We continue the ACCORDING TO BLOGGERS conversation with Marketing Professor Philip Kotler’s written response to this question:
What do you think are the most important factors in creating customer satisfaction these days?
KOTLER: Customers are most concerned with quality, service, and value. All of these constitute competitive opportunities in markets where they are lacking. However, we are noticing that many companies and industries are rapidly improving their quality, service, and value. Consequently, these benefits are becoming normal expectations rather than distinctive winning attributes. Now design, speed, and customization are becoming more critical in influencing customer choice. Depending on the industry and product type, market leaders will find further attributes and benefits that they can turn into salient and compelling differentiators.
BLOGGERS: What say us? What factors do we think are most critical in creating satisfied customers? I’ve added a few thoughts – feel free to do the same.
johnmoore: The most important factor in customer satisfaction can be summed up in one word … FOLLOW-THROUGH. (Okay, two words and a hyphen.) The actions of companies need to follow their marketing rhetoric. Simply put, companies need to DO what they SAY they will do in all their conversations with customers. Forget layering on customer loyalty and customer appreciation programs, the most meaningful way for companies to create satisfied customers is to simply do what they say they are going to do.
Why is a question of customer satisfaction answered by discussing competitive differences? Isn't Kotler trying to be customer focused, yet the answer is not!
John, I like your answer instead. While the products continue to align, simply keeping your promises is the way to satisfying customers.
Posted by: Dave J. | May 04, 2005 at 09:05 AM
To clarify ... this exercise is not a matter of our answers being right and Kotler's being wrong. Rather, I see this exercise as being a way for our thoughts on marketing to be influenced by different perspectives.
Kotler says a lot of smart things. And Bloggers say a lot of smart things too. Hopefully we'll end up smarter marketers as a result of reading Kotler's and Blogger's opinions on marketing issues.
Posted by: johnmoore (from brandautopsy) | May 04, 2005 at 09:59 AM
I think meaning and belonging are going to be the two most important factors in creating customer satisfaction. Any company that can help consumers find meaning or belonging is going to succeed. Think Apple, Trader Joes, etc.
Posted by: Tom Willerer | May 04, 2005 at 10:26 AM
The goal should not be "satisfied" customers. I think this question is flawed. Customer satisfaction is not the measure to use these days. There's lots of data from Fred Reichheld and the Harvard Business Review to Gallup saying that the satisfaction measure does NOT indicate the level of customer loyalty a business has. Even extremely satisfied customers are no longer loyal customers, and will switch companies in a heartbeat.
Posted by: Jackie Huba | May 04, 2005 at 12:12 PM
Oops, hit the Post button too soon. Here's the two resources I mention above that talk about why customer satisfaction doesn't count anymore.
From the Harvard Business Review: The One Number You Need to Grow
From the Gallup Management Journal: Why Customer Satisfaction Is The Wrong Measure
Posted by: Jackie Huba | May 04, 2005 at 12:17 PM
Hey, John, I think what Kotler said is true. But does creating a competitive difference automatically create customer satisfaction? Maybe the rest of this section of the book is needed to see where he goes with this.
Posted by: Dave J. | May 04, 2005 at 12:19 PM
A satisfied customer is the one that gets what they were looking for, including their stated and implicit needs and wants.
All the factors that were mentioned have been quite the same since the dawn of commerce, and some are variants of others.
What is different among groups of consumers and target markets is the mix of these factors. Some customers want design and quality (think BMW). Others want speed and customization (a la Dell). And there’s value, with plenty of fans.
I believe it is a matter of mixing the right amount of "ingredients" according to the market segment we are willing to serve.
Posted by: Gabriel Salcido | May 04, 2005 at 08:01 PM
I agree with what Mr Kotler has said. However, I strongly believe that Quality is no longer a strong differentiator. Along with good service, what a customer looks forward to is Experience. Experience at every touch point.
Posted by: Amitesh | May 05, 2005 at 05:40 AM
Quality, Service, and Value are all subject to the power of the brand's story and the ability to influence customer mindset. For example, most people would rate Mercedes higher on quality than Acura, when that's simply not the case.
I hate being satisfied. I'm too addicted to being wowed by Whole Foods, and Mini Cooper, and JetBlue oh my!
Posted by: Aaron Dignan | May 05, 2005 at 06:55 PM
To begin with, you cannot create satisfaction. Satisfying a customer’s needs is merely meeting expectations. Do not meet expectations, however, and you can certainly create dissatisfaction.
As Professor Kotler quite correctly pointed out, Quality, Service and Value are no longer differentiating factors. In an information-rich, hyper-competitive, commoditized world, differences between products are minimal and unsustainable.
Those charged with the health of a manufacturer should know CPR, three elements contributing to a customer’s overall level of satisfaction. These are: Convenience; Personality and Reliability.
Convenience: This is a proxy for the shopping experience and includes
- access to information (gives the buyer confidence to make his/her decision, ensures comfort with the decision once made);
- ease of purchase (product availability, treatment by supply source, speed of delivery, payment terms); and
- after-sales service (installation, technical/ warranty support).
Personality: This is a measure of the extent to which a buyer is attracted to a product during the purchasing process and connects with the product subsequently. It comprises buyer affinity with the brand, design (style, ergonomics) and available options (accessories, services) which, in combination, create a product that is implicitly and explicitely unique and personal.
Reliability: This is a reflection of the ownership experience which requires that the product does what it is supposed to do and any accompanying service provided is as expected and, finally, that these occur consistently over the ‘normal’ lifetime of the product.
Ultimately, product is about the manufacturer. CPR is about the customer.
Posted by: Big Picture Guy | May 06, 2005 at 08:55 PM