High customer loyalty is one of the most important indicators of good performing companies. Since customer satisfaction is directly linked to customer loyalty it is evident`that measuring customer satisfaction without taking customer loyalty into account and vice versa would be misleading.

1. M a r k e t i n g , S t r a t e g y &
M a n a g e m e n t
Ronald van Haaften MBA
www.van-haaften.nl
High customer loyalty is one of the most important
indicators of good performing companies. Since customer
satisfaction is directly linked to customer loyalty it is evident
that measuring customer satisfaction without taking
customer loyalty into account and vice versa would be
misleading.
This is best done using a causal model approach where the
drivers of satisfaction as well as its resulting effects on
loyalty are explicitly introduced.
The approach outlined in this presentation offers such a
framework.
Customer Satisfaction & Loyalty

2. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
What gets measured….gets done!
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“Where there is individual accountability, things get done.
What get measured creates accountability. With no standard
reliable customer satisfaction metric, employees can’t be held
accountable for them and relationships gets lost in shadows.”
“As far as customers are concerned you are the company.
This is not a burden, but the core of your job.
You hold in your hands the power to keep customers coming back,
perhaps even to make or break the company.”
Focus your core
intention on doing
the right things.

3. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Customer Satisfaction and loyalty?
Start Listening to Your Customer!
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There will always, one can assume, be need for
some selling. But the aim of marketing is to
make selling superfluous.
The aim of marketing is to know and
understand the customer so well that the
product or service fits him and sells it self.
Ideally, marketing should result in a customer
who is ready to buy. All that should be needed
then is to make the product or service
available.
(Kotler)

4. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Customer Satisfaction and Loyalty
The Backbone of Your Sales Process
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Find customers Win customers Keep customers
Finding Winning Keeping
Its all about finding, winning and keeping customers…

5. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
The Art of Keeping Customers
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How to keep customers?
What to do? - What is the problem?
Keeping customers…
…is an activity to build loyalty
…is built on mutual trust and integrity
…is something you do together
…is a must
…is only 1/5th of the Finding + Winning cost!!
First things first…
Where is the problem?
Find customers Win customers Keep customers
Finding Winning Keeping

6. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Keeping Customers: Cause & Effect Are
Often Distant In Time And Space
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Purchase Characteristics Quality Improvements
Win customers Keep customers
Winning KeepingPlan, Do, Check, Act
F o c u s y o u r c o re i n t e n t i o n o n d o i n g t h e r i g h t t h i n g s .

7. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Customer Satisfaction & Loyalty
First Some facts to be aware of….
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It is a highly personal matter for the customer, which is influenced by a number of factors.
Customer satisfaction is directly linked to customer loyalty, hence it is evident that
measuring customer satisfaction without taking customer loyalty into account and
vice versa would be misleading.
Customer satisfaction is a multidimensional concept; what is needed is:
1. a way of measuring customer satisfaction in an inter-relational Environment…
2. where relevant factors for determining satisfaction and also loyalty are measured
simultaneously.
Measurement of customer satisfaction thus needs to take a number of interrelated factors
into account. This is best done using a causal model approach where the drivers of
satisfaction as well as its resulting effects on loyalty are explicitly introduced.
High customer loyalty is one of the most important indicators of good performing
companies.

8. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Secondly, What is Customer Satisfaction?
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Satisfaction represents a veritable key of modeling the acquisition behavior of the
customer, being supported by three groups of variables:
1. Cognitive variables, based on the qualitative superiority of the products given by
the performance.
2. Affective variables, based on the emotions produced to the customers.
3. Conative variables, based on the interaction between the provider and the
customer in the buying act.
Customer satisfaction is an overall customer attitude towards a
service provider, or an emotional reaction to the difference between
what customers anticipate and what they receive, regarding the
fulfillment of some need, goal or desire.

9. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
General Characteristics of Customer
Satisfaction.
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General characteristics involve features or qualities related to customer satisfaction serving
to identify this phenomenon among other customer relationship management propositions.
1. Customer satisfaction is a highly variable personal assessment that is greatly influenced by individual
expectations based on his/her own information, expectations, direct contact and interaction, and
circumstances (time, location and environment).
2. Customer satisfaction involves the sum of personal (product and service) experiences driven by its
antecedents.
3. Customer satisfaction is most often related to purchase, loyalty and retention behavior with a effect
on an organizations profitability.
a. A totally satisfied customer contributes 2.6 times as much revenue to a company as a
somewhat satisfied customer.
b. A totally satisfied customer contributes 17 times as much revenue as a somewhat dissatisfied
customer.
c. A totally dissatisfied customer decreases revenue at a rate equal to 1.8 times what a totally
satisfied customer contributes to a business.
4. Customer satisfaction characterizes itself by a high degree of word-of-mouth where satisfied
customers are most likely to share their experiences with other people to the order of perhaps five
or six people. Equally well, dissatisfied customers are more likely to tell another ten people of their
unfortunate experience.

10. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
General Criterion of Customer Satisfaction
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1. A criterion for this purpose is seen as dimensions for the customers’ satisfaction assessment. I have
drawn 23 criteria from the theory as studied.
2. The criteria can be classified in multiple groups which could fulfill a significant antecedent function
in causal models towards customer satisfaction.

11. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect
From Purchase to Quality Improvement
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PurchaseCharacteristics
QualityImprovements
What’s happening where and why?
Do you focus your core intention on doing the right things?
Do you really know what’s motivating your customers?

12. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Customer Satisfaction and Loyalty
Improvement Hurdles
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PurchaseCharacteristics
QualityImprovements
O P E R A T I O N A L I Z E

13. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
From Purchase to Quality Improvement
Cause & Effect model
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• Basic building blocks taken from European Customer Satisfaction Index (ECSI)
• Suitable for consultative B2B & B2C business models
• Variation of SCSB1992, ACSI1994, NCSB1996
• Proven model, since 2000 across Europe
• EU benchmark
PurchaseCharacteristics
QualityImprovements

14. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Raising expectation
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PurchaseCharacteristics
QualityImprovements
Promises you have made….
Positioning the brand in highly over-communicated B2B environments could easily fail
when the minds of customers and prospect obviously get confused. Trout suspects that
people discriminate information to access their mind as a self-defence mechanism. For
this reason, management needs to understand five mental elements in the positioning
process, to position the brand successful in the mind of customers and prospects
(Trout, 1995:3-8)
1. Minds are limited
2. Minds hate confusion
3. Minds are insecure
4. Minds don't change
5. Minds can lose focus

15. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Minds hate confusion
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PurchaseCharacteristics
QualityImprovements
Promises you have made…. needs to be delivered…
The proof of the pudding is in the eating!

16. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Walk the talk!
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PurchaseCharacteristics
QualityImprovements
Promises you have made…. needs to be delivered….to keep your customers
Keep customers
Keeping

17. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Purchase Characteristics
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PurchaseCharacteristics
QualityImprovements
Why? What is the primary reason for purchase i.e. purchase characteristic?
Importance? What is the extent of importance of possible purchase reasons?

18. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Driver 1 - Corporate Image
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PurchaseCharacteristics
QualityImprovements
How does your customer perceive the general image of your organization in terms of products
and services?...be careful….this is your latent promise in the mind of your customer!

19. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Driver 2 - Customer Expectations
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PurchaseCharacteristics
QualityImprovements
Based on your customer previous experience what does he/she expect from your organization
and to what degree does your customer consider that your organization fulfils all their
expectations?

20. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Driver 3 - Perceived Product Quality
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PurchaseCharacteristics
QualityImprovements
How would your customer rate their own experience concerning the product quality during the
Last purchase, delivered by your organization?

21. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Driver 4 - Perceived Service Quality
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PurchaseCharacteristics
QualityImprovements
How would your customer rate their own experience concerning the (customer/project) service
quality during the last purchase, delivered by your organization?

22. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Driver 5 - Perceived Value
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PurchaseCharacteristics
QualityImprovements
Consider the product, service and support your customer have received from your
organization. How would your customer rate this in relation to the prices your organization
have charged?

23. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Result 1 - Customer Satisfaction
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PurchaseCharacteristics
QualityImprovements
Consider your customer current experiences, how satisfied is your customer and to what
degree does he/she consider that your organization presently fulfils all their expectations?
Imagine an ideal organization, how close to this ideal would your customer rate your
organization?

24. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Result 2 - Customer Loyalty
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PurchaseCharacteristics
QualityImprovements
If your customer were to purchase the same product/service again; how likely is it that your
customer would buy from your organization again and how likely is it that he/she recommend
your organization to a friend or colleague?
Why does your customer feel that way about recommending your organization?

25. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Cause & Effect model
Quality Improvement
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PurchaseCharacteristics
QualityImprovements
What suggestions would your customer have to improve their satisfaction (and loyalty) with the
product/service of your organization?

26. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Remember…..remember……remember…..remember…
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PurchaseCharacteristics
QualityImprovements

27. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Customer Information & Feedback
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The level of analysis is high and gives good guide to your business eg:
– Identifying why customers choose your product/service
– Image, branding and positioning in the mind of customers (USP match or mismatch)
– Pricing levels (perceived value for money)
– Perceived level of customer service
– Possible gaps in product and/or service line-up
– Extent of customer satisfaction and maybe even more important the reason why
– Extent of customer loyalty and maybe even more important the reason why
– Identifying customer future service and/or product and/or organizational needs
– Do you focus your core intention on doing the right things or on doing things right?

28. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
More literature Information, White Paper
and Survey Model Questionnaire…and so on
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What to expect?
• Empirical research structure
• Full detailed model questionnaire
• How to calculate and analyze customer feedback & NPS
• Extensive literature study
• Model review: ASCI, NCSB, SCSB, ECSI
• Database & report process mapping
www.van-haaften.nl
click on the link

29. M a r k e t i n g , S t r a t e g y & M a n a g e m e n t
Feedback? > Twitter @rovaha
Thank‘s for joining me on this journey
Slides available on:
www.slideshare.net
www.van-haaften.nl
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