Customer Satifaction and Customer Loyalty

A detailed Summary of Customer Satifaction and Customer Loyalty

As the world economy expands, customers have more choices for where they get

their products and services. Satisfying customers is no longer enough. Even satisfies

customers have many options that can easily attract them away from their current

supplier. Retaining customers requires building loyalty, which not only includes

customer satisfaction, but also and emotional response that keeps customers coming back

for more, which is customer loyalty. This paper will discuss what customer satisfaction

and loyalty is, their differences, and how to create customer loyalty.

The first thing to look at is the distinction between satisfied customers and loyal

customers. "When customers were asked in a survey about their previous supplier, 60 to

70 percent of them responded that they were "satisfied" or "very satisfied," yet they still

switched suppliers"(Lenz, 2000, p.1). Most businesses think their customers are satisfied,

and they very well maybe. Unfortunately, customer satisfaction does not lead to customer

loyalty. These days, even if customers are completely satisfied with the product or

service, 40 percent of them will leave and start doing business with a competitor

(Michaud, 2000). On the surface, 40 percent may not

they tend to choose a certain brand of soap more often than others" (Novo, 2000, p.1).

choosing to do business with a company" (Novo, 2000, p.2).

There are several reason why companies wanting loyal customer with cost be the

So ultimately business want loyal customer, but the question of what are loyal

existing customer base (Michaud, 2000).

products and services, but they also need to know how customers want their products and

services and what competitor and competitors are doing or talking about" (Griffin, 2000,

interjecting with "come-on" statement, such as "I see," "I understand," "Oh really," and

to establish a common ground with each customer quickly.

Approximate Word count = 1470
Approximate Pages = 6 (250 words per page double spaced)

Category: Miscellaneous

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