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The Power of
Customer Satisfaction in
Making or Breaking a Business
By Linda Canada,
For The Paper Store, Inc.
The young lady
eyed the office chairs doubtfully. Crossing the office furniture show
space, she spotted a comfortable looking, burgundy colored secretarial
chair sandwiched between a massive desk and a row of metal filing
cabinets. After a little tug-of-war with the object of her attention,
the lady finally freed the chair from its tight confinement and
tentatively sat. Much too hard. The next one she tried was comfortable
enough, but the attached price tag was not. Looking around for
assistance and finding none, she wondered where they kept the ones on
sale, the ones she had seen in this morning's newspaper insert. She
had even double checked the name of the store to be sure she had the
right one - Office This, Office That, the two were so similar that she
had trouble distinguishing between them.
After what seemed like a two-mile hike through
isles and isles of office supplies, the young lady finally found a
store employee busy at stocking reams of paper. Her polite inquiry as
to the whereabouts of the sale merchandise garnered first a deep sigh,
then a curt "by the front door". The young lady did not even
glance at the merchandise displayed by the front door as she used it
to exit. She did, however, glance up at the huge red and white sign
that dominated the parking lot.
She remembered the name.
An article
which appeared in the Journal of Managerial Issues in 1995 described
an encounter such as the one above as a "service encounter",
defining this as "the direct or indirect interaction between a
service provider, or firm, and its customer" (D'Souza & Menon
1995; p. 481). The article stated findings that focused on the
customer being an active, not passive, participant in these encounters
and emphasized the fact that the customer should be considered as
having as much an active role in the company as an employee (D'Souza
& Menon 1995).
A 1995
Marketing News survey revealed that the manner in which a company
treated complaints was second only to product quality when it came to
the purchase decisions of the consumer (Conlon & Murray, 1996).
In other
words, the old adage "the customer is always right" is one
that businesses might do well to remember as they enter the
twenty-first century. Confronted with steep competition and a flood of
new competitors, modern businesses have found it a major struggle to
obtain new customers while keeping the loyalty of those already
obtained. This has forced them to seek new avenues in the areas of
customer satisfaction and retention.
In today's
fast paced, competitive marketplace, new tools to help companies gauge
the strength of their competitors and the loyalty and satisfaction
have been developed. One such tool available to modern businesses is
the services of a specialized market research firm such as
Benchmarking Associates in Texas. This research firm uses its patented
"Competitive Strength Inventory" method to help companies to
become better acquainted with their target markets in order to know
the best strategy to take in the area of customer retention(competitiveanalysis.com/components.html).
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