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Managing quality: What are the best practices in measuring customer satisfaction

Measuring Customer Satisfaction. What are the best practices in measuring customer satisfaction. In a paper, explain your findings and link them to your current organization's practices for measuring customer satisfaction. Identify whether your company's direction meets or exceeds what the best practices advocate. Make sure you provide at least three supporting sources.

Suggested Outline:

Cover page*
Identification of best practices
Types of industries
Linkage to your organizations practices
Recommendations for your organization to improve on
References* (at least three).
See Syllabus "Due Dates for Assignments & Exams" for due date information.

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Measuring Customer Satisfaction

Sales figures or income statements alone cannot measure how well a firm is competing, within its industry or market. Any organization that provides services or products for consumer use, must consider the value of customer service, as part of the total package. However, measuring customer satisfaction is not a simple task. There are many facets of satisfaction, which may be measured in very different ways. The nature of the business or industry may also determine how customer satisfaction is measured.

Some forms of measurement gauge the level of satisfaction indirectly, by calculating the number of interactions that result in a sale or positive outcome. Others measure satisfaction directly, by going directly to consumers for input. Regardless of the means of measuring satisfaction, it must be able to answer all or most of the questions an organization needs to know
about customer service performance. "Without a clear and accurate sense of what needs to be measured, how to collect and analyze data and how to use it, no firm can be effective in this new business climate" (Caciopo, 2000). Customer service measures should provide information the organization needs to develop a competitive strategy.

Best Practices

Before a program can be designed, to measure customer satisfaction, the organization should evaluate what data will be most useful. Kevin Caciopo (2000) suggests that firms ask the following questions: "How will the information we gather be used? How will this information allow us to take action inside the organization? How should we use this information to keep our customers and find new ones?" Identifying the need for collecting such data, is the first step in designing a program to measure customer satisfaction.

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Solution Summary

The solution discusses what are the best practices in measuring customer satisfaction.