Make or break: a simple non-compensatory customer satisfaction model

Keith Chrzan and Michael Kemery

Maritz Research

Background

Manufacturers and service providers commonly measure the satisfaction of their customers – not unreasonably, they believe that increases in customer loyalty, positive word-of-mouth and revenues from repeat business will result from improved customer satisfaction. In addition to linking satisfaction measures to these business outcomes, managers put customer satisfaction data to a variety of uses. For example, organisations may hold managers to account by tying compensation to specific numerical goals, thus making customer satisfaction results a report card on managerial performance. Managers also use customer satisfaction surveys prescriptively, to identify for improvement the elements of their products and related services that drive customer satisfaction.