An index method for measurement of customer satisfaction

Customer satisfaction (CS) has become an important issue for commercial and public service organisations. Companies win or lose based on what percentage of their customers they can keep. Success is largely about retention of customers, which again depends on CS level. It would be a great help to be able to comprehensively measure the quality of product and service, by relating the measures of quality to real customer behaviour. Some companies get feedback about CS through the percentage of complaints, some through non‐systematic surveys, again some do not measure CS at all, because “the system would not add anything useful and is very time‐consuming”. Give three managers in the same company the same objective: to improve CS, however it may be measured, and they will come up with three distinctly different and incompatible plans. CS requires a number of ingredients, all of which need to be considered. Aims to develop and simplify measurement systems by using a general formula that makes quantitative measurement of CS possible. Considers four important aspects that have a negative or positive influence on profitability related to CS.