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Summary of Key Points and Terminology - Chapter 5

Summary of Key Points and Terminology - Chapter 5 - Summary...

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Summary of Key Points and Terminology Chapter 5 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. Customer engagement 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. The 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. The 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.
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