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Definition of Customer Satisfaction

Everyone talks about customer satisfaction and some see it as the “holy grail” of a customer-centric business. But what is it really? Is there a simple basic definition?

committed to excellence and customer satisfaction - 030620091716

Contradictory message?

On Wikipedia, customer satisfaction is defined as “Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation.” But that seems off when you look at the separate definitions of the two words that comprise the term.

So let’s take a look at Dictionary.com:

cus·tom·er

[kuhs-tuh-mer]  Show IPA

-noun

1. a person who purchases goods or services from another;buyer; patron.

2. Informal . a person one has to deal with: a tough customer;a cool customer.

Origin:
1400–50;  late ME; see custom-er1 ;  cf. ME customer  collectorof customs < AF; OF costumier,  c. ML custum?rius; see customary

customer. (n.d.). Dictionary.com Unabridged. Retrieved July 14, 2010, from Dictionary.com website: http://dictionary.reference.com/browse/customer

sat·is·fac·tion

[sat-is-fak-shuhn]  Show IPA

-noun

1. an act of satisfying; fulfillment; gratification.

2. the state of being satisfied; contentment.

3. the cause or means of being satisfied.

4. confident acceptance of something as satisfactory,dependable, true, etc.

5. reparation or compensation, as for a wrong or injury.

6. the opportunity to redress or right a wrong, as by a duel.

7. payment or discharge, as of a debt or obligation.

8. Ecclesiastical .

a. an act of doing penance or making reparation for venialsin.
b. the penance or reparation made.

Origin:
1250–1300;  < L satisfacti?n-  (s. of satisfacti? ) a doing enough,equiv. to satisfact ( us ) (ptp. of satisfacere,  equiv. to satis enough + facere  to make, do1 ) + -i?n- -ion;  r. ME satisfaccioun < AF < L, as above

satisfaction. (n.d.). Dictionary.com Unabridged. Retrieved July 14, 2010, from Dictionary.com website: http://dictionary.reference.com/browse/satisfaction

Well, I don’t think we’ll have any issues with the definition of “customer” but “satisfaction” doesn’t seem to include “surpassing the customer’s expectation.”

How Do I Define Customer Satisfaction?

Based on these accepted definitions (Dictionary.com gets there definitions from the Random House dictionary and other accepted references), I propose a definition that is much closer to what the words “customer satisfaction” actually mean.

Customer satisfaction is the act of just doing enough to be acceptable to a customer. It is simply meeting basic expectations.

Ouch! That’s very different from Wikipedia’s definition and worlds away from how many companies view customer satisfaction.

Should Customer Satisfaction Be Your Objective?

So, based on this definition, do you really want to do “just enough” for your customers? You may decide that this is your business model…

But if you want to build loyalty and generate word of mouth marketing, you should really consider going further. Define the customer experience that you want to deliver and aim for customer excellence.

So, what do you think? Am I wrong in defining the term based on accepted real-word definitions? Or should we continue using the definition that the corporate world thinks it should be?

Cheers!

Eric


Creative Commons License photo credit: roland

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Comments

Twitter Comment


How do you define “customer satisfaction”? [link to post] @ericjacques (cc @hyken, @MarshaCollier)

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Eric,
Another definition! Yikes! Ok so I’ll bite. And to clarify on my tweet earlier, you’re first question is the only question that matters “How do I define customer satisfaction?” You, me, the customer. At the end of the day, it’s the customer’s definition, his criteria that answer that question. Then, and more importantly, based on your own personal definition, what does that mean in terms of your future relationship with the entity responsible for living up to or exceeding your definition (ahem…expectation).

If you are “satisfied” based on your personal definition, does this mean you go back? Does it mean that you move on? And here’s another angle, if you have low expectations and I have very high expectations, but the experience delivered to both of us was identical? Who has the better perceived experience? Who realized greater value? Who’s delighted? Who’s disappointed? And who’s simply content?

To the second question, back to my tweet, I think the answer is again based on the value the customer places on being “satisfied”. If I delight you, you are by definition, satisfied. I have an HVAC repair guy that I’ve been using at my home for about four years. He is knowledgeable, responsive, polite, reasonably priced – rock solid. I’m satisfied. Does he need to exceed my expectations? No, I have very high expectations and he meets them.

So, I think the contrary is the more important question. As a customer, should being satisfied be your objective? As a company, I want to know the answer to that about my customers and prospects, how they define “satisfaction”. If my customers’ goal is to be satisfied, however they define it, they I should strive to achieve that.

This is a really interesting topic, continuing from @deliverbliss Apple post and @reaburn post about Zappos. If satisfying, pleasing, delighting customers is always a moving target, then how do we ever come to a good meeting place as brand and customer where we can focus on co-creation of value?

With my HVAC guy, I have an expectation of service, he meets it. Case closed. He did a great job last week. The next time, I don’t expect him to somehow surpass that and rock my world. My expectation is set. He knows what it is and knows he meets it by the fact that I continue to use him. We both get what we want. Now, don’t confuse this with continuing to earn my business.

I think the whole ever-rising expectations thing is a slippery slope. It leads to disappointment with even the best service experiences, like in Chris Reaburn’s case.

thanks for the post
B
Barry Dalton´s last blog ..Twitter Follow Friday 8

Twitter Comment


RT @ericjacques Defining Customer Satisfaction [link to post]

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Barry,

What can I say, I like having the terms that we bandy around clearly defined…

You make some very valid points. Satisfaction must be based on perception and, most importantly, the customer’s perception.

I hadn’t thought of the link with Chris and Tim’s posts but you’re absolutely right and they probably influenced me unconsciously. It’s been nagging at me for a while.

The customer’s perception is based on their expectations and I also agree that always trying to “one up” the expectation level is a slippery slope. As I mentioned in the post, it depends on your business model and what your objectives are.

Zappos is a case in point. Tony Hsieh wanted them to be a “customer service company that happens to sell shoes” and he branded it that way. He also empowered employees to deliver on the brand promise. In that, he seems to have succeeded.

Whereas, your HVAC repair guy delivers good, dependable service but his core business is still repairing HVAC systems. He delivers that and does enough to keep you calling him back but doesn’t “wow” you. He doesn’t feel that it’s worth the extra cost and effort to do so.

But what happens when another HVAC technician starts calling on your neighborhood and he delivers good, dependable service and more? If he brings you references that you trust, will you try him out?

I’m not saying that every business needs to “Wow” their customers; just that they need to look at their model and make a decision (for the long term preferably) and look at what the cost/benefits are.

On the other side, customers will make their decision to be loyal (or not) based on their needs and available options.

Cheers!
Eric

Eric,
you’re last two sentences nailed it! There is a cost/benefit that includes the variable “what do I need to do to get this customer coming back. And, “customers will make their decision to be loyal (or not) based on their needs and available options”.

Spot on!

Thanks
B
Barry Dalton´s last blog ..Twitter Follow Friday 8

Twitter Comment


Can’t argue with this: Defining Customer Satisfaction post from @ericjacques [link to post] #custserv

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Twitter Comment


RT @MarshaCollier: Can’t argue with this: Defining Customer Satisfaction post from @ericjacques [link to post] #custserv

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Eric,
There is nothing satisfying about someone just meeting your expectations, unless you’re always used to settling for less. As an example, let’s run this idea through a standard grading scale. If failing to meet expectations is an ‘F’ and exceeding expectations is an ‘A’, then the current dictionary definition of customer satisfaction has to be a ‘C’ average. Obviously this needs a revision. Another great post!

Matt

Hi Matt,

Thanks for adding to the discussion.

I agree that satisfaction would be a ‘C’, and this is exactly the point I was making. You’ve said it all in one sentence!

Cheers
Eric

If every customer has a different definition of customer satisfaction, then does ours even matter?

Perhaps the whole idea of satisfaction should be dismissed and we should focus on the Golden Rule:

Treat your customers as you want them to treat you.
Tim Sanchez´s last blog ..Follow Friday – Edition 7

Thanks for commenting Tim!

I agree that it doesn’t really matter. I posted because it’s an often (mis)used term.

On your second point, I suggest using the Platinum Rule. I have a previous blog post about it here: http://ericjacques.org/2010/06/05/the-platinum-rule/

Cheers!
Eric

[...] My last post Definition of Customer Satisfaction was syndicated on CustomerThink and led to a great discussion with Graham Hill. (He also blogs on [...]

Great stuff, Eric. At the core of it, I agree with you 100%.

But in getting firms to change their definition of customer satisfaction — or getting them to “go further…and aim for customer excellence” — means running up against the realities of metric mentality.

While there are lots of different types of metrics, on one level, there is a dichotomy between metrics that are used to measure the effectiveness or efficiency of what’s being done, and metrics that firms use to “keep score.”

Customer sat metrics fall into the latter category. Oh sure, someone is going to say that in THEIR firm cust sat scores are scrutinized and used to identify performance problems and improvement opportunities, yada yada yada.

But in a LOT of firms, cust sat scores are used more as a metric to either punish or reward managers — i.e., a branch or store manager being rewarded/punished for rising/declining cust sat among his/her customers.

I get the sense that what you’re arguing for is a measure that actually helps managers/execs manage the business. If I’m right, then I’d suggest leaving cust sat alone (and let the cust sat proponents fight it out with the net promoter syndrome sufferers).

Better to define a new metric with a fresh start than try to convert everyone’s baked in definitions of customer satisfaction.

Hi Ron! Thanks for visiting and commenting.

I’ve been thinking of writing about metrics and most likely will in the future. However, that wasn’t my intent here.

In my follow up post, I mentioned that my intent was primarily to get people to think about what they’re saying when they say that they want satisfied customers. It’s repeated all too often without any thought.

Having said that, I agree with you. Metrics that are used to “keep score” and punish/reward are useless. They can always be gamed and will be.

I worked in tech support call centres for too long to have any doubts that most metrics are simply there to give stakeholders the impression that everything is “fine”. We’ve all heard of companies where the Customer Satisfaction scores were high but customers were leaving in droves. Those scores are then used as an excuse to do nothing. Further investigation usually reveals that the metrics aren’t implemented in a way that reflects reality.

With any metric, the method used to measure is as important as the metric itself.

Cheers!
Eric

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