RW Humes & Company

customer satisfaction measurement

Does customer satisfaction work? In a recent customer satisfaction study, Toyota Motor Sales U.S.A. compared the performance of its dealerships with highest satisfaction ratings to dealerships with the lowest ratings. Toyota found that dealerships with highest customer satisfaction ratings enjoyed:

46% higher net profit,
81% higher net profit as a percentage of sales,
67% higher net profit per employee,
10% lower new vehicle selling expense,
74% higher net profit as a percentage of gross profit,
43% less salesperson turnover and
30% lower advertising costs per vehicle.

And, it is generally accepted that it costs five times more to acquire a new customer than it does to retain an existing customer.

The customer satisfaction measurement is a systematic, continuous, and objective tracking of your customers' satisfaction with your products and services. It the voice of the customer, directly and on an on-going basis. At the heart of customer satisfaction measurement are ratings of performance on several attributes plus measures of overall satisfaction, loyalty and switching intentions.

A customer satisfaction measurement is performed by first conducting a needs assessment to discover the relevant attributes. The needs assessment is followed by periodic quantitative surveys that embody the measurement. Finally, survey results are used to steer continuous improvement programs.

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customer satisfaction measurement