to themSome of the best ideas for improving theservice a company provides to customersare locked away in the heads of employees.The highest-performing companies recog-nise this fact and involve their employeesaccordingly — other than customers, whohas a better perspective on the interfacebetween a company and its customers?Customer-facing employees should not beignored.Companies whose employees havea voice have higher employee satisfaction.As with customer satisfaction, employeesatisfaction provides positive results.

Train and enable employees to talk to customersCommunicating with customers aboutoptions strengthens their relationship witha brand. For example, discussing alterna-tives in advance of a price increase signalsto customers that they have an advocate,someone who understands the impactthat a price increase may have on themand respects them enough to advise themin advance and wants to discuss options.In the insurance industry, options such as bundling an auto policy with a homeor life insurance policy is one way for


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customers to earn discounts, and raisingdeductibles or exploring alternate cover-age are other options for lowering costs.Whatever the options offered, these per-sonalised interactions in advance of aprice increase strengthen customer trustand often increase satisfaction.

Be well-informed and share what hasbeen learnedMeasure and understand customer expectationsIn today’s world, it is easy to get data.Makesure you measure what has a demonstrableimpact on your business. Customer opin-ion changes quickly in a world dominatedby Twitter, Facebook and YouTube.Research is no longer an annual process —it is now a daily requirement. Customersshould be listened to wherever they sharetheir opinion, whether it is on the phone,on their blog, in stores or service locationsor on their favourite social media site. If acompany is not listening, it should under-stand that another company is.

Companies now have more access tothe tacit or unspoken nature of customerand consumer behaviour than at anyother time in history. They should listencarefully to what is being said and gain adeeper understanding of their customers,then use that knowledge to improve theservice experience and brand messaging,and to inform new product development.

An example of a company that failed tolisten to their customers in advance of abranding action is the clothing retailer,The Gap. In 2010, The Gap decided tolaunch a new marketing campaign onlineto introduce their new logo.The originallogo featured a solid blue box surround-ing ‘GAP’ in white type. The new logo,released on their website, showed ‘Gap’ inblack over a light background with a smallblue box partially showing behind the

letter ‘P.’ Consumers responded almostimmediately — they hated it. More than2,000 comments on Facebook criticisedthe decision to abandon the well-knownlogo. A Twitter account set up to protestagainst the new logo yielded nearly 5,000followers and a ‘Make your own Gaplogo’ site went viral on the internet,prompting visitors to create more than13,000 mock versions of the new design.Mark Hansen, president of The Gapbrand in North America, responded witha statement:

‘We’ve been listening to and watching allof the comments this past week.We heard[consumers] say over and over again theyare passionate about our blue box logo, andthey want it back. So we’ve made the deci-sion to do just that – we will bring it backacross all channels.’

This was no doubt an expensive and dam-aging lesson on what happens when thevoice of the customer is not the prevailingvoice in a company’s strategy. What TheGap failed to do was start first with thecustomer and build their brand and mar-keting strategy from the customer’s van-tage point.‘There may be a time to evolveour logo’, Hansen also stated, ‘But if andwhen that time comes, we’ll handle it in adifferent way’.

Be transparent with information and resultsMeasurement of the right things worksonly if the appropriate employees see theresults. From product development andsales, to contact centre and web design,the only way to incorporate the voice ofthe customer fully into a business is to betransparent with what they say — share itbroadly and openly with employees, notonly when the news is good, but alsowhen there is something to learn.


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Make it fast and keep it easySpeed and convenience are most importantto customersSpeed and convenience remain constantdesires of customers, regardless of whethera company provides a product, a service,or both.With increasingly better technol-ogy, immediacy and simplicity havebecome basic expectations.This is true inall industries, not just in the technology-related industries. This means that every-one’s job just got harder — the bar is sethigher, the expectations are greater andthe need is clear: eliminate the nice-to-haves of internal processes and focus onthe have-to-haves.

Customers expect fast, but also easy. Ifthey are required to do more work thanthey expect just to reach a company orengage a product and service, a key dissat-isfier has been provided — and very pos-sibly an invitation to seek competition,which may prove easier to deal with thanyour company.

Tony Hsieh, president of Zappos, theonline shoe and clothing retailer, has builtthe company’s brand on a platform of corevalues and culture, including delightingcustomers through fast, easy and pleasantservice. Employees are hired and firedbased on their cultural fit within theZappos organisation, and the workingpremise is that if they get the culture right,then everything else will fall into place.

According to Hsieh, the companychose its fulfilment centre location, whichis directly next to a central UPS shippingcentre, so they could take advantage oflast-minute timing on shipping. Thisenables Zappos to promise same-day ship-ping on nearly every order receivedbefore 5pm, which is part of the brand’sinherent desire to surprise and delight itscustomers. Similarly, Zappos takes exten-sive steps to remove the risk and fear that

often characterise online clothing pur-chases among customers who worryabout ordering a garment that may not fitright. Zappos provides 360-degree, high-resolution views of their products onlineso consumers can have the most visualinformation about the products they pur-chase. Zappos also employs a no-ques-tions-asked return policy, eliminatingcustomers’ concerns about being stuckwith a product they ultimately do notwant — and the company will even payfor the return shipping.These touches —same-day shipping, risk-free shopping andno-question returns — support Zappos’self-stated strategy to ‘deliver happiness’and give the brand a competitive advan-tage that makes it among the most suc-cessful brands in customer satisfaction.

THE PAYOFFAs noted earlier, high levels of satisfactiongarner higher levels of customer advocacy,and customer-focused companies achieveother payoffs even in today’s business cli-mate in which many companies experiencelittle or no growth. These other payoffsinclude greater share of wallet, longer cus-tomer tenure, increased customer advocacyand the ability to charge higher prices orpremiums when customers perceive theyare receiving more value.

The hotel industry provides an exam-ple of greater share of wallet: moving thelevel of guest satisfaction from dissatisfiedor satisfied to delighted increases ancillaryspending per room by 17 per cent in theluxury hotel segment, which equates toan increase from US$47 to US$55 (seeFigure 3).10

In another example, this one from theinsurance industry, achieving average sat-isfaction increases retention by 5 per centand recommendations by 11 per cent,compared with satisfaction levels below


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industry average (referred to in Figure 4 as‘Among the Rest’). Achieving high satis-faction results in an additional 7 per centretention and 18 per cent higher likeli-hood to recommend, compared withindustry average.

In the current economy, the impor-tance of price of products and services has increased. For many companies, it iscommon to reconsider pricing strategy asa way of addressing declines in marketshare. Some companies may choose tolower their prices to recharge customerinterest in their products or services.Lowering prices, of course, brings risk oflost revenue and is often paired with costreductions, staff reductions and otherundesirable actions necessary to offset thepricing action.

Likewise, companies seeking to regainprofits in lieu of market share decreasesmay elect to increase their prices, riskinglong-term market share in trade for short-term profits. Increasing prices brings itsown risk of further market share losses ascustomers avoid or leave the brand forlower-priced competitors. Even loyal cus-tomers have their limits, particularly inbad economic times.

It is clear that, for many companies,price becomes the proverbial fork in theroad, both for them and their customers,but how have companies implemented aprice increase successfully without affect-ing satisfaction? Practices used in theinsurance industry provide some insight,as this industry arguably offers greater dif-ferentiation in the service it provides than


Figure 3 Average amount spent on ancillary services per roomSource: Pingitore, Seldin and Walker10

Figure 4 Financial value of customer satisfaction in the motor insurance industrySource: J.D. Power and Associates 2011 National Auto Insurance Study

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in the products it offers. In the J.D. Powerand Associates 2011 National Auto InsuranceStudy, motor insurance customers whohad more than one year of tenure withtheir current carrier were asked whetherthey had experienced a premium hikefrom the prior year. More than one-fifthindicated that they had — an increase of5 percentage points from 2009.

How did this increase affect satisfac-tion? The answer lies in how carriers han-dled discussing the increase in premiumwith their customers. Results from the2011 National Auto Insurance Study showthat overall satisfaction was notably lower(83 points on a 1,000-point scale) amongcustomers whose premium increased withno advance notification of the increasethan among those who were notified ofan increase in advance and received a dis-cussion of alternative policy options (807 points). Of those customers who didexperience an increase, one in tenreceived prior notification with optionsdiscussed.

Whatever the options offered, thesepersonalised interactions in advance of aprice increase strengthen customer trustand often increase satisfaction.The pricingpower of high satisfaction has also beenreported in research conducted byHomburg, Koschate, and Hoyer,11 whichfound that customers who are highly sat-isfied are, in fact, willing to pay more forproducts.

SUMMARYFor companies that score in the lowerquartile of customer satisfaction, raisingsatisfaction levels typically takes organisa-tional realignment, sponsorship at all levelsof leadership and coordination across allcustomer-facing channels. This coordina-tion, or multi-channel integration of cus-tomer focus, is very likely to need varying

degrees of improvement in each of the five critical-to-customer components:product, people, process, presentation andprice. Therefore, senior leadership mustcommit to making changes across thespectrum of the organisation, and possiblyto addressing some underlying culturalissues within the company. Realigning anorganisation to be more customer-focusedis no easy task, and many companies haveexperienced difficulty in implementingand sustaining change.

What remains clear is that delightingcustomers requires that multi-channelintegration becomes multi-channel man-agement. Interdepartmental coordinationand planning are core to overall improve-ment and form the point where real cul-ture change becomes solidified. Customersatisfaction is not an initiative or a pro-gramme. It is also not a departmentalresponsibility, or something that just hap-pens independent of product develop-ment or sales. Delighting customersmeans that a customer focus is part of thecompany’s mission and plays a key role inevery decision and action taken.

A company that delights customers isone where the customers’ perspective —their voice — is represented in everymeeting and in every decision, andremains the company’s central focus.Delighting customers must become partof the company’s DNA and be a commonpart of daily language and discussions.Sales and product development decisionsand processes do not just consider thecustomer experience — they are theresult of the customer experience.

Whether a company operates in a low-involvement industry or a high-involve-ment industry, customer interactionsshould be intentional, positive andfocused on their needs and expectations,with a goal of exceeding those expecta-tions in a memorable way.


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Good enough is no longer goodenough. Improvements and advancementsin manufacturing and service deliveryprocesses foster a customer expectation ofzero defects.Expectations of speed,accuracyand quality extend to the customer serviceexperience as well. In the end, it is the voiceof the customer that is the loudest.

References and Notes(1) Anderson, E., Fornell, C. and Lehmann, D.

(1994) ‘Customer satisfaction, market share andprofitability: Findings from Sweden’, Journal ofMarketing,Vol. 58, No. 3, pp. 53–66, July.

(2) Bernhardt, K. L., Naveen, D. and Kennett, P.(2000) ‘A longitudinal analysis of satisfactionand profitability’, Journal of Business Research,Vol.47, No. 2, pp. 161–171.

(3) Edvardsson, B., Johnson, M., Grundson,A. andStrandvik,T. (2000) ‘The effects of satisfactionand loyalty on profits and growth: productsversus services’, Total Quality Management,Vol. 11, No. 7, pp. S917-S927.

(4) Customer satisfaction was measured using amulti-item index that asked respondents to ratevarious facets of their product/serviceexperience.The index was then grouped into‘zones of satisfaction’ based on the overalldistribution of scores, with dissatisfied customersdefined as scores at about the lower 15 percent, and delighted at the upper 15 per cent.

(5) J.D. Power and Associates National AutoInsurance Study (2011) ‘Satisfaction with Priceis Lower among Auto Insurance CustomersWho Bundle Policies’, press release for thisstudy provides topline information only forother than study subscribers, available at:http://businesscenter.jdpower.com/news/pressrelease.aspx?ID � 2011087 (accessed 16thMarch, 2011).

(6) Mayo, E. (1949) ‘Hawthorne and the WesternElectric Company.The Social Problems of anIndustrial Civilisation’, Routledge, London.

(7) Gupta, S. and Zeithmal,V.A. (2006) ‘Customermetrics and their impact on financialperformance’, Marketing Science,Vol. 25, No. 6,pp. 718–739.

(8) Pingitore, G., Morgan, N., Rego, L., Gigliotti,A.and Meyers, J. (2007). ‘The Single QuestionTrap’, Marketing Research (Summer Issue) pp. 9–13.

(9) Morgan, N.A. and Rego, L. L. (2006). ‘Thevalue of different customer satisfaction andloyalty metrics in predicting businessperformance’, Marketing Science,Vol. 25, No. 5,pp. 426–439.

(10) Pingitore, G., Seldin, D. and Walker, A. (2010)‘Making customer satisfaction pay: Connectingsurvey data to financial outcomes in the hotelindustry’, Cornell Quarterly Review, 5th November.

(11) Homburg, C., Koschate, N. and Hoyer,W. D.(2005) ‘Do satisfied customers really pay more?A study of the relationship between customersatisfaction and willingness to pay’, Journal ofMarketing,Vol. 69, pp. 84–96.


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Beyond satisfaction: Connecting with customers to maximise … · 2019-10-03 · CONNECTING WITH CUSTOMERS TO MAXIMISE BUSINESS PERFORMANCE measure a company needs to monitor (the