Customer satisfaction is based on the expectations and experiences which might be positive negative or even neutral. A negative feeling by the customer is considered to be dissatisfaction when the product does not meet the expectations. The level of satisfaction is determined by the purchase and consumption of the product. Creating satisfaction in the customers depends on various sources. Also, the higher levels of dissatisfaction are caused by the customers' failure to meet their expectations due to various factors.
The customer satisfaction sources include loyalty, product value, reduced costs and a larger share of wallet. The company's loyalty ensures the customers are satisfied hence ready to continue purchasing the brands of the company. Also, through quality products, the customers feel satisfied through their common experience of the products obtained. With reduced cost, the customers feel satisfied since the value of the product is seen to merge with the product purchased hence fulfilling the customers' desires. In addition, the customers are satisfied due to the wallet share.
From the company's survey to measure the satisfaction level of the customers on a scale of 1 to 10, customer loyalty is found to be the main source for the customer satisfaction. Since the customers hold on the loyalty of the brand purchased, the company has to strive and make decisions for the lower product that satisfy the customer. Although the loyal customers are seen to continue purchasing a brand, the quality of the product is profitable. With the additional company resources, there is an increase in marketing activities hence the company can determine the value and profitability generated by the company.
Also, the value of the customer is considered a vital source for the satisfaction of the customers. Pareto principle reveals that the company's profit is generated by almost 20% of the satisfied customers. On the other hand, the customers who are not satisfied with the product contribute to the 20% of the company's loss.
Additionally, the company's value of the customers' lifetime is a source that contributes to the customers' satisfaction. The company's determination of the customer's value generates about $1800 revenue according to the AT&T. As a result, the customer's value lifetime value should be taken into account by the company to take into account the revenue collected for the future upgrade of the company. The company requires the customer purchases, the profit margin as well as the customer retention to ensure its customers are satisfied by the products offered.
Since the customers represent the largest part that generates profit to the company, the company has to use the CLV metrics in determining the customers' focus on the highexpectations of the customers. As a result, the company has to opt for the fire to the unprofitable customers as well as identified contracts that need termination to resolve the customers' complaints.
The satisfaction of the customers depends on the time the product is purchased. Since the product value changes with time, the consumption of a new product creates more satisfaction to the customer. Therefore, the customers always make up their mind to purchase the new products and gain new experience of the product. The company has to, therefore, ensure the price of the product is lowered for the customers to meet their expectations of the high-quality product hence a high level of satisfaction.
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