ON ADVERTISING WD On Advertising is published by Wesley Day Advertising
CUSTOMER SATISFACTION MYTHS.
You don’t need to be told why customer satisfaction is important. But do you know how to assess and respond to customer dissatisfaction? Myth #1: Price is the only factor that matters. Studies of multibrand products reveal that while price has a clear effect on the initial purchase decision, it had no more impact on customer satisfaction and repurchase intentions for the discount brand than for the higher-end brand. The overall interaction with the sales staff influenced satisfaction much more than price. Myth #2: You can build satisfaction through promotional campaigns or coupons. While they do increase the likelihood that a customer will shop with you again, they do not make for more satisfied customers. You’re buying short-term sales, not long-term loyalty. Myth #3: Customer satisfaction should be maximized. Optimize customer satisfaction for maximum profitability – there is a point where it no longer makes sense to increase satisfaction. Myth #4: Customer complaints should be minimized. You should encourage complaints -- if customers don’t complain, they just stop shopping without explanation, and then it is too late. Myth #5: Customers are either satisfied or dissatisfied. The entire consumer experience needs to be understood to allow you to make improvements on those specific things that cause dissatisfaction.