Why Satisfied Customers Defect
Case study: Why Satisfied Customers Defect
Situation Analysis
In terms of customer satisfaction and loyalty, there are many opportunities in which a organisation or manager can implement in order strengthen themselves in a competitive marketplace and allow for many of their customer to transition from unsatisfied to satisfied to completely satisfied. For a organisation, the loyalty of a customer is key to success and the key to loyalty is satisfaction. When dealing with customers, a organisation’s primary strength is to implement different techniques in order to increase the loyalty of a customer. As explained in the case, this can depend on the products and/or services which the organisation offers. For example, through the research undergone from five different markets, it was discovered that for airlines customer loyalty increases with promotional programs such as frequent flyer points and for automobile repair organisations things like loaner vehicles or a free washing and waxing can heavily increase satisfaction and loyalty.
Weaknesses which can arise when dealing with customers, in particular un-loyal or wrong, can include a lack of effort by the organisation in order to meet the wants of such customers, whether this being price sensitivity, poor service or a lack of promotional benefits. Furthermore the requirement of developing new and innovative marketing plans can also prove to be a weakness, as it is difficult to launch a unique marketing plan to a heavily competitive marketplace.
Whether it be aiming to make customers completely satisfied or simply satisfied, there are many opportunities which a organisation can undertake in order to increase satisfaction. Whether it be promotional programs or offering high end sales or simply just presenting a more friendly/caring attitude towards the customers.
When a company is looking to completely satisfy its customers it need to go 1 step above its competition and it is the competition that is a
Situation Analysis
In terms of customer satisfaction and loyalty, there are many opportunities in which a organisation or manager can implement in order strengthen themselves in a competitive marketplace and allow for many of their customer to transition from unsatisfied to satisfied to completely satisfied. For a organisation, the loyalty of a customer is key to success and the key to loyalty is satisfaction. When dealing with customers, a organisation’s primary strength is to implement different techniques in order to increase the loyalty of a customer. As explained in the case, this can depend on the products and/or services which the organisation offers. For example, through the research undergone from five different markets, it was discovered that for airlines customer loyalty increases with promotional programs such as frequent flyer points and for automobile repair organisations things like loaner vehicles or a free washing and waxing can heavily increase satisfaction and loyalty.
Weaknesses which can arise when dealing with customers, in particular un-loyal or wrong, can include a lack of effort by the organisation in order to meet the wants of such customers, whether this being price sensitivity, poor service or a lack of promotional benefits. Furthermore the requirement of developing new and innovative marketing plans can also prove to be a weakness, as it is difficult to launch a unique marketing plan to a heavily competitive marketplace.
Whether it be aiming to make customers completely satisfied or simply satisfied, there are many opportunities which a organisation can undertake in order to increase satisfaction. Whether it be promotional programs or offering high end sales or simply just presenting a more friendly/caring attitude towards the customers.
When a company is looking to completely satisfy its customers it need to go 1 step above its competition and it is the competition that is a