Is Customer Satisfaction Worth the Effort?
Charles Colby, President, Rockbridge Associates Linkage analysis measures the impact of customer satisfaction on the bottom line. By linking satisfaction survey information with customer behavior, it is possible to validate the benefits of measuring and managing satisfaction. Linkage analysis also guides the allocation of resources. The cornerstone of a successful business (or non-profit) is customer loyalty. Loyalty can be defined by many factors, all measurable in a survey, including: satisfaction, perceived value, future purchase/renewal intent, and advocacy (e.g., net promoter score). Many organizations, including Rockbridge clients, invest substantially in measuring loyalty and in making improvements in services based on customer feedback. As management invests in surveying customers and acting on the information, questions arise as to the economic benefits to the organization. Questions management may ask include: • Does satisfying customer needs really matter? • What is the retu
