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Problem

Leading service companies such as American Express and FedEx measure customer satisfaction on a quarterly basis across the global market. Discuss the relationship between customer satisfaction and loyalty.

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Leading companies always emphasis more on customer satisfaction. All their marketing efforts are directed towards improving the product or service features according to the tastes and preferences of customers. Therefore they conduct an analysis and study the customer satisfaction and loyalty to design future strategies of marketing.

Step 2/2

Customer Satisfaction and Loyalty:

Customer satisfaction is a measurement of customer’s attitude regarding products, services and brands. A customer is generally satisfied when his/her expectations are being met through the product. Customer satisfaction merely does not guarantee that these customers will be continuing with the same brand. Once a customer derives the utmost satisfaction from a product he develops a loyalty towards the product or brand which will lead to repeated purchase.

Customer loyalty is a behavior which shows that the customer is purchasing the same brand repeatedly. Satisfied customers are six times loyal than unsatisfied customers. It is not necessary that a satisfied will be a loyal customer. Loyal customers generally forgive some unsatisfactory experiences and remain committed with the brand.

Therefore companies try to analyze the things and factors that make a satisfied customer became a loyal customer.