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What is customer satisfaction and retention?

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تاريخ النشر: 2016/03/04
Mohammed  Ashraf
من قبل Mohammed Ashraf , Director of International Business , Saqr Al-Khayala Group

Customer satisfaction is a term frequently used in marketing. While it's often abbreviated as CSAT, it is more correct to abbreviate it as CSat. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Satisfaction will increase or decrease based on utility of the product consumption, more and more consumption of any product will decrease the utility  of the that product.

Customer retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship.

Sidrah Nadeem
من قبل Sidrah Nadeem , Global Marketing Manager , Hill & Knowlton

Customer satisfaction, quite simply, is a happy customer.

 

Customer retention however, is a more difficult task these days since consumers have a plethora of similar option to choose from. Thus it becomes very important to engage customers, pre-sales as well as post sales. 

 

Customers like to buy things they like, but they love empathy, concern and care. If these additional elements are taken care of, customers as most likely to remain loyal to the brand.

د Waleed
من قبل د Waleed , Management - Leadership-Business Administration-HR&Training-Customer Service/Retention -Call Center , Multi Companies Categories: Auditing -Trade -Customer service -HR-IT&Internet -Training&Consultation

Thank You Mr Pravin for your invitation ... I will agree with Mr. Mohammed's answer that really covered your question  .. Nothing to add !

Rami Abbas
من قبل Rami Abbas , Sales Manager , Al Houda Contracting and Real Estate Development

I agree with Ms.Sidrah Nadeem answer.

Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

From a marketing perspective, the indicators of customer retention are customer satisfaction with services and good complaint handling. How can these be best quantified to understand customers' experiences while doing business with us?

The question is based on the assumption that customer retention equals customer satisfaction and complaint handling. I disagree with this assumption. In fact, several studies have indicated that there is little correlation between customer satisfaction and retention or future purchases. In one case, only 17% of satisfied customers of financial institutions claimed that they would not entertain a competing offer. The real indication for retention is not customers' perceptions (e.g., satisfaction) but customers' actions.

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