Speaker 1: Hello and welcome to Marketing91.com. In this video, we are going to cover the topic on Customer Satisfaction. Let's start with the introduction. The feeling of pleasure or disappointment that a customer faces as a result of comparing a product or service's perceived performance or outcome to their expectations is called customer satisfaction. If the performance of a product matches the expectations, then the customer is satisfied. A customer is dissatisfied if an experience or the performance of a product falls short of expectations. But if a product or service manages to exceed customer expectations, then the customer is delighted. Moving further, a highly satisfied customer will 1. Stay loyal to the product and brand for a longer period of time 2. Continue to buy more products as the company introduces upgraded versions and new products 3. Talk positively about the product and the company to other potential customers 4. Be less sensitive to the price of the product 5. Pay less attention to competing brands 6. It can potentially cost less to an old and loyal customer than a new customer because transactions can become routine. Moving on to the aspect of monitoring satisfaction. Many companies try to measure their treatment towards their customers. They are trying to identify the factors that shape the satisfaction of a customer. According to those factors and depending on the feedback, companies try to change their operations and ways of marketing in order to have better sales. Smart firms make sure to measure customer satisfaction on the regular as it is the most important key to customer retention. Moving further, these are some of the methods to monitor customer satisfaction. 1. Regular repeat orders 2. Referrals by one customer to another 3. Customer satisfaction surveys 4. Complaint rinse 5. Mystery shopping 6. Net promoter score 7. Customer effort score Now let's look at the method of net promoter score. Fred Schreithel, the author, creator and business strategist, believes that one needs to ask customers a single question. How likely is it that you would recommend this company to a friend or colleague? Customers need to answer the questions with the numbers starting from 0 to 10. Higher the number, more satisfied the customers are and more admired the company is. If the NPS is low, the company is headed for trouble. Now let's look at the NPS scores of some market leader firms. According to the data collected from various sources, some of the scores of companies are Netflix stands at 68 Starbucks at 77 Amazon's NPS score is at 62 Airbnb at 74 and Tesla at an astounding 96 So how does Nestla earn such high scores? With Tesla's NPS at a crazy 96, Bloomberg's survey explains a lot about Tesla sales and customer satisfaction and why they have such high NPS. The survey studied 5,000 Model 3 owners and says that nearly 99% of Model 3 owners would recommend Tesla to family and friends. Researchers found in the follow-up calls made later that several respondents took their friends and families on a test drive. Next up is the method of Customer Effort Score. Customer Effort Score or CES refers to the amount of effort a customer needs to exert to get an issue solved or product purchased or returned on their questions answered. You can generally measure it in a single item metric. The survey generally asks a question like how easy was it to interact with the company? Answers can range from scale or very easy to very difficult. The belief system is that that customers will be more loyal to any service or product that will be easier to use. Now let's look at some examples of companies that have taken customer satisfaction to the next level by making the product or service easier to use. Example 1, Amazon's One-Click Patent Amazon secured their One-Click Patent idea in September 1999. This concept was unheard of that customers could enter their billing, shipping and payment information just once and then later anytime could simply click a button to buy something without having to re-enter the details. This was a major breakthrough in the concept of hassle-free online shopping. The brand's proprietary One-Click Patent made it extremely famous and led on the path from just being a bookseller to becoming a digital memo. The One-Click technology was extremely valuable because it was customer experience in action. The One-Click Patent for Amazon expired on 12th September 2017. So that's it folks. This brings an end to the topic on Customer Satisfaction. These are some of the sources and links referred to for the content in the video. If you've liked the video, do subscribe to our channel. If you want to view these videos in an organized manner, you can visit freecourses.net where all our videos are arranged in the form of courses. Thank you and see you in the next video.