Linking customer and employee satisfaction to financial performance

This study uses statistical analysis to link a series of disparate studies involving measurements of customer satisfaction, employee satisfaction, customer retention, and strategic business unit profitability.

Linking Customer And Employee Satisfaction To Financial Performance

Derek R. AllenMarket Probe Europe

THE CUSTOMER SATISFACTION PROFIT LINK

It should come as no surprise that very few companies even consider the relationship between customer satisfaction and profitability. Establishing an empirical link between customer satisfaction and key business outcomes like profitability or market share assumes that a number of criteria are met. Of greatest concern is the organization's maturity. Companies with relatively unsophisticated or very new customer satisfaction programs are not likely to pursue the types of analysis described in this paper.

The desire to link customer satisfaction...

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