Linking Customer Satisfaction Measurement to Financial Performance

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

One of the main benefits of Customer Satisfaction research is provided through the capability to observe trends on indicators that are directly tied to financial performance.  Companies can use ongoing measurement as an early warning system to monitor and detect drops in performance and to determine how to take corrective action.  When performance is stable or trending upward, market position may be considered and calculated risks may be contemplated with respect to the competitive environment.

Under the best circumstances, increased performance in service delivery should be celebrated.

As there are many external factors affecting a company’s financial performance, the capability to observe ongoing performance allows a perspective into the customer viewpoint that can be used to increase awareness regarding overall financial performance.  A key benefit is reduced risk.  While planning matters require a stable environment, the measurement can provides an additional perspective and increased confidence to determine if the time for change is right or wrong.  Customer satisfaction is sensitive to changes in the market place and can warn of a competitive threats and pressures.

In addition to a perspective into key service indicators, a view into the basic health of customer relationships is provided through customer retention and loyalty measures.  These are the early warning measures that are important to track.  Valuable insights pointing to the cause and effect of altering these measures often indicate market shifts or other economic impacts which can be anticipated.

The key is to know when and how to react.  Of course, the business climate is also important.

Science – First, there needs to be recognition of the fact that Customer Satisfaction research relies on scientific methodology.  The research methodology requires reliability to predict the degree of sample representation compared to the total population measured.  Statistical reliability and confidence levels are the key components of research findings when significant differences are reported between distinct populations.  From a practical standpoint, the overall reliability of the data collected is fully dependent upon specific procedures to ensure validity.

 

Benefits – Remember that the outcome of a successful program is more than just a measure of Customer satisfaction.  The results can also be tied to Brand Equity and an assessment of standing within the competitive environment.  It is also recommended to be sure to evaluate findings against competitive benchmark data for a comparative viewpoint.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Get the latest straight to your email.

Google My Business: You Need It for Local SEO

The current state of the world brought home the importance of e-commerce for local economies. With people spending more time at home and relying on web-based services wherever available, it follows that businesses should also be online. With local businesses doing what they can to be seen first and get noticed online, you need to

Read More »
digital marketing

Benefits Of Outsourcing Your Digital Marketing

Many businesses nowadays are curious about whether they can run their own digital marketing campaign. Yes, it may be possible. But only if you internally have the right people and tools to do so. Such a step may turn out to be a bigger challenge than you expected. Truth is, managing digital marketing in-house can

Read More »

Signs You Should Invest More In Digital Marketing

Today, tons of businesses are focused on establishing good digital marketing. However, do know that investing in such work can be expensive, time-consuming, and challenging. Digital marketing isn’t something you execute once then proceed to work on your usual operations. If you want to get desirable results, you need to continuously work on it and

Read More »

5 Best Practices For Lead Generation During This Pandemic

As of now, there’s still no definite prediction as to when this COVID-19 outbreak will end. And as days go by, more and more businesses are struggling to reach their lead generation targets as in-person activities have been totally suspended. On a positive note though, this means that prospects and customers are spending more time

Read More »

The Increasing Importance of SEO During and After the Pandemic

Since the very first banner ad was posted on the internet in 1994, digital marketing has been growing quickly and steadily. Over time, more effective advertising strategies have been developed to make the most of the internet’s growing reach and the mountains of data continuously being gathered. Because of the pandemic, the need to stand

Read More »
The Importance Of Web Design To Your Marketing Strategy

The Importance of Web Design to Your Marketing Strategy

How important is your web design to your digital marketing strategy? The answer is: very. Your website is the place where most people will interact with your business. Both your online and offline marketing activities will most likely send users to your website. Whether it’s to get information about your services and products, to make

Read More »

Get the latest straight to your email.

Stay in the loop