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"Customer Satisfaction is Worthless, Customer Loyalty is Priceless".

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Introduction

"Customer Satisfaction is Worthless, Customer Loyalty is Priceless" Over the last five years, mangers have discovered the full extent to which the opinion of the customer now plays in the success or failure of an organisation. Strong management, discipline and a good business plan are all of course essential in determining the success of a business, however nowadays many businesses fully appreciate the fact that it is customers who can make or break the company. Customers are possibly the greatest assets that a company can have, with them you have options, opportunities and potential success, without them you are doomed for failure. With the majority of today's organisations experiencing a continuous increase in competition, is customer loyalty the sparkle that these organisations require in order to gain the ultimate edge and excel over their respective competitors? Without doubt customer loyalty is priceless, but without customer satisfaction can customer loyalty really exist? The following essay will discuss this and many other related issues concerning online and traditional commerce, resulting in a conclusion, which will determine whether or not customer satisfaction is worthless and customer loyalty, is priceless. There are thousands of organisations every week that introduce their business to the world of e-commerce. In the past few years a prime example of this would be the high street banks such as Halifax and Barclays. Banks such as these are not installing their cash machines at the rate they used to and are instead directing their customers onto their newly created websites where transferring money and instant balance checks can all be done at the click of a button. ...read more.

Middle

Traditional methods of attempting to achieve customer satisfaction have seen companies introducing loyalty cards and personalised credit cards. These have brought about a fresh look to the organisations and with that customer loyalty has followed. This however is immeasurable with the ease at which potential customer satisfaction can be gained from a website. eBay is the world's largest personal online trading community and their main web site can be found at www.ebay.com or the UK one can be accessed at www.ebay.co.uk. There are many people in the world that can categorically say that eBay has changed their life. "That's the kind of customer fervour the eBay Army, nearly 50 million strong, has for the online auction site, which has pioneered a cultural and economic shift in how Americans shop. They're so faithful that 5,500 of them, twice as many as expected, filled eBay's first Star Trek-like convention. So faithful that 90% of them won't consider doing business elsewhere. So faithful that they don't see themselves 'bidding' for items, as much as 'winning' them. And so smitten that they refer to Meg Whitman, eBay's billionaire CEO, as simply 'Meg.'"(www.usatoday.com) The site offers its members a forum for feedback enabling members to keep a track record of the person with whom they're trading. Also there are discussion forums and chat rooms which again bring about reassurance and a greater sense of interaction for individual members. ...read more.

Conclusion

In reality that one customer is at the top of the pyramid, and by the time the news reaches the bottom of the pyramid, assuming the news stops travelling, hundreds, if not thousands of people will have formed a negative opinion on your company. Along with strong management, discipline and a good business plan, there is now sufficient evidence to prove that customer satisfactory is one of the key assets to a company's success. Although founders often thought the Internet would never fully exploit customer loyalty, companies now recognise that online shoppers do have tendencies to favour certain websites and that's why it is essential to captivate and win over existing customers, after all the customers perception of good or bad service is the measure of your success or failure. in attempt to make them loyal customers. After all in order for an organisation to survive and expand it is crucial that a profit is made. To make profit businesses must sell their products and services at a greater cost than it costs to provide them. The profit as such does not come from the products or services being sold, they are simply parts of the equation that form it. The actual profit comes from whoever is prepared to pay more for the product or service than it actually costs to provide it. Ultimately, this is the customer. No profit results in no business, no customers' results in no profit and no customers results in no business. Essentially customers are the business hence customer loyalty is priceless, however it is only credited by satisfied customers. ...read more.

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