Abstract:

Expanding customer satisfaction measurement to the broader concept of Reference Group Management - to include customer satisfaction, employee orientation and image measurement, where appropriate - ensures that the correct decisions to improve customer satisfaction are taken, and that they can be implemented. Introducing the concept of Customer Retention enables the effect of customer satisfaction to be quantified in profit potential terms, providing a link between the 'soft' data of customer satisfaction measurement and the 'hard' data required for business management. The two together can have very substantial implications for the way a business manages the environment in which it operates, and consequently for the way it manages itself.