When you provide the right service at the right price, at the right time, and to the agreed-upon specifications, the customer is satisfied. This is the mission of most organizations because they are of the belief that it is sufficient merely to satisfy customers. But studies conducted on the relationship between customer satisfaction and customer loyalty, show that this assumption is deeply flawed.
For several years in the past, Xerox had polled 480,000 customers per year regarding product and service satisfaction using a five-point scale from 5 (high) to 1 (low). Their goal had always been to achieve 100% 4s (satisfied) and 5s (completely satisfied). But in a particular year, an analysis of customers who gave Xerox 4s and 5s on satisfaction found that the relationships between the scores and actual loyalty differed greatly depending on whether the customers were completely satisfied or satisfied. Customers giving Xerox 5s were six times more likely to repurchase Xerox equipment than those giving 4s. (more…)