What is Customer Satisfaction

Customer satisfaction is the key indicator of how the goods and services offered by a firm meet customer’s expectations. It also measures the performance of a business. In the recent past most firms or businesses used the concept of bargaining power to attract and retain their customers. This rule no longer exists because it has been replaced by the concept of customer satisfaction.

As noted before, customer satisfaction can only be achieved if a deep market research is done to find out what the customers really want. This in other words is called as customer survey.

The level of customer satisfaction varies from person to person, from product to product or from product to service. Therefore, the level of satisfaction depends on a number of factors, both psychological and physical variables. Another factor which can affect the level of satisfaction is comparability with the competitor’s products or services.

Indicators that the firms focus is customer satisfaction

There are several indicators that show a business is really focusing on customer satisfaction. To begin with, the firm has a human resource department (HRM). The HRM department basically focuses on the staff. This department helps in the administrative roles as it determines the kind of staff the business is going to have. The reason being that the kind of staff a firm has determines the quality of goods and services offered in order to achieve the desired customer satisfaction.

The HRM department has several functions. One, there selection and recruitment function whose function is to determine how employees are to be selected and the methods that are to be used to recruit quality staff, the goal of the staff is to ensure maximum customer satisfaction.

There is the employee motivation function which aims at creating an environment that is motivating to the employees, an important factor in driving customer satisfaction. A motivating environment induces the workers to work harder and produce great results. Another HRM function is employee evaluation which is aimed at measuring the performance of workers. 

Here, the employer wants to find out if the performance is good or poor and whether there is need to retain those workers who do not give positive results. In most cases, firms adopt the balance scorecards to measure and evaluate employee’s performance.

Training of staff is a very important function in any successful organization that has customer satisfaction at heart. Training goes hand in hand with education and development. Therefore, the employees are educated and trained to induce knowledge, skills and expertise in a certain actual area of work.  

 We also have provision of staff services as a function of HRM which include safety, good pay packages and good terms of employment. Finally, there is the function of manpower planning which regulates the number of employees so as to avoid elements of understaffing and overstaffing.

All these functions aim at achieving the organizational goals, which are quality products for customer satisfaction.

Previously, we noted that the firm has a marketing department. This is another indicator that it’s focusing all its energies and resources on customer satisfaction.

Another indicator is that the firm has well defined organizational objectives. That is to produce quality products, aim at customer satisfaction and increase profits.

The firm also has a customer care or service department which carries out a series of activities to ensure customer satisfaction by meeting customer’s expectations. Scholars argue that the customer is king should be the main theme of every business. Therefore to enhance customer loyalty, a lot of attention must be given to customers. 

The customer service department is also in charge of getting feedback from customers. The information is very vital for decision making by the management as they will do more research on what the customers really require. Customer service can be done by a person or it may be automated. The automation involves self-service for example it may be done through the internet or e-mails. The firm should however train its staff on how to deal with customers for success.

Finally, we the have has a set of strategies to fight its competitors which is a good indicator that it’s focusing on its customer’s satisfaction. Competitive advantage drives firms to produce quality goods or services as a firm aims at being the best in the market. The strategy is called as the market leadership strategy.

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