The classical economic theory defines satisfaction as with the consumption of one unit of a commodity the change that occurs in utility. However that concept was later criticized on the grounds of rationality and there is now as such tool that can count or measure the utility of a commodity. But today management and economic studies consider customer satisfaction a major tool in determining the business goals and their achievements. Customer satisfaction and utility today are considered the practical platform where business entrepreneurs can base their marketing strategy and even the production capacity of their plants.
Thanks to the changing technology the voice of customer analysis is now heard louder. Actually today collection of data, co relation of statistics and results evaluation has been made much quicker and reliable. There are tools and technology that on their own collect data from multiple sources, interpret them and bring out the final outputs in precision. The main source of such statistics is the various surveys conducted in the consumer market.
When a customer survey is conducted, each and every factor related to that is important. Either you are selling hot dogs of some luxury cars, every commodity has a customer and there are various satisfaction levels that vary with each consumer. Of course, a car manufacturer wont be producing hot dog or a hot dog vendor won’t be supplying car, but each and every commodity gives a satisfaction to the buyer.
As soon as the consumer is gaining higher satisfaction levels he will certainly be demanding more of it until law of diminishing marginal utility operates. And this is where all business lays their interests. For instance if a business marketing and production strategy is relying on customer satisfaction analysis he will be supplying his commodity with particular attributes till its marginal utility reaches a particular low point. Till that time the product will be produced and introduced in the market and will be marketed on the same basis as before. When the businesses see decline in demand followed by falling utility, that will signal a change in marketing and production strategy.
The similar product will be then produced and introduced with some different twist that the production management thinks will be sufficient enough to raise a whole new graph of rising demand. Here also customer satisfaction analysis plays a major role. This analysis shows the trends in consumer preferences that can later form of base of production and marketing.
Until here it was all about calculating and interpreting customer satisfaction statistics, but practically if look into that your statistics and data interpretation alone will not serve your purpose of rising business graphs. There are several other factors as well like your customer support, after sales services etc that contribute a lot in business marketing and promotion. A satisfied customer is the biggest reward and none can challenge the effectiveness of his word of mouth marketing. And that is possible only when he is receiving satisfactory product and services from you.