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or revise his/her expectations. As a result, customer satisfaction levels evolve. Why Needs Customer Satisfaction ? It was proven strong correlation between “Completely Satisfied” customers and owner loyalty : a customer will remend his/her friends to purchase the product/service he/she experienced. Harvard Business School study findings : ?Firms with higher level of customer loyalty (not market share) enjoy higher profitability in a given industry . Profit will increase by 25% ~ 85% from 5% increase in customer loyalty. ?Firms bee more profitable overtime due to loyal customers. 30%75%45% 45%35%85%0%50%100%Auto Service ChainCredit CardIndustry LaundryIndustry DistributionSoftwareBranch Bank DepositsProfit Increase Profit Increase from 5% Increase in Customer Loyalty Source : F. Reichheld and E. Sasser (1990), “Zero Defections : Quality es to Life” Harvard Business Review, . Issue. 50050100150200250300Auto ServiceChainCredit Card Industry Laundry IndustryDistributionYear 1Year 2Year 3Year 4Year 5Profit Per Customer (US$) Customer Profit Patterns Over Time Source : F. Reichheld and E. Sasser (1990), “Zero Defections : Quality es to Life” Harvard Business Review, . Issue. Loyal Customer vs. Sales Cycle – Ford Research 1. Cost of acquiring new customers is 5 times the cost to retain existing ones. 2. Frequent of Customer Contact Point. ? Sales : one time for new car buyer. ? Service : eight times for car service. 3. Factors that affect a customer repurchase to your product 80% es from high satisfaction of service experiences. 1. Retention To succeed in our industry, repeated purchase from ourexisting customers are important to our success. Cost of acquiring new customers is 5 times the cost toretain existing ones.2. Related Sales To succeed in our industry, our ability to sell relatedproducts and services (., spare parts, maintenance) toour existing customers is critical to our success.3. Referrals To succeed in our industry, referrals from customers arecritical to our success. Satisfied customers are likely to tell five other people(dissatisfied customer are likely to tell 11 other people)Means of Profitable GrowthProfitable Growth Through Customer Loyalty Percents show contribution to overall customer satisfaction. Source: Mamp。 Service Customer Satisfaction Components Rating Experience Feeling A / 5 Beyond Expectation Surprised B / 4 Glad You Really Do It Delighted C / 3 As Expected Okay D / 2 Disappointed Black Listed E / 1 Betrayed Angry Customer Satisfaction Scorecard Customer Feedback System Sources ofInputResolution amp。 Quality : GQRS / JD Power IQS amp。 DCRC survey Distribution : Dealer Attitude Survey (Company to Dealer Standard) What are factors that block Customer Satisfaction.