Customer Satisfaction & Loyalty

Why Is Customer Satisfaction And Customer Loyalty Research Important?

Satisfying customers is the only way to stay competitive in today's marketplace. Customers have
an expectation of service and product performance that must be met. The balancing act between
what customers want and what your company can provide must be optimized in order to
maximize your firm's long-term profits. This occurs in two ways:

 With precise information, companies can focus on issues that truly drive customer
satisfaction. A directed focus often leads to cost reductions because companies can
emphasize improvement in areas of customer concern and de-emphasize focus in other
areas.
 
 Focusing on motivators of customer satisfaction leads to more loyal customers, who tend
to be the most profitable customers (i.e., repeat business is usually the most profitable).
An inclusive customer satisfaction and loyalty program can, therefore, be considered a
source of future profits.

The goal of Decision Analyst's Customer Satisfaction & Loyalty research is to help companies
maximize long-term profitability through reaping the "lifetime value" of its customers.

Types Of Customer Satisfaction Research

Motivation Research. Helpful in determining strengths and weaknesses of corporate satisfaction

and loyalty programs, motivation research is usually an introductory step in developing an
integrated customer satisfaction and loyalty system. Our experts conduct in-depth motivational
research interviews with both employees and customers to develop insight into the performance
of your current satisfaction program. Recommendations to improve customer satisfaction and
loyalty are made based on this motivational research.

Tracking Studies. Studies repeated at specified intervals give organizations a history of

information about customer or employee satisfaction, revealing trends in both satisfaction and
loyalty. Tracking studies are especially useful in determining and monitoring key variables that
influence satisfaction and loyalty—which in turn, influence company profitability. Tracking
studies may be conducted using any of the following methods:

 Telephone
 Mail
 Internet
 Interactive Voice Response Systems
Transaction Monitoring. These studies provide insight into customer satisfaction at different
points of customer contact. For example, customers who call a customer care center would
complete a satisfaction survey soon after their call-center experience. Other customers who
purchase a product in a retail operation would receive a questionnaire requesting information on
that experience. Transaction monitoring focuses on increasing customer satisfaction at particular
stages or in specific places. Such a microexamination of customer behavior allows companies to
improve profitability through streamlining processes that improve customer loyalty. Transaction
monitoring may be conducted using any of the following methods:

 Telephone
 Mail
 Internet
 Interactive Voice Response Systems

Exception Systems. The exception-system approach allows for the identification of problems
that may occur in an organization by encouraging customers to give input when they feel
dissatisfied. The goal, therefore, is to identify areas of weakness that should be addressed to
improve customer satisfaction. Exception systems may use any of the following methods:

 Internet
 Interactive Voice Response Systems
 Comment Cards

Customer Value Analysis. This analysis gives customer satisfaction and loyalty programs an
added level of information about customers. A typical customer value analysis classifies
customers based on how much they spend and how much value they add to your company.
Specifically, the analysis allows a directed set of actions to be developed to increase satisfaction
and loyalty of the most profitable and valuable customers.

Marketing Consulting. Decision Analyst consultants provide insight into all variables that
influence customer satisfaction and loyalty, such as product design, strategic positioning, brand
strength and brand equity, product quality, competitive activity, customer service, and
advertising. Through a careful examination of these variables and the interactions among them,
our consultants develop a satisfaction strategy that will maximize long-term profitability.

Employee Satisfaction Research

Employee satisfaction measurement is a crucial first step in most corporate satisfaction and
loyalty programs. Employees are the contact points between the corporate brand and customers.
Dissatisfied employees often lead to dissatisfied customers. Employee satisfaction can help
maximize long-term profitability in four ways:

 Happy employees tend to do higher quality work.

 Happy employees tend to be more productive.
 Happy employees are more likely to stay with your company.
 Happy employees tend to create happy customers.
Employee Perception Research

Studying employees' perceptions offers insight into their knowledge of customer satisfaction. If
employees incorrectly believe customers are satisfied, it is unlikely that changes will be made in
product or service levels to attempt to satisfy customers.

Likewise, if employees incorrectly believe customers are dissatisfied, changes in products or

services that could adversely affect customer satisfaction could be implemented. Employee
perception studies are, therefore, a crucial component of satisfaction programs that are geared to
maximize long-term corporate profitability.

Dealer Satisfaction Research

Among automotive OEM’s, managing expectations of new vehicle dealers is a critical

component in optimizing business relationships and managing long-term profitability.
Satisfaction with financing, service promotion, parts delivery, and product issues are some of the
essential types of information required to effectively manage dealer relations. We use both
qualitative and quantitative techniques to help OEMs diagnose problems and track satisfaction
among their dealer body.

Customer Loyalty Simulator™

Decision Analyst’s Customer Loyalty Simulator™ predicts future market outcomes as a function
of rational and emotional perceptions of the brand, its products or services, and its customer
service.

Customer Satisfaction & Loyalty Services

If you would like more information on Customer Satisfaction & Loyalty Research, please contact
Jerry W. Thomas by emailing jthomas@decisionanalyst.com or calling 1-800-ANALYSIS
(262-5974) or 1-817-640-6166.