Summary of Key Points and Terminology
Creating satisfied and loyal customers is perhaps the most important aspect for
long-term competitive success. Customer wants and needs drive competitive
advantage, and statistics show that growth in market share is strongly correlated
with customer satisfaction.
Key customer-focused practices for performance excellence include identifying
the most important customer groups and market segments; understanding the
voice of the customer through effective listening and learning strategies;
understanding the linkages between customer needs and
design/production/delivery processes; creating a customer-focused culture that
contributes to customer engagement; managing and resolving complaints
effectively, and measuring customer satisfaction, engagement, and dissatisfaction,
and acting on the results to improve organizational processes.
refers to customers’ investment in or commitment to a
brand and product offerings.
Characteristics of customer engagement include
customer retention and loyalty, customers’ willingness
to make an effort to do
business with the organization,
and customers’ willingness to actively advocate
for and recommend the brand and product offerings.
customer benefit package
the total package of products and services that a
business offers, and includes the physical product and its quality dimensions; pre-
sale support, such as ease of ordering; rapid, on-time, and accurate delivery; and
post-sale support, such as field service, warranties, and technical support.
customer benefit package influences perceptions of quality.
The American Customer Satisfaction Index is a national measure of customer
satisfaction, linking expectations, perceived quality, and perceived value to
customer satisfaction, which in turn is linked to customer loyalty and profitability.
The econometric model used to produce ACSI links customer satisfaction to its
determinants: customer expectations, perceived quality, and perceived value.
Customer satisfaction, in turn, is linked to customer loyalty, which has an impact