For earning profits in an organization and making your business successful, the most important factor is customer satisfaction. When the companies make their customers delighted by giving them more than their expectations then they become loyal and loyalty leads towards customer retention. The term Customer Satisfaction is widely used to measure how far the customers have been able to satisfy from company’s product and services. This action is very useful for organizations to supervise, monitor, manage and control their business activities. It is a key indicator and it helps to formulate business strategies. For customer satisfaction the main focus of employees is to fulfill customer’s expectations.
By conducting surveys or by getting feedback from the customers companies can understand whether their product or services have met the expectations or exceeds the expectations. Here expectations are the key factors behind this. When customers have high expectations and the result falls short, then the customers will definitely be disappointed and the result will be rated as less than expectations. So customer satisfaction is the leading indicator and it shows the intention of the customers towards purchase of a particular product or service. Customer satisfaction can be gathered at individual level but it can be reported at mass level. There are several other aspects to measure this attitude. Customer satisfaction is a very different concept and it varies from person to person, product to product and service to service.Although there are various scales to measures Customer Satisfaction but the most commonly used scale is five point scale.
So we can say that Loyalty and Satisfaction goes hand in hand and they are the vital tools of Customer Relationship Management. Customer Loyalty is to attract the right customers, making them to buy more and more and also bring you even more customers. Companies should keep in touch with their customers by sending them e-mails, cards and by conducting personal visits. Organizations must also train their teams so that they treat customers well. Customers have the mind setting that they are buying from people so provide them friendly environment and care for them. So you can build customer loyalty by treating people how they want to be treated.